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5 months ago
Fun fact: Almost 70% of $SOL validators are subsidized by @SolanaFndn. @0xMert_'s team estimates* that if SF stopped providing assistance, over 50% of validators would struggle to operate profitably.
Imagine the FUD $ETH would get if the @ethereumfndn had to subsidize most t.co/Uc2w4tDWT7 t.co/YZLTcDL27e 2VFK9h3fBrVJNficF6Yu4xkADhL4Mt7uFiSZhRpepump2VFK9h3fBrVJNficF6Yu4xkADhL4Mt7uFiSZhRpepump
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5 months ago
How does that fix the underlying issue of validator profitability?
I can only assume that would cause further reduction in validator count, or in other terms, further centralisation of validator consensus, no? 2VFK9h3fBrVJNficF6Yu4xkADhL4Mt7uFiSZhRpepump2VFK9h3fBrVJNficF6Yu4xkADhL4Mt7uFiSZhRpepump
it doesn't fix validator profitability (at least not directly, though fewer validators would mean more marginal rewards for each existing one and hence more of an incentive to join unsubsidized)
but it does make the picture more clear, which is necessary to make the correct 2VFK9h3fBrVJNficF6Yu4xkADhL4Mt7uFiSZhRpepump2VFK9h3fBrVJNficF6Yu4xkADhL4Mt7uFiSZhRpepump
not to mention, you do not need the validator to be profitable for you to run one — it's a business expense item; if you need stronger security guarantees as a stable issuer for example, you will run a node regardless 2VFK9h3fBrVJNficF6Yu4xkADhL4Mt7uFiSZhRpepump2VFK9h3fBrVJNficF6Yu4xkADhL4Mt7uFiSZhRpepump
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5 months ago
The number is probably closer to 90% if when you count Multicoin in. 2VFK9h3fBrVJNficF6Yu4xkADhL4Mt7uFiSZhRpepump2VFK9h3fBrVJNficF6Yu4xkADhL4Mt7uFiSZhRpepump
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5 months ago
The thing I want to understand would be how exactly this MAV/Nakamoto Coefficient would change if Solana Foundation pulled all their subsidies and threw them behind a single validator that they control.
But I don't know how the subsidies are distributed🤷♂️ t.co/3qYaL7HvRs 2VFK9h3fBrVJNficF6Yu4xkADhL4Mt7uFiSZhRpepump2VFK9h3fBrVJNficF6Yu4xkADhL4Mt7uFiSZhRpepump
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5 months ago
hmm, full node is sufficient for security guarantees though right? without vote cost reduction, it seems too expensive to run that just for security.
or do you mean validators are useful even in those cases because of things like swqos, turbine 1st layer access etc ? 2VFK9h3fBrVJNficF6Yu4xkADhL4Mt7uFiSZhRpepump2VFK9h3fBrVJNficF6Yu4xkADhL4Mt7uFiSZhRpepump
| Coin |
Market Cap 24h Vol |
Price 24h |
Vol/MC |
ATH % |
Trade |
|---|---|---|---|---|---|
Ethereum
ETH
|
525.10B$
45.08B$ |
4.33K$
4.71% |
8.58% |
4.88K$
-11.09% |
|
Solana
SOL
|
101.01B$
6.13B$ |
186.95$
4.81% |
6.07% |
293.31$
-36.22% |
