Vitalik posted: Support decentralized staking through more anti-correlated incentives
2024-03-27 01:04
Odaily News Ethereum co-founder Vitalik Buterin posted in Warpcast: Are validators in the same cluster (such as the same trading platform, the same user) more likely to miss certification at the same time than unrelated validators? If so, can we Adjust rewards to support decentralized staking? Maybe. In addition, Vitalik published an article Supporting decentralized staking through more anti-correlated incentives, which mentioned that one strategy to incentivize better decentralization in the protocol is Penalty correlation. That is, if a participant misbehaves (including unexpected circumstances), their punishment will increase as the number of other participants who misbehave at the same time (as measured by total ETH) increases. The theory is that if you are a large player, any mistakes you make are more likely to be replicated across all the identities you control, even if you spread your assets across many nominally independent accounts. This technique is already used in Ethereum’s slashing mechanism. However, edge-case incentives that only arise under highly specific attack scenarios may never arise in practice and are therefore insufficient to incentivize decentralization. This paper proposes extending similar anticorrelated incentives to more ordinary failure cases, such as missing a proof, a mistake that almost all validators make at least occasionally. The theory is that larger stakeholders, including high net worth individuals and staking pools, will run many validators on the same internet connection or even the same physical computer, which will result in disproportionately related failures. Such a staker could always set up a separate physical setup for each node, but if they end up doing this, it means we have completely eliminated economies of scale for participants.
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