Hello Terra Community, We are Ellipti Labs and currently developing Terra-Oracle for some period.
Problem Status quo
Terra seems to have a large number of validators compared to the development situation, and it seems that each validators doesn’t understand what they contribute on. In the long run, this situation is likely to lead to worse situations in the event of network outliers associated with free riding, depending on interests. Since it wouldn’t be sustainable to have a large number of validators on early stage, We’ve written an potential problems below.
- Terra has a large set of validator set considering the development status quo, We don’t find why Terra requires large set of validator in this current period.
- ‘Santa’ incentivizes Validators to run a Terra node. No offense, but we seem there are validators with less contribution on Terra increasing.
For feasible solution what we thought of is,
- To give a good example of governance, I would like to take Factom as an example. Factom is a project that adds a data layer to the Bitcoin blockchain with a long history, so I assume that Terra can also use as its governance as a reference for validator selection.
- Factom set the initial Validator set conservatively and decided to scale the validator set as the network grew. Initial validator set consisted of: 1. Major investors and major token holders 2. Validators with high development contributions.
- As the network grows, an n number validators are added to the validator set every quarter. With the condition that they show visible and measurable contributions to the network, the foundations guaranteed a certain amount of rewards for each validator.
- Application form is created to determine each validator’s plans and commitments regarding their contributions. On-chain governance decides whether to accept the validator or not.
- Ability to track each contributor’s roles, contributions, and progress.
- Reduce the amount of ‘free-riding’ rewards, Increase incentives for contributors
- Increase responsibility and accountability of each validators as stewards of the network
If you have many respondents who agrees, and willing to contribute Please leave comment below us. We are willing to write an updated draft version of governance proposal further. If you have any questions, please feel free to contact us.