Payment

As mentioned earlier, the user who actually provides the data incurs a higher cost than a user who only endorses data. This is reflected in the payout system as a bonus for the user who brings the consensus data on chain for each dataset. All pay computations start with the PayRate as computed in the Cost Computation section above. The general idea is that the data provider gets a little extra and the endorsers get a little less. For example, say there is a dataset requested with a required lead of 6. This means there is one provider and five endorsers initially required. If the gas bonus percentage is 10%, then the provider receives

$$ProviderPayRate = PayRate + PayRate * 10\%\\ \hspace{2.9cm}= PayRate + PayRate * 0.10\\ \hspace{1.06cm}= 1.10 * PayRate\\ \hspace{1.25cm}= 110\% * PayRate$$

as compensation while the extra PayRate * 0.10 is “covered by the endorsers” (not really covered by them, but it’s a convenient way to think about it for computation). This means that the endorsers receive

$$EndorserPayRate = PayRate - PayRate * \frac{10\%}{5}\\ \hspace{2.74cm}= PayRate - PayRate * 2\%\\ \hspace{2.88cm}= PayRate - PayRate * 0.02\\ \hspace{1.06cm}=0.98 * PayRate\\ \hspace{1.06cm}= 98\% * PayRate\\$$

Since the effect is amortized across all of the endorsers the deviation from the base pay rate is much smaller for the endorsers and the increase in cost, difficulty, and pressure to get the data correct borne by the data provider is rewarded with a small bonus.