coreum

Prop 18: Empowering Coreum’s Decentralized Future

TLDR

Top four validators hold 40% of Coreum’s voting power, risking chain halts and centralization, with the second-worst Nakamoto Coefficient in Cosmos. Smaller validators struggle financially, risking their exit from the 64-validator set. We propose redistributing team-staked tokens to reliable, community-focused validators based on governance participation, operational integrity, and long-term commitment. Short-term redistribution enhances decentralization and public image, while a mid-term delegation program builds trust. This strengthens network security, boosts the Nakamoto Coefficient, and keeps community builders in Coreum’s inclusive ecosystem.

ISSUE

The absence of an official Coreum delegation program has led to a concentration of team-staked tokens among a small group of validators, some of whom contribute minimally to community development, frequently miss upgrades, and in some cases, have been jailed or slashed. According to Validator Info, the top four validators currently control 40% of the total voting power, giving them the ability to block any governance proposal from passing. Additionally, if these validators miss a chain upgrade, it could result in a chain halt, threatening network stability. This concentration is further highlighted by Coreum’s Nakamoto Coefficient, which is the second worst in the Cosmos ecosystem, indicating a high degree of centralization. At the same time, smaller validators, many of whom actively contribute tools, provide relaying services, and engage with the community, remain near the bottom of the set with only a tiny fraction of total delegations. In fact, the top validator has the same voting power as the bottom 32 combined. These operators struggle to cover the costs of maintaining their infrastructure, despite months of consistent support for the network. This growing imbalance threatens to drive community validators out of the ecosystem, further shrinking the already limited active set of 64 validators and undermining Coreum’s decentralization and credibility as a community-driven blockchain.

PROPOSAL

To reinforce Coreum’s decentralization and strengthen its standing as a fair, innovative project, we propose a voluntary, team-led initiative to rebalance voting power by redistributing a portion of team-staked tokens to active, reliable smaller validators within the active set. Eligible validators should meet transparent, merit-based criteria, such as:

  • Governance Participation: Demonstrated involvement in governance proposals and voting.
  • Operational Integrity: No recent jail or slashing events, ensuring fund security and validator reliability.
  • Proven Commitment: At least one year of continuous presence in the active set, reflecting long-term engagement and resilience.

RECOMMENDED ACTIONS FOR CONSIDERATION

To align with Coreum’s vision of a decentralized and community-driven blockchain, the team could consider short-term and mid-term steps to address these challenges. As a short-term action, redistributing a portion of team-staked tokens to reliable, community-focused validators could quickly enhance network decentralization and demonstrate Coreum’s commitment to fairness, boosting its reputation as an inclusive ecosystem. In the mid-term, establishing a formal delegation program with clear, merit-based criteria could further solidify trust in Coreum’s governance model, attracting more community builders and strengthening its public image as a leading blockchain project. These steps could position Coreum as a model of decentralization in the Cosmos ecosystem, fostering greater community engagement and long-term network resilience.

SUMMARY

This initiative will enhance Coreum’s decentralization by reducing reliance on the top validators, who currently hold disproportionate control over the network. By redistributing team-staked tokens to committed, community-driven validators, the proposal will improve network security, mitigate the risk of chain halts due to missed upgrades, and boost Coreum’s Nakamoto Coefficient. Furthermore, it will incentivize community builders to remain active in the ecosystem, fostering a more resilient and inclusive blockchain network. Other major Cosmos chains, such as Cosmos Hub, Akash, and Celestia, have implemented delegation programs, which are widely regarded as best practices for promoting decentralization and community engagement. By supporting smaller validators, this initiative will also drive builders' engagement, encouraging the development of more decentralized applications on Coreum, which will strengthen the ecosystem and benefit Coreum as a whole.