|107||Burning a DAO-adjustable proportion of the storage collateral||Ming Wu, [email protected], Chenxing Li, [email protected]||Draft||Spec Breaking||2023-02-06|
When a sponsor add storage collateral for a contract, a proportion of the CFX tokens will be burned and corresponding amount of “storage point” will be mint. The “storage point” cannot be transferred and will not generate storage interest. But it can pay for storage collateral as CFX tokens.
This CIP mainly introduces the storage point, which is mint from the burn of storage collateral. When a sponsor initiate or append the sponsor balance for collateral, p proportional of the balance will be burned and be converted to the “storage points”. Currently, 1 CFX worth 1 KB storage collateral. So in this mechanism, for each 1 CFX burned, 1024 storage points will be generated. When sponsoring a transaction, the
sponsor_balance_for_collateral will be deducted. If the rest
sponsor_balance_for_collateral cannot afford the incremental storage collateral, the contract will use the storage point instead. When replacing the sponsor for the storage collateral, the storage points will not be refunded to the old sponsor. If the new sponsor provides more storage collateral than the old sponsor, p proportional of the surplus will be converted to the storage points.
p is initialized as 0.5, and will be adjusted by DAO. When this CIP is activated, half of sponsor balance for collateral will be converted to the storage points. The conversion of storage collateral for existing contracts will be processed lazily.
This is to introduce some burning scenarios and mechanisms to mitigate the continuous inflation of CFX tokens. This will improve the tokenomics of Conflux.
The design of storage point minimizes the influence of the economics. Currently, the contract sponsors mainly care abount how many tokens are required to support their business plan. But they do not care about the refund of storage collaterals. This CIP does not introduce additional cost for the storage collateral, except some of the tokens are converted to the storage points perpetually. The storage interest per block is only 0.002 CFX, which is much smaller than the base reward. So this CIP also has minor influcence for miners.
The voting of propotion
We introduce a parameter
STORAGE_POINT_PORP with 18 decimals initialized by
1. The propotion of p is defined by
STORAGE_POINT_PORP / (STORAGE_POINT_PORP + 1). For example, if in the first voting period, all the votes agree to increase the
STORAGE_POINT_PORP will become
2 and p equals to 67%.
The statistics of token supply
When the sponsor balance for collateral is converted to the storage points, corresponding CFX tokens will be deducted from
This change is spec breaking.
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