Some clarification on a few of the more complicated points in the proposal for the DIGG distribution detailed here:
BIP 14: Digg Distribution Overview
We are applying 1.75 root to all earned badger when comparing earned rewards. This was done to give a larger proportional distribution to smaller addresses relative to the larger ones (whales).
Just using the root though led to addresses that had only even earned 1 BADGER to receive hundreds of dollars worth of DIGG. This created an attack vector where someone could spread badger around to a large number of addresses and reap a large portion of the reward. A pure minimum on amount of badger earned would have disadvantaged small addresses so we decided to go with a limit on the amount of benefit any on address gets from the root based calculation relative to a linear calculation.
The multiplier cap is based on what an address would have gotten in a linear distribution. So lets say a small address would have gotten .0001% of the total in a linear drop. When adjusting using the 1.75 root this number jumped to .002% a 20x increase. With the multiplier cap the final % for distribution will be closer to .0007%. The address is still in the group of addresses getting the MOST benefit from the root approach but not disproportionately so such that its beneficial for a whale to spread across hundreds of small addresses.
The below sheet goes through the different scenarios - linear, root and root with multiplier cap.
https://s3-us-west-2.amazonaws.com/secure.notion-static.com/ace24e19-ce3f-496b-b24c-0c855a4a0af3/BADGER__DIGG_v2_Emissions_Modeling.pdf
There was a strong sentiment from the community when we started taking feedback on DIGG drop strategy that those that have been staking BADGER and BADGER LP be rewarded more relative compared to the farm+dump crowd. To address this we proposed 35% of the drop go only to addresses above some ratio of stake days to total badger earned.
Stake Days are just how much badger you have been staking per day since inception. 1 BADGER staked 1 day = 1 stakeday. we have incorporated LP staking as well and doubled the impact to account for the WBTC side of the pool.
You can see your stakedays here: https://explore.duneanalytics.com/queries/15898/source#31998
follow these instructions if you don't want to page through
The ratio itself is somewhat arbitrary but works as a relative measure of how committed of a badger supporter an address is. An address that has earned 1000 BADGER will need to have staked a lot more BADGER and for longer than someone that has only earned 10 to be eligible for this portion of the drop.
I will be putting forward a proposal soon to make the ratio cutoff for this portion of the drop = 2.