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Reward Sharing Schemes for Stake Pools by Brünjes, Lars; Kiayias, Aggelos; Koutsoupias, Elias; Stouka, Aikaterini-Panagiota is a scholarly article available to read on EtoBox.

What is Reward Sharing Schemes for Stake Pools about?

We introduce and study reward sharing schemes (RSS) that promote the fair formation of {\em stake pools}\ in collaborative projects that involve a large number of stakeholders such as the maintenance of a proof-of-stake (PoS) blockchain. Our mechanisms are parameterized by a target value for the desired number of pools. We show that by properly incentivizing participants, the desired number of stake pools is a Nash equilibrium arising from rational play. Our equilibria also exhibit an efficiency / security tradeoff via a parameter that calibrates between including pools with the smallest cost and providing protection against Sybil attacks, the setting where a single stakeholder creates a large number of pools in the hopes to dominate the collaborative project. We then describe how RSS can be deployed in the PoS setting, mitigating a number of potential deployment attacks and protocol deviations that include censoring transactions, performing Sybil attacks with the objective to control the majority of stake, lying about the actual cost and others. Finally, we experimentally demonstrate fast convergence to equilibria in dynamic environments where players react to each other's strateg

Author

Brünjes, Lars; Kiayias, Aggelos; Koutsoupias, Elias; Stouka, Aikaterini-Panagiota

Published

2018

Language

EN