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Discussion on adjusting Nomination Configuration

paradox
2 years ago

Dear community,


I would like to engage you in discussions related to adjustments of the following staking parameters:


  1. Increasing the minimum number of tokens to create a nomination pool from 200 DOT to 500 DOT
  2. Increasing the bond size required to become a direct nominator from 100* DOT to 200 DOT
  3. Enabling fast unstake on Polkadot
  4. Increasing the number of validator candidates from 1200 to 1500 in anticipation of an increase in the active set of validators

**The threshold for direct nomination**

At the time of writing, the minimum bond size for an active nominator is `293.7 DOT`. This number is quickly increasing leaving a staggering `23,000+` inactive nomination bonds. This increase has also resulted in some nomination pools becoming stagnant as the requirement to create a nomination pool is `200.00 DOT`. To address these issues I am proposing that we increase the minimum bond size for a direct nominator to `200.00 DOT` and to also enable fast unstaking on Polkadot. This combination of actions would discourage creation of new nominator bonds which would not reasonably be eligible for active nomination. Fast unstaking would then allow some of these `23,000+` inactive bonds to quickly reclaim their funds.

I am also suggesting that we increase the minimum number of tokens to create a nomination pool to `500 DOT`. This would guarantee that new pools would be participants in staking. It is important that nomination pools provide stakers with a route for active staking and we should support this with adequate thresholds.

As we're issuing adjustments to the staking configurations, I would like to take the opportunity to also increase the number of validator candidates from `1200` to `1500` in anticipation of an expanded validator set.

Regards,
Will | Paradox

Comments (4)

2 years ago

Increasing the bond size required to become a direct nominator from 10 DOT to 200 DOT

The correct current limit is 100 DOT.

I would like to expand a bit further on the points as well, add one, and provide example Calls.

  1. Pool Create Bond to 500 DOT: I agree with all the points from @paradox. I just want to add that we currently don't have a way to enforce this 500 DOT on the existing pools. The technical issue related to it is here.

  2. Direct Nomination Bond to 250 DOT: The current 100 Limit is far below the dynamic threshold to be an active threshold. If we maintain this value to close to the dynamic limit, the better. Read the previous related proposal for more info. The current dynamic limit is almost at 300 DOTs, and it is reasonable to speculate that it will only ever get more based on more demand.

A side thought that comes to mind here is that we can actually automate this, and let the nomination bond limit to always be eg 80% of the "minimum active nominator bond". But, for the time being, I personally don't mind the manual steps needed to check and update this value, as it pushes myself and a few others to keep a constant (human!) eye on the network status.

  1. Fast Unstake: Has been well tested in Kusama, and is ready to go 🚀. Read about fast unstake here or here.

  2. 1500 Max Validator Intentions. This is one of the remaining legacy parameters in the system. Basically, the number of validator intentions are still limited (unlike nominator intentions that are unbounded). Work is undergoing to fix this, but in the meantime, the network should maintain a manual upper bound on the number of validator intentions that it wishes to have. Historical data shows that with 300 active validators, Polkadot had short of 1000 validator intentions. A max of 1500 validator intentions should therefore be enough.

Should the network reach 1500, nothing drastic will happen, but a new proposal will be needed.

  1. 256 Pools: Given the successful launch of Pools so far on Polkadot, and the network having almost the full list of 128 pools, I propose doubling the maximum count again to 256.

The end goal of the number of pools to equal to all nominator seats, or even more! There is no technical boundary in having many many many pools.

2 years ago

All that said, this is the required Call to execute all of this.

The Root origin is required for all of the operations:

  1. Fast-unstake pallet.
  2. Staking pallet.
  3. Nomination pools pallet.

Therefore, the batch going in with Root should work for all of them.

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