Hey everyone,
Big thanks to @jack-story and team for honestly considering and testing our original proposal to reduce the staking thresholds.
We will absolutely vote YES for the prop SIP-00010 in it’s current form, but believe it can take a meaningful step further.
I posted this under Jack’s SIP-00010 post, but want to throw it out there as it’s own topic, because I think it’s worth a larger discussion.
Reducing the initial IP staking minimum from 1024 to 32 IP is a great step toward inclusion. Where we would like to see a change is removing the minimum for adding to one’s stake.
Rationale given in prop: “Lower minimums may increase total delegation and reward distribution count, leading to faster state growth.” and “the 32 IP threshold for staking amounts and 0.1 IP threshold for staking-related operations still provides meaningful barrier against spam, and economic costs remain prohibitive for attackers.”
Every other chain we support (30+) allows their delegators to add whatever amount they like to their initial stake. I’ve not seen accelerated state growth as an issue discussed.
Benefits of lowering the subsequent staking minimum:
- Keeping the initial staking minimum proposed at 32 IP combats spam and controls state growth.
- Removing the 32 IP minimum for adding to one’s stake still controls spam because of the initial requirement to start staking.
- Removing the minimum to add to one’s initial stake allows people to take advantage of the miracle of compounding and build their stack/wealth faster.
- Removing the minimum to add to one’s initial stake can accelerate the bonded ratio and thus increase chain security.
- Smaller validators need more time to accumulate an additional 32 IP. Removing the minimum to add to one’s initial stake allows validators to compound our returns and grow faster and increase chain health.
- Removing the minimum to add to one’s initial stake gives validators the opportunity to explore automated compounding features, like REStake. Validators pay restaking fees so Average Joe isn’t affected by network fees and can compound his returns faster. Additionally, automated compounding allows validators to grow quicker. These two combined increase bonded ratio and decentralization.
- In our experience, we’ve not seen the many tiny transactions causing delays in block production. If it does, can validators simply add more RAM to their machines? (I’m a TradFi guy, not a tech guy, so please pardon any ignorance)
- Removing the minimum to add to one’s initial stake keeps Story competitive with other network staking programs. When delegators run into a barrier that isn’t present on other chains, it produces negativity and we feel investor psychology is important to consider. We don’t want a delegator to think, “Well, that ‘F-in sucks.” We want them to be stoked to participate.
Please leave your thoughts in the comments below.
Thanks again @jack-story and team!