Prop 53: Validation Settlement
Hello everyone. I am Alfred from team XPLA.
I propose the phase 2 of Validation Settlement, which plays an important role in the security and governance of XPLA.
In the Whitepaper, the initial goal of the Validation Settlement was provided for stabilization of validators participating in XPLA chain node operations.
This approach prevents malicious and monopolistic decision-making that could harm the ecosystem, while fostering an environment where validators actively participating in governance can contribute to ecosystem development.
Now, a year after the launch of XPLA Mainnet, more than 50 prominent validators are participating in our ecosystem and it is running steadily without any block issues.
We believe that we have achieved the initial goal of stabilizing the validation.
Therefore, I propose to switch the Validation Settlement to Phase 2, focusing on expanding and revitalizing the ecosystem through active ecosystem participation of stakers and validators.
Starting with Phase 2 of Validation Settlement, we have proposed a governance proposal - Proposal #52, which was to change the parameter for fee pool rate to increase the reward of validators by Validation Settlement.
The Validation Settlement with the new phase will attract more participants to the XPLA ecosystem.
Validation Settlement Phase 2
TL;DR
- Validation Settlement 2.0 Program: In the Phase 2, Validation Settlement volume is returned to the XPLA ecosystem as TX fee over a long period of time.
- Automatic Redelegation : Periodically redelegate Validation Settlement volume only for the validators that meet the conditions.
- This proposal will be executed within one month of the proposal being passed.
Please see the details below.
- Validation Settlement 2.0 program
1) Validation Settlement 2.0 program generates 1 tx per 1 block.
2) The tx generated by Validation settlement 2.0 program spends fee from the Validation Settlement volume, which runs out over a long period of time.
3) The tx fee generated by Validation settlement 2.0 program consists of [ TX Fee + Contribution Fee ].
3-1) Contribution Fee is calculated as follows and thus varies from block to block.
2 x [{(the amount of remaining XPLA in Validation Settlement) + (the amount of remaining XPLA in Fee store wallet)} / (the amount of initial Validation Settlement volume, 60 million XPLA)] x [{15 - (Average number of TXs per block in the last 3 months)} / 15]
4) The tx generated by Validation settlement 2.0 program contains program-related contents for each block, so the Validation Settlement 2.0 program is managed transparently.
5) TX occurs in a separate new wallet under Validation Settlement, and Fees consumed are also deducted from this wallet.
6) Part of Validation Settlement volume moves to separate Fee store wallet every quarter for TX Fee.
7) XPLA that is moved to Fee store wallet is not delegated to the validators.
- Automatic Redelegation
1) Redelegation is scheduled to be done by the snapshot of specific blocks each quarter.
2) The subjects of Validation Settlement program are the active validators who has self-bonded more than 10,000 XPLA
2-1) The Self-Bonded condition pertains to the accountability associated with the delegation of the Validation Settlement.
2-2) Conditions may be the subject to change, and the governance proposal must be precedent for the amendment.
3) Redelegation of Validation Settlement is distributed based on the percentage of pure Voting Power of each validator, excluding the Validation Settlement volume.
4) For the measurement of ‘pure Voting Power’, API addresses that contain the Voting Power information will be used, and users the average value over 3 months to prevent the abuse of snapshot method
5) To prevent the monopoly of the Validation Settlement volume, it is limited to 3 million XPLA for Validation Settlement delegation at most.
- Expectation of the effect on XPLA Chain
We expect that the Validation Settlement 2.0 Program will solidify the staking of XPLA. This would also support the governance community of the XPLA chain more actively and securely. In addition, it is expected to transparently induce the participation of the validator through Automatic Redelegation.
* The information above may be the subjects of change through the governance over time after Phase 2 transition.