December 2023 reward allocation questions

General
1

We noticed three issues with the December reward calculation.

  1. For the legacy KEEP stakers who undelegated their stake, the rewards dropped significantly. It seems that the undelegating KEEP is not taken into account when calculating the stake weight. Based on the TIP-063, we would expect the stakers to receive rewards based on their latest stake weight for the duration of the grace period. Will stakers be retroactively compensated after they complete the transition from KEEP to T?

  2. The stakers who have only PRE nodes running received 0 rewards. The TACo launch announcement on December 19 said that PRE nodes will no longer be compensated from Jan 1st, 2024. We expected PRE nodes to be compensated until December 31st, or at least until December 19th. There was very little time between the launch and the Holiday break to authorize and set up nodes for stakers.

  3. Related to 1 but it seems that the undelegating KEEP is not considered for PRE/TACo reward calculation as well.

2

Thanks for bringing attention to these questions. It’s important that we provide enough clarification to all stakers.

The issues that you mention are expected since legacy KEEP stakers have a 60-day undelegation period on the KEEP staking contract side, and it is not possible to ensure that they will follow the transition process. It is important to avoid a scenario where rewards are issued to a legacy staker, and in the end they take the KEEP tokens after the 60-day undelegation period and leave without transitioning. Having said that, once a legacy KEEP staker completes the transition process, they will receive retroactively in the next distribution any pending rewards.

Note that the same criteria was applied to legacy NU stakers, and they didn’t receive any rewards for the period between Nov 22nd and Dec 1st (since the deadline for them was Dec 7th), but these rewards were retroactively issued on Jan 1st distribution to those that completed the transition process (btw, not all legacy NU stakers completed the process). The difference with respect to legacy KEEP stakers is that the NU staking contract has no delay, so the uncertainty period was shorter.

1 Like