Unavoidable facts
- running a validator without a cloud provider is not scalable or cost efficient at the individual level and is operationally complex (eg. maintain uptime, avoid slashing). It’s not realistic IMO that this goes away within the next 10 years. Large and reliable cloud infrastructure has an overall positive impact on network performance for all participants. They’re economically driven to do so.
- a system such as MEV, has already caused centralization of clients to Geth, and adds substantially to expected rewards. running an MEV validator post merge is the economically rash decision
Current state of slashing
- economically very operationally complex to run and costly and the rewards are so low it doesn’t even come close to covering the operating costs
- depending on how many slashers running, one or two concurrent major cloud outages could potentially create windows in the network where slashing is not enforced. or if the identity of all the slashing monitors on the network is known, a targeted attack could also be a risk
Instead of trying to solve decentralization diversity at all levels, I propose segregating less operationally complex, but still economically important parts of the system to allow for greater decentralization of power.
Here are some systems we could adjust, to start the discussion.
- MEV (post merge, assumes knowledge about flashbots architecture)
- running builders and relayers of MEV requests via flash bots post merge can be run by individuals and requires trust of actors in the chain.
- Slashing/Enforcement
- can be expanded to verifying trust of MEV eg slashing bad relay and builder participants, and grow to enforce any new systems (unknown needs of the future)
- if the rewards mechanism is changed and more slashers are run then a “slasher” can be assigned a network section (a range of validators) to watch per given epoch (just one example), instead of having to monitor every validator. or can be assigned a different security mechanism
MEV and slasher components could require a less onerous Eth staking amount, or could require staking some new ethereum governance token created/ICO-ed to allow new and smaller participants to play a vital part of the system as well as derive rewards.
Please share thoughts/concerns/suggestions. Hope to hear from you all!