Delegation Feedback Rollup Thread

[indexer_payne]

@Brandon

(Related) It’s unfair that Indexers can change their delegation parameters immediately, but we have to wait 28 days to undelegate.
Indexers have a “cooldown” that determines how often they can change delegation parameters. We considered setting a minimum cooldown here, but decided instead to let the free market determine what cooldowns Indexers set. All other things being equal, we would expect Indexers who set longer cooldowns to receive more delegation.

A huge problem with this, is that the cooldown as a fresh indexer, actually hurts your delegators rewards.
Why? Because once you set a cooldown of X period of days, AND you receive delegations AFTER you set it, you then can’t lower the cuts% to balance out the new delegated stake.
It’s heavily related to your #3 point in that list.

As an example:

• Let’s say you have 1M GRT owned staked, with 1M GRT delegated to you, and a 60% protocol cut (not effective cut). Your effective cut is 20% in this situation. You then proceed to lock your parameters for the next 100 days.
  

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• Now let’s say someone comes in and delegates another 9M GRT to you, leading you to a total of 10M GRT. You locked your parameters before, you can’t lower the protocol cuts to keep the effective cut at a steady rate of 20%. With the new 9M GRT delegated to you, your effective cut now became 56%, lowering the amount your delegators make significantly.
  

Last note on this – I’ve even noticed some indexers taking advantage of this and intentionally locking their protocol parameters to attract delegators that have no clue how to calculate the effective cut %, because “locking your parameters” is heavily emphasized everywhere without any actual context.