Shade Protocol Community,
The stkdSCRT validator set currently includes 21 validators, each receiving 4% of the SCRT supply liquid staked via stkdSCRT other than SecureSecrets. Given the reduction in the current Secret Network validator set, Shade Protocol is proposing to reduce the number of validators in the stkdSCRT validator set. The details of the suggested stkdSCRT validator set consolidation are below:
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Reduce the number of validators in the stkdSCRT validator set from 21 to 10.
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Increase the percent of SCRT staked to validators as follows:
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SecureSecrets: 20% → 64%
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All other validators in set: 4%
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The validators selected to be included in the consolidated stkdSCRT validator set will be prioritized based on present contributions to Secret Network infrastructure and Shade Protocol product suite. The proposed increase in delegation to SecureSecrets is to help cover the cost and maintenance of Shade Protocol product suite infrastructure.
Additionally, Shade Protocol suggests that the redelegation frequency be updated two times per year, instead of four times per year. This decrease in redelegation frequency is suggested as a result of the decrease in validators included within the stkdSCRT set.
With the proposed consolidation of the stkdSCRT validator set, there is a lower likelihood of validators in the set being jailed and subsequently lowering the effective yield rate during their time jailed. However, if a jailing event does occur, the effective yield rate would be impacted more than if there were more validators in the validator set. Given the trust and performance record for the validators that would be remaining in the consolidated stkdSCRT validator set, Shade Protocol believes the risk tradeoff is appropriate.
The Shade Protocol team is incredibly thankful for the continued usage of stkdSCRT over the past 3.5 years, and is excited for these proposed changes to improve the sustainability of the protocol.
Best Regards,
Shade Protocol Contributors