Introducing NO Bonding and Increasing Stakeholder Incentive Alignment

My quick 2 cents, I may do a longer one latter. I agree with Hasu’s point Proposal: Introducing $LDO Staking - #25 by Hasu of LIDO attracting a quality NO’s set partly thanks to the low friction. I tend to agree that some bonding would be positive, but I’m not sure if it compensates it negative externalities. Note that if a meaningful bond was required I don’t think client teams could afford to stay in the set.

Posting a small bond on the range of fractions of a percent addresses the most recent incident yes. But it may be woefully insufficient for future events. If the entire key set of an NO is slashed, the penalty ranges from a min of 3.12% (since bellatrix) to 100% of offending stake.

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