Polkadot plans to make its validator requirements even stricter through Referendum 1890 by raising the minimum validator self-bond to 10,000 DOT.
The proposal seeks to ensure network security and prepare the protocol for further staking improvements.
Background on Polkadot Referendum 1890
Referendum 1890 will make it necessary for validators to stake at least 10,000 DOT. Right now, the minimum validator self-bond is equal to zero, which allows smaller validators to join the network using Polkadot’s NPoS protocol.
If passed, the amendment will have the following effects:
- New validators will have to start their operations having at least 10,000 DOT.
- Existing validators with balances below this amount will stay active for some time, but they will risk getting chilled or kicked out of the active validator set.
- The changes will be implemented in Polkadot’s staking configuration system.
The proposal can be called a critical step for the further development of Polkadot staking features.
Why Does Polkadot Want a Higher Validator Self-Bond?
The main objective of the proposal is to increase network security and improve the incentives for validator operators.
Polkadot requires validators to help maintain the security of the Relay Chain and perform transaction processing tasks. Validator nodes that have higher self-bonds have greater monetary incentives to follow all the network rules, reducing the risks associated with possible malpractice.
At the same time, according to the discussion, the network needs to introduce new staking features such as:
- Unsplashable nominators;
- Fast unbonding procedures;
- Other improvements.
To implement this feature, it is necessary to ensure that validators have sufficient skin in the game, as suggested by the community.
Effects on Polkadot Validator Nodes
The new requirement of 10K DOT per validator might have considerable implications for smaller validators with low self-bonds.
For instance, it will become harder for validators with a small number of staked tokens to operate and sustain their position in the validator pool. Some members of the community think that this might enhance validator node quality, while others believe that this will limit decentralization.
Nonetheless, even after this change, Polkadot will likely still have one of the biggest staking systems in the crypto world due to the large number of bonded tokens.
For DOT Holders and Nominators
This proposal might positively impact the reliability and security of the staking infrastructure.
Polkadot’s staking features allow any token holder to become a nominator and earn rewards for participating in network governance. As the result, this amendment could create a better environment for users who stake their assets.
But if the validator set becomes too small due to new restrictions, it might negatively impact the decentralization level of the staking system.
Polkadot Roadmap and Future Staking Plans
This amendment demonstrates the current goals of Polkadot concerning staking development.
In addition to this change, Polkadot constantly works on increasing scalability, interoperability, and other features of its infrastructure, which will benefit staking.
During ongoing governance discussions, the results of this referendum might define the further evolution of the validator set.
