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Payout strategies (#41)

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* Paraphase balanced payout strategy description

Original description was confusing if you looked at it from a math point
of view since you can not compute the difference of XP and SEEDs
directly. Instead XP is converted to expected SEEDs and then we do some
computations based on this.

* Paraphrase reasoning for combination of payout strategies
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visionactor
2020-06-17 03:34:01 +02:00
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@@ -52,14 +52,14 @@ Explanation of what they are, why they matter, and how they work goes here.
#### Payout Strategies
There are 2 main strategies for SourceCred payouts:
- **Balanced:** looks at everyone's total lifetime XP, and will payout the dif between the person's XP/SEEDs (incentivizes exploration of new things that might not be immediately obvious).
- **Balanced:** makes sure that everyone's total lifetime payed-out SEEDs matches everyone's total lifetime XP (incentivizes exploration of new things that might not be immediately obvious).
- **Immediate:** proportional amount of XP you created that week (incentivizes exploitation of current rewards).
SourceCred uses an 80/20 strategy for Grain distributions (their version of XP):
- 80% from the balanced payout system
- 20% from the immediate payout system.
It's important to have both. If you only use balanced it would also create immediate rewards because new payouts have a huge delta between SEEDs (0) and XP (X), but... if there's a slow week those who keep contributing would actually get less XP in the future as more people start to contribute (probably due to the efforts of the people who contributed when no one was around). We need to incentivize people to contribute all the time, esp when no one else is contributing, so we need the immediate payouts as well. If we have both "balanced and immediate" payouts then people will get a bonus for contributing when no one else does.
It's important to have both. The balanced payout rewards people for their lifetime investment / contribution. The immediate payout rewards people to keep contributing continuously. Especially in slow weeks when no one else is contributing the immediate reward is high for those who nevertheless keep contributing and results in a bonus for them.
### SEEDs