# Lido on Ethereum: Relay Voting Proposal

**URL:** <https://research.lido.fi/t/lido-on-ethereum-relay-voting-proposal/3135>\
**Category:** Proposals\
**Created:** [October 28, 2022, 9:06am UTC](https://research.lido.fi/t/lido-on-ethereum-relay-voting-proposal/3135 "2022-10-28T09:06:21Z")\
**Posts on this page:** 1\
**Showing post:** 52

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**Author:** ![irina](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/irina/32/734_2.png) [@irina](https://research.lido.fi/u/irina)\
**Post date:** [November 30, 2022, 8:00pm UTC](https://research.lido.fi/t/lido-on-ethereum-relay-voting-proposal/3135/52 "2022-11-30T20:00:28Z")

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Hey everyone,  
Taking into consideration three parameters which guide an optimal min-bid choice: amount of blocks produced locally, change in Lido’s protocol APR and percent of validators who do not opt-in to use min-bid functionality, we developed a model. The key driver in the model to determine an appropriate min-bid is the expected usage of min-bid across Lido validators.  
Based on an approximation that ~60% (i.e. 40% do not) of all Lido validators opt-in to using min-bid, the model yields a recommended min-bid value of 0.07 at which an estimated minimum 28% of all blocks produced by Lido validators will be produced locally, with a maximum protocol APR decrease of 15%.  
Indicatively, the model yields that if 80% or greater of Lido validators opt in to using min-bid, the min-bid value could also be set to 0.05 with similar results with regards to % of blocks produced locally and a maximum APR decrease.  
[Model](https://docs.google.com/document/d/1uwSSEX8j-Leo7f9UqhQ0v99w2L_AHtKySnz7r1OJeUI/edit?usp=sharing)

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