Lido is known for applying similar missions to every blockchain in which they participate. It aims to make staking secure, decentralized, and simple for its users. Every network has specific functions that make it a good validator. Lido plans to introduce a new way of creating its validator set on Solana. However, a solid and sustainable set must follow these three principles.
Solana Beach stated that currently, there are about 1788 validators on the Solana network. It gives a Nakamoto Coefficient value of 25, which implies all the top 25 validators have control over adequate staked SOL to attack its network. This staking pool program intends to distribute more evenly spread stakes across the Solana network.
However, to develop a decentralized set, one must follow certain rules:-
- Increase autonomous entities that develop as well as maintain the network’s infrastructure.
- Increase the censorship resistance by decreasing the stake’s concentration in the same jurisdictions and data centers.
- Reduce stake distribution to super minority validators.
It is important to consider an operator’s long-term sustainability and ability to provide funds for new equipment and ensure secure and highly infrastructure-taking infrastructure. Operators have to manage risks, maintain nodes, ensure the highest uptime possible, and troubleshoot errors more often.
A validator’s set must be made attractive by following the rules here:-
- Operators should earn sufficient revenue to develop a reliable and profitable staking business.
- Validator nodes should be allowed to participate in different subsidy programs, for example, SFDP.
- Operators must receive sufficient marketing support to attract more stakes.
The performance metrics of validators are extremely important for developing the Solana ecosystem. The more sustainable, cheaper, and faster the network is, the simpler it is to bring more partners, investments, and DeFi/P2E/NFT project developers. It leads to the development of a more sustainable product and community ecosystem.
The transaction speed for DeFi users is crucial; the ability to provide detailed information on large coats for oracles; an improved user experience for developers; bigger rewards; and greater SOL price growth potentials for stakers.
To make a validator set more sustainable and productive, follow the rules here:-
- Operators should understand the importance of metrics and learn how to compare their performances on the network.
- Operators should be notified regularly about various software updates.
- Operators should learn how to upgrade their software without downtime.
To make Lido on the SOL validator set more productive and stable, the platform guarantees the following:-
- Publish its vision of the performance metrics of a good validator.
- Make public dashboards to display validator metrics.
- Make a system to provide alerts for issues with the validator‘s performance.
- Conduct education and share the best practices for the management of validators in Solana.
To conclude, about 384.5 million Solana tokens are staked on the network. Out of this, only about 9.7 million SOL has been distributed among staking pools. The Lido partnership with P2P and stSOL, ever since its launch, has been greatly involved in the TVL development in partnership with Lido through integration, incentives, and much more.
There is great potential witnessed in the development of staking, and it will increase the speed of economic activities in the decentralized network. The new strategy will include three main principles:-
- To completely decentralize the validator‘s network by simplifying entry and adding more validators from other ecosystems.
- To make it economically attractive by dropping a 100% node and getting marketing support via Lido.
- To ensure better functioning of the validator’s set and smooth transactions across various apps running on the network.