EOS NodeOne - Block Producer Revenue Analysis

leo_seoleo_seo Posts: 5 Brand New

Block Producer Revenue Analysis by EOS NodeOne

We, EOS NodeOne, are pleased to share our Block Producer Revenue Analysis.
This work is based on EOSIO Dawn 4.0 and analyses by Thomas Cox and EOS Canada as reference.

Improvements :

1. BP Portion of Inflation

The continous inflation rate for BP reward shuold be recalculated corresponding to 1% inflation setting as 0.995% continuously compounded.
However, previously, the rate used was 0.975%, which creates a huge gap when it comes to the total number of new tokens per year.

2. Accurate Distributions

  • With the setting at 0.995% continuously compounded, we provide three scenarios from the Pareto distribution according to the simulated total percentage of top 21 votes.
  • In this analysis, each shape value of the Pareto distribution is set differently. For example, log(5)/log(4) for 80% top 21 votes and log(3)/log(2) for 66.6%, which is different from the EOS Canada’s analysis.
  • We added a distribution by arithmetic distribution from 1.65% to 0.00%, which can be easily compared to the previous Pareto distributions.
  • You can add your own voting scenario to compare.

3. Revenue Analysis Simulation

As you change the EOS price and the Monthly Operational Cost, you get the corresponding revenue analysis including the revenues of the last rewarded BP & the last BP whose income is more than Monthly Operational Cost. This might help you understand the reward situations from various voting results.

There is always a room for improvement. Any advice would be very helpful.

https://docs.google.com/spreadsheets/d/1CJXrMQmxqp4PFjogDz74RBMNsYR3CswIktw-f_MwJRI/edit#gid=2096296572

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