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Comparative optimality of larger committees under convex costs beyond the 3-vs-1 case

Determine whether, under convex cost functions c(x), committees of size k″ are better than committees of size k′ for k″ > k′ > 3 in terms of the success probability succ achieved by symmetric efforts subject to the budget constraint. Specifically, characterize for general convex c(x) and budget B whether succ(x*(k″), k″) ≥ succ(x*(k′), k′), where x*(k) is the optimal symmetric effort satisfying k·c(x*(k)) = B.

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Background

In the convex cost regime, the authors show that whether three DReps outperform one DRep depends on both the budget and the exponent in power-law costs c(x) = xβ (Theorem th_three-vs-one), illustrating that larger committees are not uniformly better. Extending this comparison to larger committee sizes requires handling many combinatorial outcome events.

The authors explicitly note that generalizing the 3-vs-1 comparison to k″ vs. k′ > 3 is complex and leave it as an open problem, emphasizing the need for a broader characterization of when larger committees yield higher success probability under convex costs.

References

Even generalizing Theorem \ref{th_three-vs-one}, to understand e.g. if k'' DReps are better than k' DReps for k'' > k' >3, leads to a more complex analysis, since one needs to account for all the different probability events that can lead to the correct outcome. We leave this as an interesting open problem for future work.

Reward Schemes and Committee Sizes in Proof of Stake Governance (2406.10525 - Birmpas et al., 15 Jun 2024) in End of Section 5.4 (Convex case: The budget matters for the optimal number of DReps)