Avalanche Staking & Delegation Proposal

Avalanche is already decentralizing at an unprecedented pace and is now in a prime position to lower the barriers to staking and welcome in the next wave of full, block-producing validators. As a platform that is increasingly steered by and for its community, we are looking for your feedback on minimum staking requirements for independent validators, and minimum fees for delegations.

Please participate in this poll and ensure your voice is heard to help Avalanche reach the next phase of its evolution.

What should be the minimum required stake to run a node?
  • 2,000 AVAX
  • 1,500 AVAX
  • 1,000 AVAX
  • 500 AVAX

0 voters

What should be the minimum delegation fee?
  • 2%
  • 5%
  • 7%
  • 10%

0 voters

We will close the polls in 7 days.

27 Likes

I believe a stake of 2000 is a good number.

2 Likes

Making the minimum stake as small as possible while substantially increasing the minimum delegation fee would be a massive boost to our node decentralization.

10 Likes

I voted 2000 AVAX and 10%. Too many validators set the delegation fee to the minimum (2%), which basically removes the difference between validating yourself and delegating the validation to someone else from a reward perspective. I think that we need to incentivize validators significantly more than delegators, since they are much more important to the network.

10 Likes

Minimum stake for validation could be 1000 Avax as it will be much more harder to have a node when the price goes higher. As mentioned in other posts having minimum delegation fee at %2 limits profit and doesn’t provide the incentive to run a node. It could be raised to %5.
I must mention that I have enough to run a node currently and my votes are for decentralization only :grinning:

Great team lets go, i vote for 1000 AVA and 7%

Agreed. Voted 500 and 10%. Lowering the barrier to becoming a validator, while further incentivising validation through increased delegation fees, is what’s needed for decentralisation.

14 Likes

vote for 2000 ava and 2%

1 Like

I think both 1500/2000 are fair numbers as of now. Slashing the requirements by 50% makes us look like we are throwing numbers. If anything, I would say try 1500, see how it goes, then based on the data that we get /price of AVAX we can consider lowering it even more.
Also the 2% min fee is too low. Me and some pals are running nodes but we have no incentive to try to attract delegates as of now, because the profit margin is too low so it’s not worth the time/effort.
The big whales are charging 5%-10% and they are at almost full capacity, while no one will delegate to a validator with 2000 AVAX and 5% fee, so making it more attractive for small validators would boost the number of validators as well.

Edit: Also, if you set it too low, you might get many validators who ‘Set it for 1 year and forget it’, so this is something to consider as well. You want validators to have skin in the game not just to prevent sybil attacks, but to make them have an incentive into the protocol running at optimal performance, and that perform client updates regularly.

5 Likes

I’m voting in favor of increased incentive for validators to operate on the network and further improve the network decentralization. While the current staking returns are very competitive we do need to balance the incentives and make sure the ease of delegation comes with an appropriate price to be paid to the operators who do the heavy lifting in the network.

4 Likes

Voted to lower the Staking requirement to 1K AVAX and raise the minimum delegation fee to 10%. The later being most important IMO.

2 Likes

+1, 500 and 10%, lets go balls to the wall with decentralization and let all the other projects quiver when they look at how many full block producing validator nodes we have.

6 Likes

What is exact reason for the poll, when just a couple of whales, big companies who invested tons in to marketing holding all stakes and rest of nodes have zero ( obviously ) ? Increasing this values just make whales benefit and will lead to absolute network centralization. Until fair stake distribution is not implemented in to Avalanche is no reason to bother with such values. People will stake to well advertised projects even with 20% fees, just because they read about in internet and believes this guys know better how to spin 4$/m VPS on Contabo then anyone also.

2 Likes

I think 2% is way too low. This low fee makes delegating much more attractive than running a validator yourself where you then have to pay for hardware, electricity and/or hosting and invest some time for updates etc…

As for the min stake, I am not sure I know enough about the system.

Could someone running many “cheap” validators @500 AVAX each use them to harm to the network? Would his attack capabilities be any different if he had 4 times less validators @2000 AVAX at his disposal?

4 Likes

+2, 500 and 10%, lets go balls to the wall with decentralization and let all the other projects quiver when they look at how many full block producing validator nodes we have.

4 Likes

I’m sticking with this.

I’m curious why so many people seem to be voting for 1k + AVAX, I haven’t seen any convincing arguments. If we’re all about decentralization and the network can take on more validators, why wouldn’t we want it to be low?

I think we should discuss increasing the difference between short term and long term staking. As of right now, the difference between compounded 1 month (9.7%) rewards vs a full year (11,4%) is insignificant compared to opportunity cost.

I voted for 10%. Right now if we assume a $500 yearly cost of maintaining a node and a 11% staking reward, anyone with 65k AVAX or less would be financially better off delegating to a random node offering a 2% fee than to run their node. It needs to be raised.

This combination of increasing min delegation fees and lowering validator min requirement seems to be optimal and most in line with what Avalanche stands for.

5 Likes

I don’t see a reason not to reduce the min staking amount and increase the min delegation fee.

We can handle lots of nodes.

We should incentivize lots of little machines. We should incentivize distribution of larger machines.

6 Likes

I agree with reducing the entry point for validating, and increasing the minimum fee. In my case, I run my node from home, and setting it at 2% will take a long time to offset my setup and running costs, but I seem to need to do that atm just to get delegations, as my 3% seem to discourage delegation.

I consider that is a good idea to reduce the entrance barrier to be a validator. I consider 500 avax is a good option and I agree that the minimum delegation fee be 5%. In my opinion, the way to reduce concentration is the distribution. It is neccessary to avoid whales. :slight_smile: :argentina: :argentina:

1 Like

I think that with a 500 minimum avax per validator is a good idea and would give the opportunity to more people to run a validator, this is Avalanche’s goal, more and more validators.

2 Likes