VNP-003: Add standby validators to the network (9th May 2023)

🗳️ Governance Proposals Network Parameter Proposals
1

Title
VNP-003: Add standby validators to the network (9th May 2023)

Description

Summary

It is proposed to increase the standby validators on the network by increasing the multiple of tendermint validators which drives this number from 0.

It is proposed to change Network.Validators.Ersatz.MultipleOfTendermintValidators

  • Current = 0
  • Proposed = 0.25

Rationale

Vega is a decentralised network and it will operate more effectively if more validators participate. Adding standby validators allows additional node operators to be rewarded for ensuring that the validator set will remain full.

Standby (or “ersatz”) validators may become active in four scenarios:

  1. If a consensus validator does not upgrade to the latest version, they would be replaced until they upgraded
  2. If a consensus validator node goes down for any other reason they would be replaced until their node was back up (assuming they had sufficient stake)
  3. If a standby validator attracts enough stake to overtake a consensus validator they would replace them
  4. If the total number of validators were increased from its current level of 13 via governance vote, a standby validator would become a consensus validator and the number of standby validators may also increase

Initially, a value of 0.25 seems appropriate for this multiple, which since the number is rounded down will mean 3 nodes achieve standby status.

  • This provides enough additional incentivised nodes to ensure a pipeline of standby validators in the event the consensus validator total is increased, which should is expected (initially with a test increase to 14 in the coming weeks)
  • This ensures a few standby validators are available in the event one or more of the consensus validators has downtime
  • It is small enough that it should not significantly impact the rewards of the existing consensus validators (standby validators and their delegates earn infrastructure fees and rewards, relative to their stake, which will by definitions be lower than that of the consensus validators, to incentivise their participation in the network, though these rewards are penalised slightly relative to consensus nodes)

On-Chain Proposal

VNP-003

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