Skip to content
New issue

Have a question about this project? Sign up for a free GitHub account to open an issue and contact its maintainers and the community.

By clicking “Sign up for GitHub”, you agree to our terms of service and privacy statement. We’ll occasionally send you account related emails.

Already on GitHub? Sign in to your account

docs: rfc-323 tari throttle #130

Merged
merged 2 commits into from
Mar 21, 2024
Merged

docs: rfc-323 tari throttle #130

merged 2 commits into from
Mar 21, 2024

Conversation

CjS77
Copy link
Collaborator

@CjS77 CjS77 commented Mar 5, 2024

TariThrottle is a simple process controller designed to modulate the layer two burn rate in order to achieve two
goals:

  • Primarily, keep the emission and burn rate roughly balanced (ensuring long-term sustainability of Tari), and
  • Secondarily, to maintain the total circulating supply at a target value (satisfying an implicit assumption in
    cryptocurrencies that token supplies are finite).

A proof-of-concept controller has been implemented and tested in a simulation environment ([repo]). As the results
below attest, the controller logic is sufficient to achieve these goals, even under highly volatile layer two fee
conditions.

However, the controller achieves the goals at the expense of a rapidly changing layer two burn rate, which may be
detrimental to the sustainability of validator nodes.

At the risk of the tail wagging the dog, the primary conclusion of this study is that the TariThrottle controller
should likely not aim to maintain a supply target, but instead to ensure a sustainable layer two ecosystem, to
whit:

  • maintain a constant demand gradient so that under normal circumstances there is always a demand for new Tari and
    thus Minotari are constantly being burnt to satisfy this demand,
  • marginal Validator Nodes are able to operate at or near break-even rates, while maintaining a healthy reserve of
    capacity for surge demand, and
  • the supply of Minotari is sustainable over the long-term.

Therefore, the conclusion of this study is not to abandon the original targets of the TariThrottle completely,
but to adjust the priority of the primary goal (a sustainable long-term balance), and make it subservient to the
primary goal of ensuring a constant demand gradient.

A modified Tari throttle model that seeks to achieve these aims is outside of the scope of this RFC and is left for
a follow-up study.

@CjS77 CjS77 changed the title wip: rfc-323 initial draft wip: rfc-323 tari throttle Mar 5, 2024
@CjS77 CjS77 changed the title wip: rfc-323 tari throttle docs: rfc-323 tari throttle Mar 5, 2024
Copy link

cloudflare-pages bot commented Mar 6, 2024

Deploying with  Cloudflare Pages  Cloudflare Pages

Latest commit: c5d1517
Status: ✅  Deploy successful!
Preview URL: https://0dc316ee.rfcs-6p3.pages.dev
Branch Preview URL: https://rfc-323-throttle.rfcs-6p3.pages.dev

View logs

@CjS77 CjS77 marked this pull request as ready for review March 6, 2024 13:19
@CjS77 CjS77 merged commit e12f9ba into main Mar 21, 2024
4 checks passed
@CjS77 CjS77 deleted the rfc-323-throttle branch March 21, 2024 19:35
Sign up for free to join this conversation on GitHub. Already have an account? Sign in to comment
Projects
None yet
Development

Successfully merging this pull request may close these issues.

None yet

2 participants