Try Quests to earn cryptoCosmos & Delegation
📑INTRODUCTION
Let's explore movement of delegation on Cosmos.
What is Cosmos network ?
Cosmos is a network of independent blockchains connected by the Cosmos Hub, a proof-of-stake (PoS) blockchain based on Tendermint, a byzantine fault tolerant (BFT) consensus protocol. The annual yield for staking ATOMs, the native cryptocurrency of the Cosmos Hub, is currently 12.7% with a total of 131,700,319, or 55.3% of the total ATOM supply staked as of May 5, 2019.
QUESTIONS
When delegators un-stake from one validator and move to another, is there any pattern to where they re-stake? Are users more likely to re-delegate after their validator votes in a way they disagree with? Do they re-align their stake with validators whose values reflect their own?
How do validator votes change over the course of a proposal? Share any interesting voting statistics you find.
Examine any voting propositions here (example: Prop 82) as a use case to explore these questions.
What is a delegator?
People that cannot or do not want to operate validator nodes can still ==participate== in the ==staking== process as delegators. Indeed, validators are not chosen based on their self-delegated stake but based on their total stake, which is the sum of their self-delegated stake and of the stake that is delegated to them. This is an important property, as it makes delegators a safeguard against validators that exhibit bad behavior. If a validator misbehaves, their delegators will move their Atoms away from them, thereby reducing their stake. Eventually, if a validator's stake falls under the top 125 addresses with highest stake, they will exit the validator set
✅OBSERVASION
- According to the chart of Total ReDeligate Amount, the first rank is Binance Staking with 10 million ReDeligate, and the second source providing this amount is SG-1 with 3.6 million ReDeligate.
- The destination of ReDelegates with 10,000 is related to Imperator.co, which has the highest transfer of redelegates there from the Comso network.
- According to Validators, the most destinations of ReDelegates are for two Coinbase Custody, Kraken, both with more than 9 million, this volume was done by the activity of validators.
✅OBSERVASION
- According to the Cosmos netwrok proposal validators voter count chart, the highest number of votes belongs to proposal number 82 with 156 votes, and in second place is proposal 83 with 144 votes.
- According to Voters behavior over time, most voters have voted only once, including 2781 voters, and at least 141 people have voted twice.
- And these people who have voted twice have changed their vote from yes to no, that is, 27 validators and 25 other people have changed their vote from yes to ABSTAIN.
✅OBSERVASION
- According to the graph of validators vote on proposal No. 82, the number of equal votes is 3172 and unequal votes are 2494.
- Using the data related to proposal 82, it can be seen that the validators who voted had not staked Atom Token before, which includes 54.7 thousand voters and the rest 3649 people had staked Atom Token.
📑CONCLUSION
Problem Definition
Prevent penalizing delegators for validators' faults and help delegators secure the network with confidence.
Downsides: \n delegations dont help decentralize the network but slashing mechanism and validator specific rewards are anyway counterintuitive and doesn't help decentralization by delegation.
It is necessary to implement delegations independent of validators.
An abstract implementation is as follows,
- introduce delegation module, different from staking module.
- on delegation, transfer delegated amount from delegator address to reserve pool in exchange of equivalent governance voting power.
- on de-delegation, transfer delegated amount from reserve pool to delegator address in exchange of equivalent governance voting power.
- incentivize delegations different from validator staking rewards since delegators do not participate in block mining.
- On validator slashing, do not slash stakes in delegation pool.
