SIMD-0119: Additional Amounts for Distribution

proposals/0119-additional-income-for-distribution.md

@@ -0,0 +1,64 @@
+---
+simd: '0119'
+title: Additional Amounts for Distribution
+authors:
+  - diman
+category: Standard
+type: Core
+status: Draft
+created: 2024-02-22
+feature: none
+---
+
+## Summary
+
+Expand the mechanism for distributing inflation rewards: add the distribution 
+of additional amounts.
+
+## Motivation
+
+To enhance their competitive edge over stakers, validators employ various 
+methods to allocate some of the additional amounts among their stakers. It is 
+suggested to implement such a mechanism at the protocol level. This will, among 
+other benefits, offer a simple and uniform way for independent 
+analysts/websites to access this information.
+
+## Alternatives Considered
+
+Use of pools with a single validator: minting pool tokens, subsequent burning 
+of tokens.
+
+## New Terminology
+
+None
+
+## Detailed Design
+
+Each validator has its own treasury, which is replenished during the epoch by a 
+simple transfer. At the beginning of the next epoch, the amount distributed 
+among the stakers of that validator is increased by the amount accumulated in 
+the treasury.
+
+Optionally (as this is not the final design, but a proposal for discussion), 
+there could be several treasuries, at least two: one for distribution only 
+among stakers and the other among both stakers and the validator (according to 
+the validator’s commission rate on inflation).
+
+The implementation as a separate program, or an extension of the vote program, 
+is left for discussion of this proposal.
+
+## Impact
+
+Validators will be happy: they won’t have to deal with complex manipulations 
+with pools or other distribution programs. The addition of the proposed feature 
+itself does not require any additional actions on the part of the validator if 
+they do not distribute additional amounts.
+
+## Security Considerations
+
+None
+
+## Backwards Compatibility
+
+This is a new functionality at the protocol level. Addition through a feature 
+gate. There will be no backwards compatibility.