How GEN locking will work, as far as I know (Math warning, skip to the second section for takeaways!)
GEN locking will be enabled in Genesis with a new scheme, added via proposal in the Scheme Registrar.
Once GEN locking is active, the new scheme will start tracking GEN-locking periods of [1 month].
At any time, anyone can lock any amount of GEN for up to  periods. For example, I can lock 10,000 GEN for 10 periods. I will be able to get my 10,000 back after 10 periods have passed.
At the end of each period, GEN lockers are each given a score,
S = N x T, where
Nis the number of locked periods left and
Tis the number of tokens they have locked.
Also at the end of each period
n, the scheme will distribute
Rreputation to people proportionally to their score
-1 < a < 1. This means that each period, each GEN locker will get Reputation proportional to the amount of GEN they have locked and how much future time it is locked for.
Key note: The
R_0parameter controls the total amount of Reputation distributed through the entire lifetime of the locking scheme.
- A given user can extend their lock, so if they locked 1000 GEN for 3 months, they can wait 2 months and then relock that GEN for another 10 months without unlocking it.
- They can also create additional GEN locks, so one user could have 1000 GEN locked for 3 months and another 2000 GEN locked for 5 months simultaneously.
- The GEN-locking scheme can run for a large number of periods, say .
[Brackets] denote params that the DAO can set for the locking scheme.
What current Genesis members should know
The DAO has complete control of how much plutocracy is created. In deciding the locking scheme parameters, we can decide the total amount of Reputation that can get distributed to lockers. This is because the equation controlling how much Reputation is distributed each period is a convergent geometric series: even with infinite periods, the total Reputation distributed will stay below a specified limit. In this case, that limit is
R_0/(1-a). For example, let’s say we don’t want GEN lockers to receive more than 50% of the Reputation held by current members (~50,000): we could set
Tech team, please correct any mistakes here! Sorry if I butchered anything.