Suggestion : Bring ‘bonus reward’ system to encourage longer contribution to the pool

Developers
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Totally. The other thing, tho, is that whatever happens - a single pool in Cardano cannot get more than 1% of total reward, so when a pool caps - it becomes import for them to get a proportional new stake only out of new stake in the system. Or otherwise it might cause actually an outflow of old stake. Example:

  1. There are 100 pools and a 1000 coins of total stake, so each pool contains 10 coins (exactly 1%) and the system is in equilibrium

  2. Imagine that each epoch there’s a total reward in the system of 100 coins, so each pool receives 1 coin, and splits it among all its stakers proportionally. For simplicity we will imagine they are not restaking profits.

  3. Now there’s a new user with 10 coins and he has to chose a pool. Whatever he choses - this pool now has 20 coins out of total 1010 coin.

  4. This pools now has 1.98% of total stake, and all other pools now have dropped to 0.99% of total stake.

  5. So when next reward of 100 coins is coming - first pool will receive 1 coin, since it is capped at 1 percent, and 0.5 coins will go to the new staker with 10 coins, so all the old stakers will now get twice as less coins in reward.

  6. And, for example, an old staker with 5 coins that now receives here 1/4 coins immediately realises that he can withdraw his 5 coins and move it to either one of other pools and receive there 1/3 coins, or actually split it among 5 other pools and receive ((1/11)*5) coins which would sum up to ~0.45 coins (exactly why stake diversification is a good idea).

At this point the new person with 10 coins might decide that he hasn’t decided on a pool yet and withdraw his stake of 10 coins completely (so the first pool ends up with half of the stake he initially had), or the person might decide to also diversify and to spread 10 coins among 10 pools, so the first pool ends up with only 6 coins.

This is why the whole system is very smart and interesting, cuz we gonna directly observer pool-fluctuations like this, but, of course, on a smaller scale :slight_smile:

In any way - this does show that it might be rational for a pool to try attract new people only up to a certain point, and then it becomes more rational to try to keep old stakers instead of getting too much new ones. So yeah, bonuses for permanent users might actually be a good idea for them.

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