Summary
This proposal aims to make the following changes:
Re-enable Staking/Delegations on Terra Classic exclusively to the current active validator set for a period of 60 days. The ability to create new validators will remain disabled until block height #8905758 (approximately, 22nd August, 2022)
New validators can be created only after block height #8905758 (approximately, 22nd August, 2022)
Motivation
Staking was disabled on Terra Classic as a security measure to prevent malicious entities from attacking the network. This, however, is leading to a governance issue where the basic rights for delegating and voting on governance proposals are being denied to ~99.9% of LUNC holders - which is a fundamental right on an L1 dPOS chain.
In order to restore the fundamental rights of LUNC holders to vote as well as to ensure the network is kept secure from attacks, I propose to re-enable staking exclusively to the existing validator set for a period of 60 days.
How will this help?
Giving the existing validator set exclusivity to validate blocks for the next 60-days will help in the following ways:
No new malicious actor can take majority and invalidate the current chain
60 days is a reasonable timeframe to get the staking ratio to a reasonable level, especially given the high staking returns at the moment, exponentially increasing the cost of attack (which currently stands at around $10k)
The active validator set will get a head start to capture most of the staking ratio before newer participants are allowed to join - this only seems fair considering they have supported the network for years.
Implementation: @ek826 has created a pull request to implement these changes. These have been peer-reviewed by Cosmos SDK contributors. Should the proposal go through, the PR will be merged to the Terra money repo.
Link to the pull request:
Note: An added advantage to re-enabling staking would be increase in transaction volumes on-chain, which would exponentially expedite the burn implemented in Proposal #4080.
The code is already written and the pull request has already been created and attached to the proposal. The code has also been peer reviewed by cosmos sdk contributors.
