Supplement #1
The Tau parameter (t) establishes the fraction of rewards (R) which is contributed to the Treasury each epoch. Tau functions as a tax contribution to the Treasury. Tau is currently set to 0.20, or 20% of the total reward pot. The current balance of the Treasury as of Epoch 444 is 1.38 Billion ADA*.
*Source: Pots | Cardano Explorer (cexplorer.io)
Between Epochs 433 and 443 the average reward pot was 26.4M [ rho * reserve + fees ] , the average treasury contribution per epoch was 5.2M [Pots | Cardano Explorer (cexplorer.io)], the average distributed to SPO’s and delegators was 10.1M, and the amount returned to the reserve was 11.1M.
11.1M was returned to the reserve due to the fraction of unclaimed rewards returned to the reserves.
The effective treasury tax rate is closer to 33%. So approximately 30 Million ADA is added to the Treasury each month.
Possible Adjustment that could be made:
Reduce the treasury tax rate to approximately 5.0% of distributed ADA rewards by setting Tau to 0.030. Making the effective rate roughly 5.0% This reduction could be adequate until Voltaire self-determination governance.
*Please Note: The Cardano Foundation released an open source rewards calculation today - 10/30/23. We will work them to verify that these numbers are correct and update as needed.
Releasing an open source rewards calculation (cardanofoundation.org)