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V God proposes a new plan Redesigning the POS penalty mechanism

Date:2024-04-22 18:11:31 Channel:Crypto Read:
In the field of cryptocurrency, Ethereum has always been a high-profile platform. However, as concerns about its increasing concentration surfaced, Buterin (Ethereum founder Vitalik Buterin) proposed a disruptive new plan: redesign A penalty mechanism for POS (Proof of Stake) to solve the centralization problem of Ethereum. This move will have a profound impact on the entire cryptocurrency world, so let’s dive into this innovative path.
In traditional POS systems, participants in the proof of stake determine the probability of receiving block rewards based on the amount of currency they hold. However, this mechanism can easily lead to a situation where the rich get richer, exacerbating Ethereum’s centralization problem. Buterin’s new plan aims to break this inequality and achieve a more fair and decentralized network by redesigning the POS penalty mechanism.
First of all, the plan proposed by V God is based on the principle of combining incentives and punishments. He suggested introducing a mechanism to penalize accounts that hold large amounts of currency and are inactive for a long time, thereby motivating more participants to actively participate in the construction and maintenance of the network. The introduction of this penalty mechanism will help reduce the control of large players on the network and promote wider participation.
Secondly, Buterin’s plan also includes the readjustment of the POS reward mechanism. He suggested linking rewards to the activity and contribution of participants, so that those participants who make positive contributions to the network will receive more rewards, thereby enhancing the decentralization of the network. This incentive mechanism will attract more people to participate in the Ethereum network and promote the development and growth of the network.
In addition, V God also put forward suggestions for strengthening community governance. He believes that the future of Ethereum should be decided jointly by the community, rather than monopolizing power by a few people. Therefore, he suggested establishing an effective community governance mechanism to give all currency holders the opportunity to participate in network decision-making and ensure that the development direction of the network is in the interests of the entire community.
In general, the redesign of the POS penalty mechanism proposed by Buterin is a powerful response to the hidden concerns of Ethereum’s centralization. By combining incentives and penalties, re-adjusting the reward mechanism and strengthening community governance can effectively promote the decentralized development of the Ethereum network and allow more participants to benefit from this open and transparent platform. This innovative move will bring new vitality and opportunities to the entire cryptocurrency field. Let us wait and see to witness the power of this change.

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Coin Circle (120bTC.COM) News: The centralization risk of Ethereum PoS staking has always been Vitalik
An important issue Buterin is concerned about. When he came to Taiwan to participate in ETHTaipei last week, he proposed "Rainbow".
Staking" concept hopes to increase the participation of individual pledgers, thereby improving the centralization concerns of the Ethereum network.

Earlier today, Vitalik posted on Farcaster to discuss this issue again: Are validators in the same cluster (such as the same exchange, the same user) more likely to miss the proof at the same time than unrelated validators? If so, can we adjust rewards to support decentralized staking? Probably yes.

 Vitalik proposed to encourage Ethereum decentralization through "punishment-related behavior"

At the same time, Vitalik published a new article "Supporting decentralized staking through more anti-correlated incentives" on the Ethereum Research Forum, proposing a strategy that hopes to encourage better decentralization by "punishing related behaviors."

It is proposed that if a validator misbehaves (including unexpectedly), their penalty will increase with the number of other validators who misbehave at the same time as them (measured by the total amount of ETH held).

In addition, Vitalik clearly defines two situations for common failure situations, such as "missed proof", which almost all validators make occasionally: (i) network failure during normal operation, and (ii) offline or long-term failure.

   (i)Fumbles: When the validator misses the proof in the current epoch but proved correctly in the previous epoch

   (ii)Misses: When the verifier misses the proof in the current epoch and also missed the proof in the previous epoch

 A validator in a cluster has a higher chance of missing a proof than a single validator

The figure below Vitalik calculates the expected and actual results of common failures, including the data of "fumbles" and "misses", and "SSfumbles" and "SSmisses" specifically for the single time period (slot) data set.

The results show that two validators in the same cluster are significantly more likely to miss attestations at the same time than two validators in different clusters. This answers the question Vitalik asked on Farcaster above, so perhaps we can adjust rewards to support decentralized staking.

 Penalty is proportional to the number of validators that missed the proof

Next, Vitalik proposed the concept of a penalty rule to be applied to decentralized staking scenarios.

“The “excess” penalty scheme is based on a simple assumption: in each slot, if the number of validators who miss proof exceeds the average over the past period, the penalties for all validators in that slot should increase. "

Vitalik showed the impact of four different penalty schemes on large, medium, small and all validators. The results show that the "excess" penalty scheme can reduce the advantage of large groups over small groups, thereby promoting a fairer and decentralized staking system. .

The proposal is currently under ongoing discussion, but judging from Vitalik's repeated possible solutions, Ethereum is indeed gradually facing the problems that may be caused by over-centralization of ETH staking.

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