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Update documentation wrt. epoch rewards fractions #2182

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Expand Up @@ -2,4 +2,4 @@

The Carbon Offsetting Fund provides for making the infrastructure of the Celo platform carbon-neutral, by making a transfer every epoch to an organization that commits to using those assets off-chain for carbon offsetting projects.

Through the on-chain governance process, Celo Gold holders can set an on-target carbon offset amount, and the address of a carbon offsetting partner to which to direct these transfers. The on-target amount is adjusted by the epoch [rewards mulitplier](epoch-rewards.md), as with all epoch rewards.
Through the [on-chain governance process](../governance.md), Celo Gold holders can set the fraction of the total desired epoch rewards, initially planned to be 0.5%, that is received by the carbon offsetting fund, and the address of a carbon offsetting partner to which to direct these transfers. The on-target amount is adjusted by the epoch [rewards mulitplier](epoch-rewards.md), as with all epoch rewards.
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Expand Up @@ -4,12 +4,12 @@ The Community Fund provides for general upkeep of the Celo platform. Celo Gold h

The Community Fund receives assets from three sources:

- The Community Fund obtains a desired epoch payment defined as a fraction of the total desired epoch rewards \(governable, initially planned to be $$25\%$$\). This amount is subject to adjustment up or down in the event of under- or over-spending against the epoch rewards target schedule. It may also be reduced to [bolster the Reserve](#bolster-reserve).
- The Community Fund obtains a desired epoch reward defined as a fraction of the total desired epoch rewards \(governable, initially planned to be $$25\%$$\). This amount is subject to adjustment up or down in the event of under- or over-spending against the epoch rewards target schedule. The Community Fund epoch rewards may be redirected to [bolster the Reserve](#bolster-reserve).

- The Community Fund is the default destination for slashed assets.

- The Community Fund also receives the 'base' portion of [transaction fees](../transactions/gas-pricing.md).

## <a name="bolster-reserve"></a>Bolstering the Reserve

The reserve automatically receives a fraction of the desired epoch payments to the Community Fund during times in which the reserve ratio \(the ratio of reserve value over stablecoin market capitalization\) is below a predefined target schedule. The size of the epoch payment to the reserve is calculated based on a half-life calculation to bring the reserve back to its target level. The reserve ratio target schedule as well as the half-life period \(initially planned to be 10 years\) are governable.
The rewards to the Community Fund are automatically redirected to the reserve during times in which the reserve ratio \(the ratio of reserve value over stablecoin market capitalization\) is below a cutoff value. This cutoff reduces from two to one over the first of 25 years in a linear fashion and remains at one afterwards.