Prop 296: LSV Announcement - Sunset
To Crescent Network Liquid Staking Validators,
As part of our strategic transition and sunsetting of the Crescent Network, the Crescent Foundation is taking essential steps to ensure a smooth and orderly closure of our current operations. We require the cooperation and action of our Liquid Staking Validators (LSV) in the following process:
- Foundation Validator Nodes: On March 18th, the Crescent Foundation will initiate four validators to facilitate seamless asset withdrawals for our users.
- Proposal Submission: A proposal will be submitted to include these Foundation Validators into the LSV and to remove the existing LSV. The proposal is expected to be passed on March 25th.
- Delegation Redirection: Upon the successful passing of the proposal, we will proceed with the redelegation of LSV to the Foundation's validators. This will ensure that the transition does not disrupt the network's functionality and user experience.
- Current Validators Action: Upon passing of the proposal, we kindly request that all current validators remove their nodes after redelegation. This action is vital for the smooth execution of our transition plan.
We acknowledge that maintaining decentralized participation in LSV until sunset is ideal. However, given the uncertainty surrounding when IBC assets will be significantly withdrawn (currently, the rewards for LSV are minimal), it's necessary to take actions that minimize operational costs for LSV nodes.
Operating solely through Foundation validators does introduce centralization concerns, yet it aims to minimize the potential for Byzantine faults by leveraging the entity least motivated to attack the network, thereby ensuring a stable sunset.
Understanding these considerations, if any validator wishes to support by minimizing potential attack vectors, assisting in actions that maximize potential attack costs would be invaluable. Should any entity be willing to redelegate to Foundation validators, beyond those from liquid staking, it would greatly aid in this transition.
We understand the significance of this request and do not make it lightly. Your cooperation is instrumental in ensuring the Crescent Network can pivot smoothly towards our new objectives, allowing us to maintain our commitment to innovation and value creation within the blockchain ecosystem.
Please prepare for the outlined actions and stay tuned for further instructions on the proposal submission and validation process. Your support and understanding during this transition are greatly appreciated.
Thank you for your continued partnership and commitment to the Crescent Network.
Governance Proposal - Removal of Current LSV and Onboarding of Foundation Validators
As part of the sunset of Crescent Network, the Crescent Foundation proposes the removal of the current 15 Liquid Staking Validators to minimize the potential for Byzantine faults by leveraging the entity least motivated to attack the network, thereby ensuring a stable sunset, as well as minimizing operation cost for the LSV (Who are currently running on minus revenue).
The proposal will onboard four Foundation validators to the LSV, which will run the network until the sunset date. Upon passing, redelegation of LSV will the done to the Foundation validators. The Foundation will ensure a smooth transition for users to withdraw and transfer their assets, while minimizing potential roadblocks that may arise along the way.
The LSV will remove their nodes upon passing of the proposal.