Question about Witness Rewards

in busy •  3 months ago

I noticed, that I get more rewards for the blocks, that I get to sign as a witness for Steem. When I set up the node, I read some posts about these rewards, and how block production rewards will decrease over time.

I made a quick script to look at all producer_rewards I ever got on the Steem blockchain.

This is the result as a graph:

image.png

Please note that I looked at the producer rewards, per block !
On days, where I got more blocks, the bars appear thicker, but are not higher !

What mechanism, parameters influences these rewards ?

I know, most people expect a witness to be able to read Steem's codebase to such a level, that they can figure these things out.

This seems to be the relevant variable:

"STEEM_PRODUCER_APR_PERCENT": 750

https://github.com/steemit/steem/blob/306e63b771295558e9ce3a1da476e708b5903c27/libraries/protocol/include/steem/protocol/config.hpp#L20

And this is how it is being used:

asset percent( protocol::calc_percent_reward_per_block< STEEM_PRODUCER_APR_PERCENT >( props.virtual_supply.amount ), STEEM_SYMBOL);

https://github.com/steemit/steem/blob/ca1d3ac228145276b54e3d805f1d4eb0b27e4517/libraries/chain/database.cpp#L2127

virtual_supply.amount should increase every day.
STEEM_PRODUCER_APR_PERCENT from what I understand this is the inflation rate for producer_rewards, and I have been told that others Steem inflation rates decrease over time.

I do not really understand how that works.

I had assumed, that the inflation rate parameter decreases faster than the virtual supply; I thought producer rewards get less over time.

Steem has a maximum supply.
I do not understand how that will work, when rewards are increasing.

Should rewards not decrease and go toward 0, the closer the virtual_supply gets to the max_supply ?

I am curious.

Edit:

Steem has no maximum supply.
https://steemit.com/steem-inflation/@fyrstikken/what-is-the-inflation-rate-of-steem-here-is-the-supply-table-for-the-next-20-years

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I'll try to get @holger80 in here with that mention. I guess he will be able to answer this for you :))) (at least he already answered many similar questions already for me)

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https://steemit.com/steem-inflation/@fyrstikken/what-is-the-inflation-rate-of-steem-here-is-the-supply-table-for-the-next-20-years shows that new supply increases the first six years and will then decreasing. The producer reward will go down after 2022.

Sorry, i cannot help here :(

I wonder if tagging steemdev would attract a couple of eyes who could though?

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I did not dare tagging #witness-category :D

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:O

You did now!

I will paste the post link in the utopian development discord too..

I dont quite understand any of this lol but im trying .

I really don't understand a thing about your question. Net first I try to recap it a little.

So you are a witness and you don't know why your witness rewards have increased over time?

Is that's correctly recapped, how on earth do you think we as none witnesses would know the answer?

By the way how much Steem resend a witness on a yearly basis?

And what is the maximum supply of Steem? And in which century will we reach this maximum supply?

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Since writing the post, I found out, that I made some wrong assumptions.

@felixxx, Great to know that you are Witness and also your posts reflects that you are active in Steem Economy for sure. And in my opinion we need more Active Witnesses so that our bench of Witnesses will be strong.

Good to know this Self Analysis report and your Block Rewards chart. And in my opinion these kind of reports are really important because over the time mechanisms get change in an Economy.

And in my opinion to support witnesses we have to spread the knowledge of Witness System because in that way every Steemian will get to know that they have the right to vote Witnesses and in that way Steemians can vote for more potential witnesses.

And in my opinion in this phase of time many don't know about the Witness System and in my opinion in a way it's an Negative aspect and that should be changed for sure to improve the economy to more extent.

Wishing you an great day and stay blessed. 🙂

Maybe @jga would have an insight ? Anyway, I'm impressed by this blockchain. I believe good things are necessarily complex and demand hard work to understand. And this here is some complex code with more than one layer of abstraction ... Hat off to its architect.

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Hi @felixxx, you are looking the wrong part of the code.

STEEM_PRODUCER_APR_PERCENTis used in the function get_producer_reward(), which was deprecated after Hard Fork 0.16.

The producer_rewardis calculated in this part of the code. That is, the 10% of the actual inflation and weighted in this way:
producer_reward = new_steem_for_witnesses * Witness_type * 21 / ( 1*num_elected + 1*num_miners + 5*num_timeshare )

Where Witness_type=1 for top19 or miner, or Witness_type=5for the rest of witnesses.

In other words, each round has 21 witnesses, the top 19 is always here and have a weight of 1. The other 2 witnesses are selected from the rest and have a weight of 5 to compensate their low income.

The more near you are from the top 19 the more rewards you will get. Maybe you have more votes than last year and this is the reason you have more vests per block.

I have been told that others Steem inflation rates decrease over time.

Looking at your graph I see that in small periods of time the rewards tend to decrease. I think this is a consequence of decreasing the inflation, added to the fact that STEEM_PER_MVESTS increase over time.