Miner P Score vs PHA Rewards Comparison

I have 2 miners currently mining successfully.

Miner 1:
2 core
P instant = 535
Confidence level = 2
Smax = ~19800 PHA
Stake = 19300 PHA
Mining Rewards = 0.823 PHA per hour

Miner 2:
8 core
P instant = 2659
Confidence level = 4
Smax = ~19800 PHA
Stake = 20315 PHA
Mining Rewards = 0.941 PHA per hour

Both have similar processors. It appears that the both get similar mining rewards. Why would this be the case? Shouldn’t the 8 core get roughly 4 times the rewards? Both has a similar Smax of around 19000 PHA. I understand that the 8 core would get -20% rewards due to is confidence level of 4 but why similar rewards overall? Is this by design? Does Phala Network discourage higher P score miners?

Max stake calculation - Can the Phala team please provide the formula for calculating the miner max stake (Smax)? The tokenomics link doesn’t have anything on this important topic - Understand Phala Tokenomics | Phala Network Wiki

Note: I did not try staking a higher amount to miner 2 despite the similar Smax. Now I am starting to wonder if it can have a much higher stake than 20.3K PHA, for example 4x more stake than miner 1. I think it would be nice to have a very clear indicator of how much maximum stake each miner can have in the UI.

Got some nice chat in the developer group. Let me add some quotes here:

There are a few factors affect the reward and V. V increases unconditionally. But each payout event will reduce V by the amount of the payout.

…Then V increases at the speed propotionally to V itself (exponential function), when there’s no payout. However when payout happens, the other factors kick in

If you got higher score, the payout will be higher, causing a bigger reduce of V. It’s a bit counterintuitive, but with the same V, the higher the score, the slower V increases. However you get more payout

So in a long run, more performant miner still get more reward in the end

But their V increases a bit slower

Indeed the stake is the main factor that influnces Ve. However 2x Ve doesn’t mean 2x payout

This one has huge impact

At any time slot, you can get the reward of the block proportionally to the “share”, which is roughly a weighted average of V and the performance score

And the contribution of V and performance score is in the same order of magnitude, unless you stake too much

This is interesting because it basically implies if you have some money and you can invest in either the hardware or stake, the former one will be more profitable than the later one. Basically: profit of more hardware with minimal stake > profit of less hardware with more stake

In this formula, if you only start with minimum stake, Vt and 2*Pt will be at the roughly same scale

However if you stake much more than the minimum stake, then Vt >> 2*Pt

Then your performance score doesn’t give a huge impact compared with the stake

Btw, I’ve just fixed the wiki tokenomic page by adding Vmax: Understand Phala Tokenomics | Phala Network Wiki

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This is all great, but it would still be awesome to know how to calculate sMax

1 Get tokenomics params:
api query phalaMining::tokenomicParameters()

  phaRate: 12,303,978,297,164,270,928
  rho: 18,446,756,370,313,412,349
  budgetPerBlock: 116,733,302,341,443,256,320
  vMax: 553,402,322,211,286,548,480,000
  costK: 437,391,350,309
  costB: 932,334,194,078,877
  slashRate: 0
  treasuryRatio: 3,689,348,814,741,910,323
  heartbeatWindow: 20
  rigK: 8,296,886,389,974,309,947
  rigB: 0
  re: 27,670,116,110,564,327,424
  k: 922,337,203,685,477,580,800
  kappa: 18,446,744,073,709,551,616

All values above are encoded decimals. In order to decode you need to divide it by 2^64
For example
k = 922337203685477580800 / 2^64 = 50

2 Calculate sMin and sMax

sMin = k * sqrt(initialScore)
sMax = vMax / ((re - 1) * confidenceScore + 1) - (initialScore * 0.3 / phaRate)

confidenceScore is 1 for 1-3 confidence level, 0.8 and 0.7 for 4 and 5 levels