We are Akik Takat, currently ranked 12, with 2.82% of voting power. We run a validator, and also participate in the implementation of Regen Network and the Community Staking DAO.
The active validator set has the following distribution of stake (linear scale):
In the Aneka explorer, all the inactive validators that have stake are listed as “last seen 2 [or 3 or 4] months ago”. Is this a bug in the explorer? Or did the inactive validators with stake really turn off their machines a few months ago?
If the current proposal passes, increasing the active set to 75 validators, and those inactive validators that Aneka hasn’t seen in months come back online with the same amount of stake, then the distribution looks like this:
Spreadsheet for whomever wants to use it:
Staked tokens have passed 67% (currently 68.06% bonded, according to Aneka) and inflation is going down. I think inflation decrease and fluctuating REGEN price in USD will have a bigger impact on validator finances than increasing the validator set.
The current veto power is the top 6 validators (35.74%) and the current passing power is the top 18 validators (66.94%) (maybe there are more technical terms for those thresholds). This will probably not change just by increasing the validator set, therefore I think it is not true that increasing the validator set will increase network decentralization and therefore network security. What do you think?
What kind of financial analysis is possible? In broad strokes, I see that the inactive set has 0.18% of current stake. That seems insignificant in terms of diluting the validator rewards and commission. What @kamuelbob says about AKT demand increasing when the validator set increased… if that happened, then maybe the value of REGEN would increase by enough to balance out the slight dilution of rewards. If rewards were distributed equally among validators regardless of stake (like Desmos proposes), then increasing the validator set by 50% (to 75 validators) would have a predictable and significant impact on validator rewards. But with stake-based rewards, and with stake distributed unequally as it is, I think there are too many unknowns to do a useful financial analysis. Also, delegator decisions are often based on reputation and relationships. Maybe someone has staked 50,000 REGEN with an active validator, but they’re waiting for their friend’s validator to enter the active set, and then they’ll redelegate to that newly-active validator. So, validator rewards are based on these unpredictable human decision. What do you think?
The current cost to get into active validator rank 50 is apx 172,000 REGEN (@ USD $2.15/REGEN = USD $369,000) and to get to rank 40 is 479,000 REGEN (@ USD $2.15/REGEN = USD $1,029,850). If the active set increases to 75, then we don’t know how quickly this will change. Will there be demand for REGEN in order to delegate to the new validators? Will the new validators mostly get re-delegations? We don’t know.
What’s the difference between this versus the community pool?