Centralization via staking

  • I see an increasing problem with validators getting more and more voting power. Smaller Validators need to lower their fees to be attractive for delegators since a lot just focus on low fees. Bigger validators can continue offering low fees because of the high delegation amount.

    @coco and I, as a validator in the top 10, decided to tell our current delegators to maybe split their funds to lower validators and tell new potential delegators to rather choose a smaller one than us. This helps the blockchain to stay decentralized, but maybe not all validators agree or care about it.

    It may be an unpopular opinion, but I see an increasing need to punish validators and/or delegators if the voting power is too high.

  • One of the ways to solve this problem is to separate block rewards between all voters.
    All validators get the same block reward as now, nothing changed.
    But these tokens split between voters.
    More voters validator has, less reward gets each of them.

    Validator with 30% will pay much less than validators with 10% and people will move their vote power from one to another.
    It's a simple and self-regulated system.

  • Another solution will be to set a cap on the maximum allowable % tokens (say 10%) that can be staked with a Validator. Once the ceiling is reached delegators will not be able to delegate to that particular Validator and naturally delegate to other lower cap Validators. Thus, Tradehub will balance itself and eliminate the campaign by anybody to encourage delegators to delegate to lower % cap Validators and eliminate centralization of the voting power.

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