SNIP 18 Update: Delegation threshold and minimal stake
This update includes an amendment to the SNIP regarding the Stake Delegation threshold mechanism and a proposal for the minimum Stake.
A new commit with the updated SNIP was submitted to the SNIP repo.
An Amendment - Delegation Threshold (DT)
We have decided to amend our proposal to exclude the Stake Delegation Threshold (DT) mechanism. After releasing our initial proposal, we received numerous comments and feedback from the community. While there were many positive responses, the DT mechanism raised concerns among developers and users. Their constructive and rational feedback prompted us to engage in internal discussions and conduct further research.
We concluded that the DT mechanism is redundant and may impede the growth of the staking community. By eliminating the DT, we aim to:
- Enable smaller staking infrastructure providers to compete with larger ones more effectively.
- Ensure a better separation between staking infrastructure providers and capital providers, allowing the former to focus solely on delivering superior products.
Minimum Stake
We suggest the minimum stake to be 20K STRK, which is within the range of the original proposal. This number was derived to balance several considerations, including the security of the decentralized protocol, the desired number of Stakers to ensure broad participation, the estimated hardware costs for Stakers, and insights gained from comparisons with other blockchains, learning from their experiences and avoiding their mistakes.
The suggested value is our proposed starting point for this protocol version. As part of the rationale behind this version, it is subject to change and may be adjusted to better suit the protocol’s needs, according to the relevant governance procedure.