Reward Multipliers

Family Bonuses

The Anyone Protocol introduces a sophisticated mechanism called Family Boosts to enhance network security, transparency, and incentivize the declaration of relay families. This section details the rationale, implementation, and impact of Family Boosts within the ecosystem.

Definition and Importance of Family Relay Boosts

• Family Relay Definition: In the Anyone Network, a 'family' of relays refers to multiple relays administered by the same operator. This classification is critical for managing security risks, as undeclared families could compromise the network's integrity by controlling multiple network hops.

• Security and Transparency: Recognizing and declaring relay families is crucial for preventing potential security breaches where multiple hops are controlled by a single entity, thus ensuring the privacy and integrity of routed data. Even well-meaning operators must declare their families, as it minimizes the risk of impact if their relay access is compromised.

Mathematical Construction of Risk

Risk Formula: Let $s$ represent the proportion of the total network's relays that a single family operates, where

$$s=\frac{F}{R}$$

• $F$ is the number of relays in the family

• $R$ is the total number of relays in the ecosystem.

The probability $P(>=2)$ of at least two hops occurring within the same family is given by the formula (see Appendix for mathematical derivation):

$$P(>=2) = s \times (2 - s)$$

This formula, derived from combinatorial probability, estimates the risk of network compromise through relay concentration within a single family

• Example Calculations:

  • For a family owning 5% of the network $s = 0.05$, the probability of two or more hops within this family is approximately 9.75%.

  • As the proportion $s$ increases, the risk escalates, reinforcing the need for higher boosts for larger families to incentivize transparency.

Boost Mechanism

• Boost Calculation: The boost for each family is calculated based on the proportion $s$ of the network they control. A base boost of 0.1% per $s$ value increment of 0.0001 is applied up to $s = 0.05$ (50% Boost); beyond this, the boost increment is reduced to 0.05% per $s$ value until the cap of $s = 0.15$

  (or 100% maximum boost).

• Example: A family controlling 2% of the network $s = 0.02$ would receive a 20% boost. A larger family controlling 8% ($s = 0.08$) would receive a 65% boost, calculated through a tiered boosting mechanism.

Motivations and Justifications

• Incentivizing Declaration: The primary motivation for introducing Family Boosts is to encourage relay operators to declare their family status, thus enhancing network transparency and security. By linking economic incentives to the declaration, operators are more likely to comply with transparency requirements.

• Risk Mitigation: Larger families pose a greater security risk if undisclosed due to their potential to control multiple critical hops. The tiered boost system compensates for this increased risk by offering greater incentives for larger families to declare their status.

• Dynamic Adaptation: The boost system is designed to adapt dynamically to changes in the network size. This adaptive mechanism ensures fairness and maintains incentive alignment across all network participants, regardless of when they joined or how the network has evolved.

Implementation and Sustainability

• Dynamic Boost Adjustments: Family Boosts are adjusted according to the network's growth and the relative size of families within it. This dynamic adjustment helps maintain a balanced and equitable incentive system.

• Option Selection: After considering various implementation strategies, the chosen method ensures that all participants are treated fairly over time, with adjustments in boosts reflecting changes in network size and composition. This approach helps manage potential churn by aligning ongoing incentives with network growth and token value appreciation.

Conclusion

Family Boosts represent a strategic initiative within the Anyone Network to bolster security through transparency while providing substantial incentives for compliance. By mathematically linking the boosts to the risk posed by larger families and adjusting incentives based on network dynamics, the Anyone Protocol ensures a robust, secure, and fair environment for all participants.

Uptime Quality Tiers

An additional reward determinant, initially for hardware relays, is a 'quality tier' score. Initially, 20% of rewards for hardware relays will be determined based on the number of days where a relay is consistently detected as available. As this multi-day streak extends, relays gain up to 3 points that are then normalized against the sum of points earnt by other relays - in effect dedicating a portion of rewards purely to uptime. This leads to a higher incentive for maintaining a stable, even if less performant, relay.