I am Adriana (@adriana_kalpa @Twitter), founder of KalpaTech and Today in @cosmos and I’m happy to join Decentralized Staking Defenders. I encourage and support Remus’ initiative for a decentralized network.
Today in @cosmos I talked about decentralization and how I believe community should work together and find solutions to make the network more secure. I proposed a delegation model in which rewards earned by both validators and delegators to be pushed as new delegations to lower stake validators. Some of the active validators that support decentralization are already doing this, but what if we could do it at a larger scale?
The reasoning behind this extended idea and why I believe it could work detailed below:
Thomas Piketty’s book “Capital in the Twenty-First Century (2014)” presents data for several hundred years that support the central thesis according to which, the owners of capital, accumulates wealth more quickly than those who provide labor, a common socioeconomic trend.
Analyzing @cosmos inflationary model in which:
-a 4% reward bonus is given to the validator that proposes each block, bonus which is distributed to its delegators as well
-rewards earned by validators/delegators can be immediately reinvested in capital
Can we assume that we are currently running on a “Rich get richer, poor get poorer system” described by Thomas Piketty’s in his book? If so, how can a decentralized project like @cosmos break the model set up in hundred years by centralized systems? What are the solutions?
In my opinion, to be able to disrupt such a powerful system, there are some major considerations to be taken into account by our community, both validators as well as delegators:
will to make a difference
looking for the greater good
The reward rate today, which is calculated based on number of atoms staked, is 12%. Average withdrawal reward interval of a user is once every 7 days. What if, every week the reward withdrawn will be pushed back as delegation to smaller validators? What will this change?
When I first started thinking of this idea, I initially had in mind a proposal in which if every validator with, let’s say, a minimum of 1 mil atoms at stake could further delegate its rewards to lower validators, 1.5 mil atoms will be pushed to lower stake validators/year.
I’ve been running this idea for a while now and disscused it with several validators as to understand whether this action would be one that will find support or not. I strongly believed that feedback is an important factor to consider if deciding to pursue this idea further
The arguments to sustain this move were concentrated in two main directions:
a greater distribution in validator participation will create a more valuable network
smaller validators will be incentivized to invest in their infrastructure, raising security of the network
What I found out from these discussions is that everyone is actively thinking of ways to make the network more decentralized, moreover some of them already started acting in this way by delegating part of their rewards to lower validators as a sign of support. Well done!
But what if we all do this?
Every validator & delegator, no matter of his stake, could push his rewards as delegations to lower stake validators. In this way, everyone participates.
I acknowledge the fact that Cosmos business model is designed to be an adversarial one, but don’t we all have a duty to the network to keep is decentralized? And why not do this with the people that have been here from the beginning? Those who have been constantly building, educating, advising the community for the past 2 years?
This is mainly the case for current low stake validators. ICO participants, builders, community members, Gaia testers, GOS winners. I believe all of them have rightly earned their place at the table.
Current proposal, in which validators’ & delegators’ rewards are pushed to lower stake validators as delegations creates a system in which in a year term 5%-10% of atoms can be moved from top validators to middle/small ones, creating a more robust and decentralized @cosmos
Although this proposal can be seen as challenging and everyone will of course applying their own criteria of selection like security, commission, community work or personal preferences, I am confident that once it will be implemented it will create a snowball efect.
Today we are 3484 unique stakers.
Let’s all work together and decentralize @cosmos!
Who’s on board?