Following proposal 26 (Terra Station), many validators have been reporting about missing votes recently despite using the offical recommended data source and feeder. The problem seems to be that missing any reward band for any whitelisted denom causes the miss counter to go up – and the current available feeder implementations can generate variances that make it difficult to not miss. As the number of currencies increases, the probability of getting slashed by voting outside the reward band of AT LEAST ONE denom increases sharply. The current scheme incentivizes validators to abstain or collude / come to consensus on one price feed and oracle implementation lest they get slashed. We must consider:
- A short-term solution to make sure validators don’t get slashed too easily to be rolled out within 2 weeks, in the form of a governance proposal
- A long-term improvement for more easily accommodating new stablecoins for the next iteration of mainnet (we also need to address disincentivizing ABSTAIN votes)
- change oracle reward band params
- change oracle missed votes tolerance
- experiment with miss counter per denom
Let’s discuss oracle improvement ideas here. I will provide some more detailed oracle analysis in a later post.