Hive Hardfork 28 change that might cause you not to use your layer 2 stake optimally.

Hive Hardfork 28 change that might cause you not to use your layer 2 stake optimally.

In my last post, I talked about the reduction of the max vote value by 12.5% in terms of Hive or vesting's. This triggered the further questions is that we are earning less in curation after Hardfork 28? I was not able to answer it as really got little sick after writing that post and need rest and was not much feeling energized to reply on it. Actual answer to that question was also not straightforward because it depended largely on your voting habits.

My thinking says that if someone were disciplined enough to cast every vote when there voting mana is above 87.5%, they are losing curation rewards, But if someone who is casting every vote below 87.5% of voting mana is actually observing the more curation rewards now. This absurd behavior is due to fixed vote value now, irrespective of voting mana in current scenario. While in old scenario, your voting mana was also determining the vote value.

Source

For Example, let say my full vote value vesting was of 2 Hive before Hardfork 28. If my voting mana is 80% then my full vote will yield (80/100)*2Hive =1.6 Hive and make curation reward of .8 Hive in ideal scenario. In same case if my voting mana is 95% then it will yield (95/100)*2/2= .95 Hive as curation reward. But in current system , my full vote value is reduced to 1.75 Hive, but irrespective of voting mana, it will yeild 1.75/2 = .875 Hive as curation reward. Now you can see that .95 >.875 but .875 > .8 . So your change in curation rewards, whether an increase or a reduction was largely dependent on voting habits in my opinion.

And still above calculation is flawed because voting mana was also not a linear function earlier. If you vote at 100% voting mana with 100% vote, you lose 2% of voting mana but if you vote at 90% voting mana with 100% vote, you did not lose 2% of voting mana and to me it look the issue that how Hive layer 2 voting mana ,now going to start to differ with Hive or Hive layer 1.

How Hive hardfork 28 is impacting Hive layer 2.

We all know Hive layer 2 is not an official integration. So any changes that are performed on the Hive code block, do not automatically propagate to Hive second layer. To mimic the changes perfomed on Hive, Hive-Engine team need to mimic the same change in the Hive Second layer codebase.

Hive Hardfork 28, fixed one more issue, Now every 100% vote , reduce your voting mana by 2%. But in the earlier scenario, less your voting mana, reduction in voting mana is not proper 2% for 100% vote. Instead, your voting decrease somewhat less than 2% . So if you are 100% of voting mana and cast 10 votes at one go, You will observe that your Hive voting mana will be 80% but your tribe voting mana will be now 81.66% i.e difference of only 1.66% and look manageable.

Source

But what will happen, if you go for 20 votes from 100% voting mana? I observed that Hive voting mana drop to 60% but what about layer 2? it shows me around 66.72% (or may be 66.5% because tribe interface are too buddy to load instantly.) so this is almost more than 6.5% gap in 20 votes

Source I guess. If we keep voting, with time, your Hive voting mana might drop to 0 that will not allow you to vote, but your Hive layer 2 voting mana will be some good number. Since you do not have enough mana in layer 1 itself, so I do not think you will be able to vote for your layer 2 stake.

Mitigation.

Best option is to fix the layer 2 in same way as layer 1 but it will incur development cost. I am not sure who will be incurring this cost i.e tribe or Hive-Engine developers. Also tribes token performance is overall dismal with most of them already closed, I am not sure if there is any "interested" parties to get this change done.

Another approach I can suggest, that do not overvote in a single day, keep your voting mana on upside of 90% before voting and do not go below 80%. This will still cause the issue but prolong your timeline to hit this issue.

Hope to see you soon, if I am able to analyse something further and have more to share on future.