HIP-30: Validator Network Optimization and Token Emission Reduction

Governance Validator DAO
87

It’s evident that there are several aspects that need to be addressed and discussed further to find an optimal solution. Let me try to summarize the key concerns and potential directions for addressing them:

  • Reducing the number of shards and optimizing node performance: It seems that there’s a general consensus on reducing the number of shards to two for now and potentially expanding it in the future if the need arises.

  • Long-term sustainability and reduced token emission rate: There are concerns about the transparency of treasury management and how the funds will be spent. A more detailed plan for fund allocation and community involvement in decision-making may help alleviate some of these concerns.

  • Balancing validator rewards and encouraging healthy competition: The idea of limiting BLS keys per validator per shard has been discussed, as well as removing EPoS altogether. However, there are concerns about the implications of such changes on validator earnings and potential market effects. A more refined proposal for adjusting key cap limits or modifying EPoS bounds is needed.

  • Ensuring fairness in validator selection and preventing concentration of power: Suggestions have been made for setting a cap on the percentage of total network stake a single validator can hold or implementing penalties for exceeding this cap. Further discussions are needed to find a reasonable balance that promotes decentralization without creating unintended consequences.

  • Recovery effort governance: The community has expressed concerns about the lack of DAO involvement in the recovery process. Including DAO governance in the recovery effort can help promote transparency and community engagement.

The key takeaway from this discussion is that there are several aspects of the proposal that need to be reevaluated and refined to strike a balance between network optimization, sustainability, and community involvement. It’s crucial to continue this conversation and collaboratively work towards a proposal that addresses the concerns raised by the community.

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