Hey folks!
I want to revisit this subject after a period of time has elapsed…
Since the Rated team introduced the proposed mechanism for identifying solo-stakers, there has been significant progress made toward Community Staking initiatives by Lido DAO contributors. Specifically, we have put forward the Community Staking Module (CSM) for consideration by the DAO and outlined the primary design decisions for this module. Consequently, the potential implementation of the mechanism proposed by Rated has become more apparent.
The primary goals of the CSM are as follows:
- Allow for permissionless entry to the Lido on Ethereum Node Operator set and enfranchise solo-staker participation in the protocol;
- Increase the total number of independent Ethereum Node Operators;
- Bring > 300 new independent Node Operators to the Lido Validator Set within several months of mainnet launch.
However, a challenge arises with the existence of permissionless entry, as it doesn’t necessarily guarantee an increase in the number of independent Ethereum Node Operators. This is due to the possibility that, with permissionless entry, the majority of module participants could be the same professional node operators or sybils. To mitigate this risk, we are considering the introduction of an Early Adoption period for the module, designed to increase the likelihood of a majority of independent participants.
In this context, the proposed analysis by Rated could be employed, where the solo staker index dataset could be utilized as part of an Early Adoption list for the module. It is important to note that this list will not be confined solely to the Rated dataset but will incorporate it as a part, while the rest of the Early Adoption list will consist of community members who indicated their interest in participation in Lido community staking initiatives by participating in DVT trials as community stakers, holders of CS OATs on Galxe, etc.
The Early Adoption list is proposed to be in effect for the first few months once the CSM has launched, after which it will be deactivated, allowing fully open and permissionless entry into the CSM under the same conditions for everyone. During the Early Adoption period, it’s suggested that each have a limit on the maximum validators they can set up, to prevent the dominance of large (non-solo) node operators in the CSM space.
In terms of implementation, the current proposed idea is to mint non-transferable NFTs for the deposit/withdrawal addresses from the dataset that will serve as entrance tickets to the module during the Early Access period.
Note: It is crucial to emphasize that all the considerations above are currently under consideration and require approval from the DAO as part of the module design before the CSM mainnet launch.