So if the amount of work a reporter has to do each reporting period is not proportional to the amount of REP staked but on a per account basis wouldn't that mean as the system grows and there's more and more work to be done for reporters staking small amounts wouldn't be feasible?

Why was it designed that way and is it planned to switch this as the system gets bigger and bigger? Shouldn't the aim be to have an as wide spread and distributed reporters set as possible? If that's an intended goal the current setting seems counterproductive to me.

up vote 4 down vote accepted

Decentralization is a means to an end, it is not a goal in and of itself. What is a goal is censorship resistance. The way the system is designed is that as long as at least 1.25% of REP is held by honest participants the system can ensure that attacks are not profitable.

Having a wide reporter base dose not increase the security of the system significantly, so it is not a target for the system.

  • Ok gotcha. I'm all for not trying to achieve some unrealistic and pure state of decentralization - had enough of this from core. Still from a REP Holders economic perspective: Wouldn't REP achieve a higher value if it has utility for as many people as possible? In the current design it only has utility for a few people that happen to have enough of it. – tobi Sep 1 '17 at 9:26
  • REP's price is targeted to be stable relative to Augur open interest. Because of this, any changes in reporting requirements wouldn't change the price. – Micah Zoltu Sep 2 '17 at 0:10
  • Expected that answer :) - My argument would be: Tokens are more than just dividend generating things. Tokens align interests - tokens make one identify with a product/company - feel part of something. The more users have that feeling by holding REP and generating some payouts - the more people will actively promote and use the platform. So having as many natural persons as possible hold and benefit from REP increases the potential open interest on the platform. – tobi Sep 3 '17 at 14:02
  • Stack Exchange isn't really the right forum to have a protracted discussion. I recommend popping into Augur Slack or Reddit if you want to discuss the proposed value of many shareholders. I do have thoughts on the matter but SE isn't the right place for such a discussion. – Micah Zoltu Sep 3 '17 at 18:31
  • I guess you're right, posted it on /r/augur – tobi Sep 3 '17 at 22:10

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