Discussion on Node Operator Admission Criteria and Process

Node Operators
2

There are a few topics tied to this one:

  1. when Lido should start to board new validators?
  2. as per @JK_stakefish post - how do we ensure alignment of the new operators?

For 1. I think there should be a couple of criteria crossed: first, a threshold of total staked eth % for each node operator of Lido: 0.5% of total ether staked per Lido operator (I think that’s the case already)? 1%?
The other is sustainability. Ops should be comfortably sustainable for an operator. ATM an operator earn from ~$400 to ~$1000 per month, which is not enough to pay hardware and labor costs for quality ethereum ops. When more validators come online, this will grow to 5-10x of this which feels like good enough. I think we’ll be able to cross the sustainability threshold in 2-3 weeks.

Overall, I think we’ll be ready to onboard a new operator in 2-3 weeks from now and the next one, depending on the stETH supply growth, pretty soon after that; by then we should have a simple process to determine that we have an open slot.

For 2. I’ll defer to the main distribution discussion for now.

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