Foundation reducing aid for "pseudo-validators" in pursuit of enhanced decentralization for Solana network
Heckin' Delegate! Solana Takes Aim at Validator Centralization
Ready to shake things up amidst the crypto landscape? The Solana Foundation's bringing the heat with some serious changes to its staking delegation program. On Wednesday, April 23, Ben Hawkins – top dog of the staking ecosystem at Solana – dropped the bomb that they'd be booting validators with minimal external stake count.
Enter Solana (SOL). This bad boy's revamp aims to transform the very basis of its staking delegation game. If you ain't got enough grunt power outside the program, your validation days are numbered. Specifically, for each legit new validator that strolls into the program, Solana grips three underperformers with a low external stake – less than 1,000 SOL. This applies to validators old enough to be in the club for at least 18 months.
Solana: Centralization Concerns and Fat Cat Validators
Basically, Solana's strategy is to pare down the legion of validators hogging the Foundation's stake. At the same time, the Foundation's got their eyes on those validators expanding the staking squad on Solana.
Why the tough love? High computational costs make validating for Solana a pricey affair. According to some hard-hitting estimates, running nodes'll set you back a cool $45k to $68k annually, without even considering the hardware expenses. This means only big-time validators can hope to stack their chips while fork-trucking the Foundation. Not so cool, cuz that step towards centralization isn't a good dance for the network's future.
Chart of the Week: Solana's Likely to Shake Up the Crypto Market
Solana, with its sweet staking rewards, reaps one of the highest shares among major chains when it comes to locked-up tokens. At present, a whopping 65% of Solana's circulating supply got their staking game on point. In comparison, Ethereum reigns in with a mere 28% and Binance Smart Chain at 21%.
Stalking the bank with Coinbase, users bag themselves 5.84% annual percentage yield on Solana. But watch your step, cuz those earnings are measured in SOL, which can be a wild ride when it comes to price volatility.
SOL Strategies Nabs a Half a Billion Bucks for Solana Purchasing and Staking
It's Time for Solana Validatees to Step Up or Ship Out
The Solana Foundation's not playin' around any longer. By targeting activist validators and promoting self-reliance, Solana should realize a more decentralized network ecosystem. It's the perfect blend of muscle and strategy.
Solana's been flirting with centralization risks, but with this new policy, the Foundation hopes to reduce the reliance on major players, mix things up, and create a more decentralized network where many validators contribute to keeping the network secure.
Not sure how many validators will catch the chopping block initially or over the long haul, but the strategy aims to shuffle things up, encourage diversity, and promote a healthier Solana network. Here's to a future with fewer "Validators in Name Only" (VINO) and more nose-to-the-grindstone warriors.
Enrichment Data:Want the lowdown on Solana's strategies for minimizing centralization risks? Here you go:
Solana's Centralization Attack Plan:
- Validator Reduction:
- The Solana Foundation's proposed 3-to-1 approach means that for every validator joining the Solana Foundation Delegation Program (SFDP), three validators with low external stake will be axed. This also applies to validators that have been eligible for delegation for at least 18 months and have less than the target 1,000 SOL stake.
- Promoting Self-Reliance:
- Reducing support for low-stake validators encourages the rest to find their own stakers and stimulates independent growth.
- Decentralization Boost:
- Removing inert validators strengthens the network, fostering a more diverse set of active players.
- Centralization Risk Mitigation:
- High costs tied to running a validation node risk fostering centralization cuz smaller validators'll struggle to stay afloat without support. The new policy seeks to even things up by promoting a diverse and healthy network ecosystem.
- Solana is taking aggressive steps to address validator centralization concerns within its staking delegation program.
- Ben Hawkins, the leader of Solana's staking ecosystem, announced on April 23 that validators with minimal external stake count would be removed from the program.
- Solana’s revamp aims to transform the staking delegation game by targeting validators with low external stake and encouraging new validators to join with a substantial amount of SOL.
- Solana's strategy involves removing validators who have been eligible for delegation for at least 18 months and have less than the target 1,000 SOL stake, making way for more active and self-reliant validators.
- The Solana Foundation hopes this approach will lead to a more decentralized network ecosystem, reducing reliance on major players and promoting a healthier Solana network.
- Ranging from $45k to $68k annually, the high computational costs of validating for Solana make it an expensive endeavor, potentially leading to centralization risks.
- With a strategy that aims to even things up by promoting a diverse and healthy network ecosystem, Solana seeks to counteract these centralization risks and foster a more decentralized future.
