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docs/cip/README.md

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@@ -52,7 +52,7 @@ The semi-sequential nature of block propagation in Ouroboros Praos, where blocks
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To transcend these inherent scaling barriers and unlock the latent capacity of the Cardano network, a fundamental evolution of the core consensus algorithm is imperative. Ouroboros Leios represents a departure from the sequential processing model of Praos, aiming to introduce mechanisms for parallel transaction processing and more efficient aggregation of transaction data. By reorganizing how transactions are proposed, validated, and ultimately recorded on the blockchain, this protocol upgrade seeks to achieve a substantial increase in the network's overall throughput, enabling it to handle a significantly greater volume of transactions within a given timeframe.
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The Cardano Problem Statement [CPS-18 Greater Transaction Throughput](https://github.com/cardano-foundation/CIPs/blob/master/CPS-0018/README.md) further motivates the need for higher transaction throughput and marshals quantitative evidence of existing mainnet bottlenecks. Realizing higher transaction rates is also necessary for long-term Cardano techo-economic viability as rewards contributions from the Reserve pot diminish: fees from more transactions will be needed to make up that deficit and keep sound the finances of stakepool operations. (Currently, the Reserve contributes more than 85% of the reward of a typical epoch, with less than 15% of the reward coming from the collection of transaction fees. In five years, however, the Reserve contribution will be much diminished.) Because a major protocol upgrade like Leios will take significant time to implement, test, and audit, it is important to began implementation well before transaction demand on mainnet exceeds the capabilities of Ouroboros Praos. The plot below shows the historically diminishing rewards and a forecast of their continued reduction: the forecast is mildly uncertain because the future pattern of staking behavior, transaction fees, and node efficiency might vary considerably.
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The Cardano Problem Statement [CPS-18 Greater Transaction Throughput](https://github.com/cardano-foundation/CIPs/blob/master/CPS-0018/README.md) further motivates the need for higher transaction throughput and marshals quantitative evidence of existing mainnet bottlenecks. Realizing higher transaction rates is also necessary for long-term Cardano techno-economic viability as rewards contributions from the Reserve pot diminish: fees from more transactions will be needed to make up that deficit and keep sound the finances of stakepool operations. (Currently, the Reserve contributes more than 85% of the reward of a typical epoch, with less than 15% of the reward coming from the collection of transaction fees. In five years, however, the Reserve contribution will be much diminished.) Because a major protocol upgrade like Leios will take significant time to implement, test, and audit, it is important to began implementation well before transaction demand on mainnet exceeds the capabilities of Ouroboros Praos. The plot below shows the historically diminishing rewards and a forecast of their continued reduction: the forecast is mildly uncertain because the future pattern of staking behavior, transaction fees, and node efficiency might vary considerably.
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![Forecast of rewards on Cardano mainnet](images/reward-forecast-bau.svg)
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#### High transaction volume
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Prototype simulations of the Leios protocol indicate that it can achieve at least 20 times the maximum throughput of the current Cardano mainnet. This amounts to approximately 2 MB/s or 1500 tx/s, assuming the current mean transaction size of 1400 bytes. The availability of Leios, however, would likely affect the characteristics of the mix of transactions, so the the maximum transaction rate could be higher or lower than this estimate. Whatever the specifics, Leios will enable transaction volumes that are orders of magnitude greater than Praos.
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Prototype simulations of the Leios protocol indicate that it can achieve at least 20 times the maximum throughput of the current Cardano mainnet. This amounts to approximately 2 MB/s or 1500 tx/s, assuming the current mean transaction size of 1400 bytes. The availability of Leios, however, would likely affect the characteristics of the mix of transactions, so the maximum transaction rate could be higher or lower than this estimate. Whatever the specifics, Leios will enable transaction volumes that are orders of magnitude greater than Praos.
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Aside from the general benefit of high capacity, several specific use cases could benefit.
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Although the version of Leios proposed in this document does not support the particular use cases listed below, a minor variant or future version of Leios could.
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- *Priority pipelines:* Different Leios pipelines might have different stage lengths, throughput, fees, and/or Plutus execution limits, enabling applications to select their level of service.
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- *Externally batched input blocks:* Third parties could construction input blocks and provide them directly to the block producers, allowing a dapp or an exchange detailed control over sequencing of interdependent transactions within a block or even between blocks.
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- *Externally batched input blocks:* Third parties could construct input blocks and provide them directly to the block producers, allowing a dapp or an exchange detailed control over sequencing of interdependent transactions within a block or even between blocks.
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- *Nuanced roles for SPOs:* Leios opens the possibility of separating the protocol functions into separate processes that could be run independently but in coordination. For example, some SPOs (or parts of an SPO) might only create input blocks while others might only produce ranking blocks. In addition to enabling flexible configuration of Cardano worker services, this could encourage new operational models for SPO consortia.
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### Feasible values for Leios protocol parameters

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