When will we be able to switch staking services without

Question

MultiversX - Community

kyle wylie

When will we be able to switch staking services without

unstaking?

#blockchain #cryptocurrency #elrond #english

0

13.04.2022

3 ответов

21 просмотр

kyle wylie Автор вопроса

Classic
There is a reason why the unstaking period exists....

i understand that, but it would be nice to switch providers without missing rewards.

0

13.04.2022

Classic

kyle wylie
i understand that, but it would be nice to switch ...

No that wouldn't be nice If a provider increases it's fee from 10% to 15% for example, everyone staking at that provider will instantly switch the provider. That will make the provider loose the majority of its delegators in an instant! Why is that an issue? Because the best alternative provider, so someone with less fees, will get all the delegators Which means this provider is gaining huge chunks of the entire delegated EGLD Now if this provider that is already gaining delegators decides to charge the fewest fees from ALL providers, everyone will want to switch to specifically that single provider What's the consequence? The consequence is: that single provider is able to get huge chunks of all delegated egld for himself. If he is lucky, almost all people who delegate EGLD will switch to that provider If more than 50% of all EGLD is delegated at a single validator, that validator has the power to manipulate the entire blockchain network! Basically a 51% attack And we do not want that! Because the 10 day period exists, you wouldn't unstake just because your current validator increases their fees, because you would be missing out on rewards for 10 full days. Besides that you can't do anything with your EGLD while it is being unstaked No one would unstake just because the fees slightly increase But everyone would switch providers if provider switching didnt have an unstaking period

0

13.04.2022

Classic · Accepted Answer

Classic

There is a reason why the unstaking period exists. It prevents panic selling It discourages unstaking, which secures the network by making sure there are always enough people staking And since it discourages unstaking, it also helps to grow the percentage of EGLD staked

0

13.04.2022

210 похожих чатов

When will we be able to switch staking services without

3 ответов

Похожие вопросы