## About this project

- It is possible to adjust the issuance of Respect to change the incentive system of Optimism Fractal. For example, here are a couple articles from the Genesis Fractal that explain a system with a exponential inflationary decay:

- During Meeting 18, we discussed the following ideas that might be worth considering as adjustments to the issuance of Respect:

I recommend allocating Respect in a the Fibonacci ratio allocate Respect and starting at 5, which is the 5th index in the Fibonacci sequence. This means that if there are 6 participants who reach consensus in a group then they’ll receive 5, 8, 13, 21, 34, and 55 Respect.

I like the fibonacci ratio for the reasons described in the fractally whitepaper and the fact that is provides a good Schelling Point. You could start it at a lower or higher index in the fibonacci sequence (and starting at a higher index could create a slightly more consistent percentage increase between levels), but I recommend allocating 5 to the lowest rank and 55 to the highest rank because this provides a relatively consistent percentage increase between levels while providing simple, easy numbers to remember.

We distribute Respect in the 5-55 ratio at both Optimism Fractal and Eden Fractal, so that’s how it’s currently configured in the software. This has worked well in practice and means that participants can earn approximately 60% more Respect with each level. This is the simplest to implement and I think it’s the best, but if you have some other ideas in mind then I think it’d be fairly easy to configure. Eventually it might also be a good idea to use a novel issuance curve like the Genesis Fractal did, but that makes things a lot more complex and can be added retroactively at any time in the future if/when it makes sense.