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The 2500 EGLD staking requirement for a v node is quite high, any chance this will change?


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Good day. 

I just discovered this amazing crypto last week, and have been reading as much as I can since then. 

I really want to invest a significant amount and start my own validator node,  as I have done for many other coins in the past  (like I have been running DCR nodes for the last few years). 

However currently 2500 EGLD costs upwards of $90,000 US, which is a massive sum for an enthusiast such as myself. 

I see that EGLD token price has rapidly sky-rocketed with this bull run, so I was wondering,  are there any plans to lower the staking amount to something more affordable?  Or if I could set up a validator node in observation mode,  would there be any economical benefit to do so? 

I also read that the number of validators node is set to constant, so perhaps the need isn't there to establish thousands of more nodes, but if that is a goal, I imagine it'll be really difficult to convince new comers to the coin to jump in with $100k to set up a node, that is unaffordable to 99.999% of the world. 

Curious on any thoughts on this.  Did I just miss the boat?  Or will the 2500 egdl amount be adjusted to promote validator nodes spawning? 

Excellent project with a great future, thanks! 

 

Edited by Kevin Reese
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  • Elrond Team

Hi Kevin and welcome!

At least for the next few months there is no plan to change the minimum stake per validator node.

There is a "soft-auction" in development which we refer to as Phase 4 Staking Proposal, where the price per node can be dynamically adjusted, but not sure though if it will cause the price to go lower as currently there seems to be significant demand. There will also be a minimum price per node as well there, but not all parameters have been decided so I can't say for now what that will be.

Before that though, we have prepared the Phase 3 Staking Proposal which you can read about in this thread, and which is already fully implemented, and right now in testing.

The reason why we do not allow for an unlimited number of nodes right now is due to security and performance constraints for the number of nodes per shard and also to make the APR attractive for validators. The shard number will be increased (and in effect the number of validator nodes will be increased by at least 400 for every new shard) when we exceed also some usage thresholds (e.g on average used block gas capacity/max block gas capacity > 0.4 ), which might decrease the minimum price per node.

We have simulated the network with as many as 256 shards, and also we had a testnet where together with the community we run nodes in a setup of 50 shards, so with enough usage the number of nodes will increase and the node price (in eGLD) will definitely decrease.

For the other types of nodes, we have worked on archive nodes which is just some evolved observer node that doesn't do pruning and thus needs some slightly different storage management, etc. We are thinking of an economical model that we could apply to these types of nodes, but didn't yet decide on something.

 

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This is fantastic answer . I love this project, from the cutting edge tech to even this 10/10 level of community interaction, I could not be more optimistic about ELROND.

I see your reasoning, as you have so well described it, and it makes sense to me.  I also have been really studying EGLD this week, and have been monitoring the que sizes etc, to see what kind of time intervals it will take to delegate, and learning more.

Besides the technology, the economics of this are also very unique, I don't think anyone has tried just this sort of design (in terms of the APY, staking, ques, and the unstaking period, etc). 

If there is just one little tweak I would recommend for possible consideration,  would be for (small) rewards for Observer nodes.  Perhaps in years to come, perhaps a small fraction of fees or stake could could to observer nodes?  I would recommend this as it there are no incentives for observer nodes, but they are good to have, and while many users will not have 2500 egld to start a node, they could help the network with a differerent tier of observer nodes.

Hmm... However perhaps with your brilliant shard design here, maybe observers are not really needed much for any additional smart contract processing resources,  as the sustained transaction throughput is already quite high. 

Thanks again for the well considered answer!

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