this might be a bit technical, but I would like to understand more in details why the reward formula was chosen as such ( https://hydra.iohk.io/build/790053/download/1/delegation_design_spec.pdf p38):
What is this strange factor, it seems to artificially advantage big pools over small pools, doesn’t it? If that is done purposefully why advantage big pools over small pools?
Also it seems to make things non-linear, contrarily to what seems presented here (where it seems linear):
Why chose to have a factor a0 that changes return on interest rates, rather than limiting the proportion of delegated stake (σ-s) vs directly owned stake (s) , the same way that k limits pool size.
For example at first glance I would be happy with a formula such as:
it seems naively that it can both prevent efficiently Sybil attacks and allows decentralization and does not advantage big pools over small ones.
Can you explain why the chosen formula (above) is better, and why it is important that bigger s should improve Ros, (rather than limiting size of the pool proportionally to s)