I appreciate that your starting point involves asking and answering the following questions:
-
For what role are LSPs suitable? Economic security.
-
For what role are solo-stakers suitable? Censorship resistance.
It might seem like a minor detail, but most proposals for adjusting staking mechanics fail to consider these questions from the outset, which leads to overlooking how solo-stakers can meaningfully participate in the network over the long term.
The biggest downside I see to your proposal is that it is:
- Complex
- Difficult to migrate to
- Challenging to predict second-order effects
The first two points might not have any alternative other than defining a clear specification. For the last point, I would urge more research into areas such as tokenized claims, restaking, etc.