disclaimer: I currently run a validator, and this proposal benefits me.
One of the important roles in a cosmos blockchain is the role of the validator. They need to be stable, fast, and as decentralized as possible.
Others are proposing to use validators to ‘reward’ protocols for their work. Which I believe is tangential to both this and the number of validator proposal.
The challenge as I see it, is that the current validators on the list are not able to generate enough income to pay the hosting bills. Which can lead to good validators exiting, or taking shortcuts to make ends meet, as well as having a few key individuals able to control the governance of the network.
The other challenge we currently have is that the 5 validators currently make up 33% of the staked luna, (50% is controlled by the top 9).
What I am proposing is to use a quadratic style approach. In this example, I have used the square root of luna.
What this does is spread the load differently than regular, making larger amounts count a bit less than just the straight number.
so if we use the SQRT() approach, now we get the top 11 people controlling 33% of the vote (up from 5), and the top 20 validators controlling 50% of the voting.
This mechanism can also be used when it comes to validator rewards. In a nutshell, instead of getting rewarded on the percentage of votes you have in the pool of staked votes, you will be rewarded on the
percentage of votes you have in the SQRT() pool. This changes it so that the smaller validators get more $, and the larger validators get less (like 50% less for the top ranked validator).
I estimate it takes 800 luna to run a validator a year. (maybe more after today) … I’ve highlighted that line in the spreadsheet below.
The other adjustment I thought of was not including the ‘self-delegated’ amount in the SQRT() calculations, so validators could always self-stake their own funds to enhance their rewards/voting ability… but I thought I’d leave the simpler version up for now, and see how people feel.
disclaimer: I currently run a validator, and this proposal benefits me.