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feat: implement effective delegation shares#2

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atheeshp wants to merge 9 commits intorelease/v0.52.xfrom
ap/refactor-vesting-delegations-updated
Draft

feat: implement effective delegation shares#2
atheeshp wants to merge 9 commits intorelease/v0.52.xfrom
ap/refactor-vesting-delegations-updated

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@atheeshp atheeshp commented Nov 6, 2024

Description

This proposal for the Cosmos SDK suggests modifying the staking rewards distribution to account for liquidity risk by differentiating between locked (vesting) and unlocked tokens. The proposed "VestingRewardMultiplier" (VRM) parameter adjusts rewards for locked tokens, allowing stakers who contribute more liquid (unlocked) tokens to earn higher rewards. By setting VRM between 0 and 1 (used 0.3 in this POC), Cosmos can gradually shift reward distribution, potentially incentivizing more liquid staking and aligning network incentives. Considerations include user fairness, computational efficiency, and a smooth migration path for current delegations.

ref: Proposal: Adjusted Staking Rewards Distribution in Cosmos SDK #22001


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