Discussion: Implement the Distribution of the Block Rewards in Daemon

As it currently stands, when a block producer produces a block, the rewards are currently sent to the “coinbase receiver” (if set) or to the block producer key. The rewards have to be manually distributed by the block producer.

I believe Mina is the only Proof of Stake protocol that I’ve come across that does not have the automatic distribution of rewards on the protocol level as it puts all of the trust onto the block producer to be honest with the rewards.

If we extend the scenario to an individual who has no desire to send out any rewards, there is no recourse that the delegates can do about it. Additionally, as the stake is offset by 2 epochs, the delegates are essentially out on the rewards for 3 epochs.

Would it be technically challenging to implement the distribution of the rewards on the protocol level? Would limitations exist such as the maximum number of delegates a block producer could have?

2 Likes

Also discussed here Staking Rewards - can these be automatically distributed?

2 Likes

On-chain reward payouts would certainly be a great addition to the core protocol. Not only would it make rewards more secure, but also result in a more decentralized staking pool distribution. To me it seems like many people who are interested in staking go with bigger pools, not only because they think it yields more rewards, but also because some of them are understandably scared of smaller, not so well know, validators. If rewards were paid on the protocol level, no one would have to be scared of loosing their rewards anymore.

2 Likes

I would suggest making an issue on GitHub. I’m not sure this forum is monitored by the teams unfortunately. Haven’t seen a reply from a team member for a long time

2 Likes

core team is implementing this or may consider outsource this to ecosystem partner team?