I have discussed with a few people in discord a concept to would promote stake decentralization that also helps attract new delegators to the network.
3rd party wallets such as Exodus or Atomic Wallet have services that allow wallet holders to stake within existing Proof of Stake systems to earn interest while keeping their userbase on their platform. It is likely a matter of time where these start centralize stake through their own efforts to delegate to a single entity (as we have already seen with exchanges).
We could facilitate their goals in a way that helps us also distribute stake amongst a group of ‘current top indexers’ and use it as a launchpad to further promote the graph protocol all while setting a precedent for other protocols to maintain stake decentralization.
As a basic concept I believe this should look like:
The high level logic would essentially answer the question ‘which indexers are providing the most value relative to their size and would provide a suitable return to a delegator using a simplified decision process’.
Let S be total stake (both self stake and delegated)
Let Q be total query fees produced over N period of period of epochs (not query fees claimed but what the consumer actually pays)
Let R be the rate of return for the delegator (1 - Effective Cut %)
With P being the resulting point score to determine highest proportional producers.
P = S / Q * R
Gather the top 10/20 indexers with the largest point system and randomly select one to receive the delegation.
The algorithm must be open source for all indexers to understand and must reward productivity
Part of the utility that the network ‘buys’ from a delegator is forcing them to make a choice with the assumption that they chose a quality indexer.
Response: Delegators will still have all existing options when selecting an indexer. However if we enable this functionality, the network would benefit by promoting decentralization of delegation and steering them towards indexers most deserving of additional support as well as adding additional avenues for people to discover the graph protocol.