Continuing the discussion from Serious lack of transparency and engagement of Algorand foundation:
There was a question asked by @petew.
What will be the long term incentives for relay nodes?
@stephenfoundation answered this as:
The group sometimes referred to as the Relay Node Runners group, came into existence at mainnet launch and should correctly be referred to as Early Backers and Node Runners. This group consists of early investors, commercial entities and non-profits (Universities) who made commitments to support the project and to also run relay nodes to provide the decentralized infrastructure of the blockchain in the early life of the protocol. This group is committed to support the required Relay Node infrastructure of the Algorand blockchain up to 2024. At this point, some of the current participants may decide to discontinue running Relay Nodes. For now, the Foundation has not yet agreed a long term incentive plan to encourage new Relay Node runners to participate, if required, in 2024. The Foundation will engage with the Algorand community, nearer to that date, to evaluate what potential incentive programs are required to onboard new Relay Node Runners. See also technical question below.
As part of our current roadmap, we plan to further the ability to run Relay Nodes on the Algorand Network. One approach being evaluated is to start by using two lists of relays: the current one fully vetted by the Algorand Foundation to keep the network high performance and a second one that is permissionless. Nodes would then connect to relays on both lists allowing best of best world: decentralization + performance. As we move to a permissionless mechanism for Relay Node Running, the Foundation will work with the community to agree an incentive program to support running this infrastructure.
My questions is more of technical nature.
Having PPoS, how can we incentivise running Relay Nodes in decentralise fashion? It is pretty easy in the case of other PoS protocols. You stake your coins and choose a validator that takes a % cut from your earnings.
I was trying to think about any way of doing that on PPoS, but nothing comes to my mind. I would even say it is impossible without breaking the basic assumptions of PPoS. I would appreciate it if someone could come with a solution or two to enlighten me.