This is more like a question to @thibauld as the author of the whitepaper.
The dividends mechanism described runs as the following (correct me if I’m wrong):
- the COrg buys some new FAIRs which are then distributed to all holders
- the total amount of ETH used in this transaction goes to the reserve fund.
I was wondering if the following could be another way to distribute dividends, which seems conceptually simpler to me:
- don’t increase the FAIR supply
- simply increase the reserve fund by funnelling ETH to it.
It seems that this version would increase the s slope a bit more (after doing some calculation). But more importantly it would increase the “whole” slope from 0 to x(after dividends), whereas the suggested version would only modify the slope from x(before dividends) to x(after dividends).