# Community Staking Module

**URL:** <https://research.lido.fi/t/community-staking-module/5917>\
**Category:** Proposals\
**Created:** [November 9, 2023, 11:33am UTC](https://research.lido.fi/t/community-staking-module/5917 "2023-11-09T11:33:44Z")\
**Posts on this page:** 1\
**Showing post:** 18

<div class="post-metadata">

**Author:** ![dgusakov](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/dgusakov/32/1238_2.png) [@dgusakov](https://research.lido.fi/u/dgusakov)\
**Post date:** [November 16, 2023, 8:27am UTC](https://research.lido.fi/t/community-staking-module/5917/18 "2023-11-16T08:27:17Z")

</div>

Hi, @micho! Or should I call you [Pablo](https://discord.com/channels/405159462932971535/1138704692772356097/1174508854797676554)?

 ![image](https://europe1.discourse-cdn.com/flex013/uploads/lido/original/2X/f/f8b2495d11fa3e215e861d730f823c03c7362e85.png)

Anyway, huge thanks for your reply and opinion!  
Let me address some of the points outlined.

> [@micho](#):
>
> Further, this proposal offers a 7.5% fee to Node Operators, which is higher than the 5% regular fee to permissioned operators, signaling that the goal is to subsidize APR in order to convert operators from decentralized staking protocols.

The numbers provided are by no means subsidies. According to the ordinary understanding, subsidy stands for the case when you get more than protocol actually earns with your help. This is not the case here since only part of staking fees is allocated to NOs, and definitely not more than the original 10%. It is just a different fee split. Bonded operators are more appealing for the Lido on Ethereum protocol in terms of security. Hence, allocating a larger portion of the staking fees to them is pretty straightforward.  
It is also important to highlight that no actual fee structure is proposed. All the numbers are just examples. Actual numbers are to be calculated and proposed closer to the mainnet launch.

> [@micho](#):
>
> Considering this, I suggest modifying this proposal to **Ensure that the Operator ETH APR never exceeds the solo staker ETH APR.** Offering smoothed rewards and lower barrier to entry is already an outsized benefits to operators.

What you propose here has nothing to do with the open market conditions. Moreover, to make CSM Operator APR no higher than Vanilla solo-staking, a staking fee should be 0%. This is, without a doubt, not fair for CSM Operators since Curated operators get a 5% staking fee, and other protocols do allocate staking fees to the permissionless operators. Given the facts mentioned above, I don’t think your proposal can be accepted in its current form.

> [@micho](#):
>
> Alternatively, a self-limit on Lido’s total share of validators can be discussed in order to not grow at the expense of decentralized staking, which fulfils and crucial role in the ecosystem.

This topic has been discussed already. Make sure to check out [Should Lido on Ethereum be limited to some fixed % of stake?](https://research.lido.fi/t/should-lido-on-ethereum-be-limited-to-some-fixed-of-stake/2225)

---

_[View the full topic](https://research.lido.fi/t/community-staking-module/5917)._
