STP.02 was approved by the Songbird community in February 2023. This sanctioned the implementation of a second wider reward band for Flare Time Series Oracle data providers on the Songbird canary network.
The objective was to support increased decentralization of the system by increasing the number of data providers that receive rewards and are therefore able to cover their infrastructure costs. A successful implementation would see a greater number of providers being rewarded with no significant negative effect on the accuracy of the provided data.
The secondary FTSO reward band was pushed live on Songbird one month later in March 2023. Flare Analytics Report 02 looks at the effects the new band has had on the Songbird FTSO system. This is a necessary step before potential implementation on Flare. The analysis was performed by comparing the performance of the FTSOs on Flare and Songbird:
- Flare: Single narrow reward band receiving 100% of rewards
- Songbird: Primary narrow reward band receiving 70% of rewards, plus a secondary wider band receiving the remaining 30% of rewards.
The analysis concludes that the addition of the secondary reward band did not have a significant impact on the price quality on Songbird. The quality of the submitted prices on Songbird remained comparable to the quality on Flare during the period of the analysis. In addition, the analysis shows that the introduction of the secondary band increased the percentage of rewarded providers from approximately 25% to 66%. We therefore also conclude that STP.02 will have a positive impact on decentralisation of the FTSO on Songbird.
