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It’s Time to Grow: Phase 3 Staking Proposal


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  • Elrond Team
13 hours ago, EGod said:

When does phase 3 begin?

Most probably sometime in February (I estimate end of February - early March).

The date is not fixed as we have been focusing mostly on testing the features required for Maiar launch which comes first.

The implementation for phase 3 is already done and some testing has been performed but we still need/planned more testing and it also depends on what kind of issues we still find.

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  • Elrond Team
13 hours ago, Milan Kraus said:

1. Can also the base 2500 EGLD come from delegators? Or does it always need to be provided by validator?

2. If it can come from delegators and they undelegate so a node has less than 2500 EGLD stake, will the node be automatically deactivated?

3. I'm not sure whether slashing is already enabled, but once it will be, will it affect also delegators? If yes, it will be quite risky to lock delegation for a period of time - delegator will not be able to react to validator that starts to misbehave.

 

 

Hi Milan,

1. If you run a staking service (accept delegations) there is a delegation manager contract that allows you to create your own delegation contract with your preferred configuration (service fee, delegation cap, etc). For this you need to come with 1250 eGLD yourself, which will be the first delegated amount (your own delegation) and is required in order to keep your delegation contract active. Everything else can come from other delegators.

2. Yes the node will be deactivated by the protocol while the staked amount is below the minimum required. If in the meantime there is one delegation that causes the staked amount to exceed the min required, then the node will be re-activated.

3. Slashing is currently not enabled, but the intention is to have less impact on delegators (could be 0) and more impact on provider. This is still TBD and there will be a proposal before we activate the feature so we can discuss and reach the best decision.

At point 3 could you explain which lock you were talking about? Is this about the requested features for delegation SC for min lock period, where in exchange for longer lock time the service provider could have lower fees?

The way that will be designed is that delegators have a guarantee for lower service fees while they abide by the agreed lockup. The funds can be withdrawn any time nevertheless, with some penalties on the rewards for the last period if there is a breach of the agreed lockup. One thing we are trying to implement here is correctly defining the constraints for both parties, delegators and service providers. So if we have a breach of contract from the delegator, its rewards for the the last period have a penalty, while on the other side, if for example the service provider gets slashed, or changes anything with the agreed delegation contract parameters that negatively affects the delegation APR, then delegators can withdraw without any penalties.

 

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  • Elrond Team
13 hours ago, Milan Kraus said:

1. Can also the base 2500 EGLD come from delegators? Or does it always need to be provided by validator?

2. If it can come from delegators and they undelegate so a node has less than 2500 EGLD stake, will the node be automatically deactivated?

3. I'm not sure whether slashing is already enabled, but once it will be, will it affect also delegators? If yes, it will be quite risky to lock delegation for a period of time - delegator will not be able to react to validator that starts to misbehave.

 

 

For 1 there is also the option for you to not go through the provided delegation manager contract and create your own delegation Smart Contract, where you can set your own rules, no minimum delegated amount from staking provider, etc., but here all the coding/gas optimization/validation/testing/auditing efforts will be on your side, which is really important as the risk for loss of funds in case of bugs is high.

We have already spent a lot of time for the coding/testing/auditing etc of the delegation manager system SC and more will follow on the testnet, so for the people that do not have both the required experience and time to develop and test a safe to use delegation smart contract, we advice to use the provided delegation manager system SC.

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