Increase of efficiency

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Alistair McLeay

RewardChain
Sorry to see this change but I completely understand. Would you mind sharing why you are decreasing development contributions for the foreseeable future? Thanks Paul.
 
Hi Paul. Just for me to understand how this efficiency thing works. So previously 40% of your ANO rewards were sent back to the ecosystem, while now it will be 50%. Meaning the rewards you keep are declining from 60% to 50% which means a reduction of roughly 15%. Are you then saying you reduce the time you work on Factom Protocol with 15% as well in order to create time for your career? So you keep spending 85% of your previous allocated time on development? Is this how I should read it?
 
At these prices, ANO rewards mostly or entirely pay for physical infrastructure. Rewards also need to pay for the cost of a sysadmin being on call 24/7, in addition to the general costs of running a business such as accountancy and taxation. So, in this instance, the percentage drop in rewards allocated to development labour is much larger than 15%. The exact percentage will depends on Paul's business expenses and how much he is charging for his sysadmin labour, but could be anywhere up to 100%.
 
On top of Alex answer:
-note that there are notable thresholds in the efficiency scale. For instance there is the historically accepted 60% efficiency to be consider infrastructure ANO which then may not be required to provide additional work other than running their infrastructure and voting on governance matter.
-to be frank I am not yet able to exactly evaluate the impact on my contributions, but I know it will be less, so I decided to start reducing our efficiency right now. I may reevaluate soon enough.
-in the end efficiency is one variable of the standing system, which is a "social game", so things are less arithmetic than you could expect.
 
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