REP-54: Network operation rewards distribution adjustment (#54)

``` REP: REP-54 Title: Network operation rewards distribution adjustment Status: Draft Type: Core Created: 1 Dec 2024 Author(s): BruceXC <[email protected]> Description: This REP proposes a new Network operation rewards distribution mechanism Discussions: https://forum.rss3.io/t/rep-network-operation-rewards-distribution-adjustment/223 ```
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diff --git a/README.md b/README.md
@@ -17,6 +17,7 @@ This repository tracks all REPs proposed by the RSS3 Community.
 | [REP-38](./REPs/REP-38.md) | Demotion and Slashing Mechanism                | [Polebug](mailto:[email protected])                                                                                                                                                                                                                                                                       | Core     | Draft  |
 | [REP-40](./REPs/REP-40.md) | Whitepaper Updates                             | [pseudoyu](mailto:[email protected])                                                                                                                                                                                                                                                              | Core     | Final  |
 | [REP-43](./REPs/REP-43.md) | Introducing Payment Processor for Request Fees | [Nya Candy](mailto:[email protected])                                                                                                                                                                                                                                                                    | Core     | Review |
+| [REP-54](./REPs/REP-54.md) | Network Operation Rewards Distribution         | [BruceXC](mailto:[email protected])                                                                                                                                                                                                                                                                 | Core     | Draft  |
 
 ## Submit an REP
 

diff --git a/REPs/REP-54.md b/REPs/REP-54.md
@@ -0,0 +1,81 @@
+```
+REP: REP-54
+Title: Network operation rewards distribution adjustment
+Status: Draft
+Type: Core
+Created: 1 Dec 2024
+Author(s): BruceXC <[email protected]>
+Description: This REP proposes a new Network operation rewards distribution mechanism
+Discussions: https://forum.rss3.io/t/rep-network-operation-rewards-distribution-adjustment/223
+```
+
+# REP-54: Network operation rewards distribution adjustment
+
+## Table of Contents
+
+- [Abstract](#abstract)
+- [Motivation](#motivation)
+- [Specification](#specification)
+- [Rationale](#rationale)
+- [Reference Implementations](#reference-implementations)
+
+## Abstract
+
+This REP proposes to adjust the Network operation rewards distribution mechanism.
+The REP will update the Whitepaper first, and then the rewards distribution mechanism will be adjusted on the Global Indexer accordingly.
+
+## Motivation
+
+The proposed adjustment accounts for various aspects of Node contributions to the network, aiming to optimize the allocation of rewards to Nodes and help cover their operational costs.
+
+## Specification
+
+The current formula is based on various factors reflecting Node contributions to the network. The total score for Node $i$ is defined as $S_i$, calculated using the following formula:
+
+$$
+S_i = W_1 \cdot R_i + W_2 \cdot D_i + W_3 \cdot E_i
+$$
+
+Where:
+
+- $W_1$, $W_2$, $W_3$ are the weights of the three factors, and $W_1 + W_2 + W_3 = 1$.
+- $R_i$ is the request distribution score of Node $i$.
+- $D_i$ is the data indexing score of Node $i$.
+- $E_i$ is the stability score of Node $i$.
+
+$$
+R_i = \frac{\text{validCount}_i}{\max(\text{validCount})} - \alpha \cdot \frac{\text{invalidCount}_i}{\max(\text{invalidCount})}
+$$
+
+where:
+
+- $\text{validCount}_i$ is the valid request count of Node $i$.
+- $\text{invalidCount}_i$ is the potential invalid request count of Node $i$.
+- $\alpha$ is a constant factor, representing the weight of the invalid request count.
+
+$$
+D_i = \beta_1 \cdot \frac{\text{networkCount}_i}{\max(\text{networkCount})} + \beta_2 \cdot \frac{\text{workerCount}_i}{\max(\text{workerCount})} + \beta_3 \cdot \frac{\text{activityCount}_i}{\max(\text{activityCount})}
+$$
+
+where:
+
+- $\text{networkCount}_i$ is the number of supported networks of Node $i$.
+- $\text{workerCount}_i$ is the worker count of Node $i$.
+- $\text{activityCount}_i$ is the activity count of Node $i$.
+- $\beta_1$, $\beta_2$, $\beta_3$ are the weights of the three factors, and $\beta_1 + \beta_2 + \beta_3 = 1$.
+
+$$
+E_i = \gamma_1 \cdot \frac{\text{uptime}_i}{\max(\text{uptime})} + \gamma_2 \cdot \text{versionScore}_i
+$$
+
+where:
+
+- $\text{uptime}_i$ is the continuous uptime of Node $i$.
+- $\text{versionScore}_i = 1$ if the node uses the latest version, otherwise $0$.
+- $\gamma_1$, $\gamma_2$ are the weights of the two factors, and $\gamma_1 + \gamma_2 = 1$.
+
+## Rationale
+
+The core goal of this proposal is to evaluate Node contributions from multiple perspectives to ensure a fair allocation of network operation rewards. This approach enables Node operators to receive Network operation rewards while reducing their operational costs.
+
+## Reference Implementations