LUNA Classic Blockchain Validator 10% Voting Cap

Governance & Proposals
1

Summary

LUNA Classic (LUNC) Validator’s voting power is imbalanced. As of December 19, 2022, at 2:43pm CST the top 5 validators possess 47.44% of the blockchain voting power; The top 10 validators possess 70.74% of the voting power and the top 20 validators possess 86.46% of the voting power. LUNC Classic has 130 total validators.

Set the maximum voting power a LUNC Validator may reach to 10% of the total voting power.

Motivation

Increase the decentralization of LUNC Blockchain Validator’s voting power. Current voting imbalance has the potential to allow the passage of proposals not beneficial for the decentralization of the LUNC blockchain. In fact, it has the potential to enable the passage of proposals allowing the misappropriation of funds; improper centralization of the blockchain and the likes.

PROPOSAL

Purpose

Increase the decentralization of LUNC Validator’s voting power.

Problem

LUNC Validator’s voting power is imbalanced. This has the potential to allow the passage of proposals not beneficial for the decentralization of the LUNC blockchain. In fact, it has the potential to enable the passage of proposals allowing the misappropriation of funds; improper centralization of the blockchain and the likes.

As of December 19, 2022, at 2:43pm CST the top 5 validators possess 47.44% of the blockchain voting power; The top 10 validators possess 70.74% of the voting power and the top 20 validators possess 86.46% of the voting power. LUNC Classic has 130 total validators.

Solution

Set the maximum voting power a LUNC Validator may reach to 10% of the total voting power. Practically speaking, this decreases a small number of validators from solely deciding or controlling the passage of governance proposals. Thus, helping to spread the voting power over the many oppose to the few validators. This helps improve the LUNC Nakamoto Coefficient (see below). No validator will possess more than 10% of total voting power for the LUNC Blockchain.

Process

Any validator that reaches the maximum 10% of the total voting power, all remaining voting power over 10% will be then equally redistributed to the remaining active validators that possess less than 10% of the total LUNC validator voting power. No current or future non active validator will share the redistributed voting power. Any validator that becomes non active post redistribution will lose the redistributed voting power which will then be equally redistributed, as above, among all active validators.

CURRENT NAKAMOTO COEFFICIENTS

A high coefficient means that a blockchain is harder to disrupt, because it’s more decentralized.

  • Luna Classic has a Nakamoto Coefficient of 9.
  • Luna Nakamto Coefficient of 57.
  • Bitcoin has had a Nakamoto Coefficient as high as 7,454 if not higher.

Source
Terra Classic Aura Stake. https://terra-classic.aurastake.com

APPENDIX

Nakamoto Coefficient: Indicator for Blockchain Decentralization

The Nakamoto coefficient measures decentralization and represents the minimum number of nodes required to disrupt the blockchain’s network. A high Nakamoto coefficient means that a blockchain is more decentralized.

Quantifying Decentralization

Quantifying Decentralization. We must be able to measure blockchain… | by Balaji S. Srinivasan | news.earn.com

4 Likes
2

I dont think 10% will help much its only allnodes who has more that 10% at 18 atm . I think 5% best

3

This is a MUST on our to-do-list. I would however lower it even further to 7-8%.

4

and the we should also discuss how the funds will be used when an fund required PROPOSAL is passed.
should we use something like streamed payments.
we pay by how long the team worked for lunc , not send the funds to some crap team at once.
if the team is not very helpful we can cut the payment stream to protect lunc

5

Let’s do this

6

Between 6-8% will be nice

7

it’s a good idea but it was already 5% approved passed and that’s it. The validator has a say in lunc like a whale in the stock market and does what it wants with the community. Approved by 4-5 people projects are a FACT! Decentralization is just in the discussion and I don’t want show central fingers at anyone but if they are determined to stop it, they will lose everything. Try to persuade Putin to give up power… Try to persuade Elon /Gates to give you, his money :slight_smile: Try to persuade your friend… Unfortunately, without a revolution it will be difficult. Everyone wants to drive a Ferrari with a powdered nose and top model girl…

Community or not
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8

Is it technically possible to enforce a minimum Nakamoto coefficient? it will not limit single entity voting power to a percentage, but it can still help the chain decentralize. We can start from 4, and rise the number as time passes.