Limiting dividends distribution

[mhps]

I am new but confused with NuShares

@tomjoad
There are NuShares that have been lost forever, such as when an owner abandons them or the keys are lost. These NuShares would still receive dividends in our automated distribution

Yes this is an issue which will be bigger as time goes on. I’d like to see the distribution list limited to addresses that have minted at least once in the last, say, year.

@CoinGame could you move the 4 posts under the one quoted above after this one? Thanks.

[Sentinelrv]

I am new but confused with NuShares

Yes this is an issue which will be bigger as time goes on. I’d like to see the distribution list limited to addresses that have minted at least once in the last, say, year.

This is actually a good idea. It would also remove dividends from people who just sit on their NuShares and don’t participate in security or decision making. If they don’t fulfill their responsibilities as a shareholder then they probably shouldn’t receive any of the profits that are distributed. This would hopefully cause more people to start minting and paying attention so that they’re eligible for receiving dividends at times that we give them out.

[mhps]

I am new but confused with NuShares

This would hopefully cause more people to start minting

To get maximum effect, add “voting once” to the criteria, too.

[jooize]

What if they disagree with everything? Could be circumvented by just voting on a gibberish hash.

Nice idea. Post it in a new thread so we can see some discussion.

[Nagalim]

1 vote once in the last year for literally anything for each address you own is not going to derail the network or even compromise anyone’s morals. We could also use fees or park rates.

[Cybnate]

I’d like to see the distribution list limited to addresses that have minted at least once in the last, say, year

I think this is a great idea and like this has been raised. Maybe 6 months is better, just because dividends are usually credited twice a year. Not sure about the voting though, this might be too complex to code and could potentially have some adverse effects with motions or grants up for voting around the time dividends are paid, if not carefully crafted.

On the other hand this is not urgent, it could be a nice PR thing to payout dividends when things are booming, for now I believe the share buyback scheme is adequate.

[Sentinelrv]

Not sure about the voting though, this might be too complex to code and could potentially have some adverse effects with motions or grants up for voting around the time dividends are paid, if not carefully crafted.

Yes, it’s possible we could have a bunch of shareholders who usually don’t participate start minting after a dividend distribution is announced in hopes of claiming a reward. If they only need to mint one block then there might be hope of them achieving that as long as they start minting immediately after hearing the announcement.

To prevent people from sitting on their shares all year and then only minting when it counts, perhaps the number of blocks minted would need to be raised from only one a year to a higher number, so that it would be impossible to gain a dividend reward by coming out to mint at the last minute.

About how many times a year would the minimum amount of 10,000 NuShares mint a block if they were minting all year long? We should probably choose a number of blocks minted which is smaller than that, so that even people who have the minimum of 10,000 shares have a chance to collect dividends as long as they keep their client online and continuously minting.

[mhps]

Not sure about the voting though, this might be too complex to code

It just takes longer to scan the blockclain. To avoid people voting for random hashes, the criteria could be that "eligible addresses are those that have voted for a motion/grant of which the maximum YES eventually exceeded 5%". This might be complicated to code or not. Let’s concentrate on the requirements. The devs may have better idea on the implementation.

could potentially have some adverse effects with motions or grants up for voting around the time dividends are paid

Just limit the mint/vote counting period to be N days BEFORE the announcement.

To prevent people from sitting on their shares all year and then only minting when it counts

I think if we can use dividends as an incentive to get someone to experience minting and voting once, it is already a big win to Nu.

But we don’t have to stop there. We could have a strategy to take advantage: we make a rule that 1. mint/vote are counted for the N days before the distribution day, and 2. Nu would pay dividends once ~N days on average but at random times. This incentivise continuous minting and voting.

We should probably choose a number of blocks minted which is smaller than that, so that even people who have the minimum of 10,000 shares have a chance to collect dividends as long as they keep their client online and continuously minting.

Yes this is very important. Nu should not ignore those who test the water with small funds. We should do our best to convert them! I believe it takes 78000/1440=54 days for a 10,000 share chunk to mint a block, if all shares are minting. However there are only ~40% shares minting, so the average time is ~22 days. Not bad.

So to combine the ideas above, When Nu decides to distribute dividends,

1. Nu splits it in 10 installments.
2. An installment will be distributed after a Counting Period, defined as a random number of days between 22 - 60 days, until all installments are distributed.
3. For each distribution, an address is eligible only if it has voted at least once for a motion/grant of which the maximum YES eventually exceeded 5%, in the preceeding Counting Period.

I imagin the dividends executer only needs to decide the timing, enter the number of days of the relevant Counting Period, enter the total amount of dividends, get the currrent elegible addresses, and distribute the dividends.