MIP.1: Relaxation of SAM Constraints

General
,
#1

Abstract:

Marinade proposes to relax certain constraints within the Stake Auction Marketplace (SAM) to enhance accessibility and participation for a broader range of validators. Specifically, we aim to adjust Solana’s ASO concentration constraint from 20% to 30% and remove both the Marinade ASO and country concentration constraints entirely.

Background:

The Stake Auction Marketplace (SAM) is a platform that allows validators to compete for stake delegations from stakers by bidding mechanism. It operates under a set of constraints designed to promote decentralization and prevent over-concentration of stakes in specific geographic regions. Currently, the following constraints are in place:

  • Solana’s ASO Concentration: Limits the percentage of Solana’s TVL overlap among validators in specific ASO to 20%.
  • Solana’s Country Concentration: Limits the percentage of Solana’s TVL overlap among validators in specific country to 30%.
  • Marinade’s ASO Concentration: Limits the percentage of Marinade’s TVL overlap among validators in specific ASO to 20%.
  • Marinade’s Country Concentration: Limits the percentage of Marinade’s TVL overlap among validators in specific country to 30%.

While these constraints have effectively maintained a balanced network, they have also limited participation and accessibility for some validators and stakers.

Proposed Changes:

  1. Increase Solana’s ASO Concentration Constraint:
    • Adjust the Solana’s ASO concentration constraint from 20% to 30%.
    • This will allow some previously ineligible auction winners to get a share of stake, promoting competitiveness within the auction.
  2. Remove Marinade’s ASO and Country Concentration Constraints:
    • Eliminate the specific constraints related to Marinade’s ASO and country concentrations.
    • This simplification will make SAM rules more straightforward and make the marketplace more accessible to validators regardless of their geographic location.

Rationale:

These adjustments are a direct response to community feedback requesting more flexibility within the SAM. By relaxing these constraints:

  • Validators will have increased opportunities to receive stake delegations, potentially boosting influence within the network.
  • Stakers will benefit by auction being more competitive.

Impact Analysis:

  • Operational Efficiency: Simplifying constraints will streamline the stake delegation process.
  • Market Accessibility: More validators can participate effectively in the SAM, fostering a more competitive and dynamic environment.
  • Decentralization: While constraints are relaxed, the overall stake distribution is expected to remain sufficiently decentralized due to the inherent competitiveness of the marketplace and due to caps on how much of the TVL each validator can receive.

Conclusion:

By adjusting these constraints, Marinade Finance aims to make the Stake Auction Marketplace more inclusive and efficient. We believe these changes will benefit validators, stakers, and the overall health of the Marinade ecosystem. We welcome feedback and discussions from all stakeholders to refine this proposal further.

#2

This is just calling for more sybils. sybils.csv · GitHub
We at Hanabi Staking identified a group of sybils not long after Marinade started selling stake, and at that time a few members of that group wasn’t eligible for stake due to the ASO concentration constraint. More info on hanabi.so :: Marinade Stake Selling.
So Marinade is really just trying to funnel profits to sandwichers (because they get a 50% split of the bids charged) at the expense of innocent users of Solana.

#3

The ASO constraint is useless.

People can (and ALREADY DO) create their own ASOs (but routed to the same old DCs) for the sole purpose of getting around ASO constraints. SWIP data is akin to “trust me bro”, and it is ludicrous to use such a thing in a delegation strategy.

#4

If you’re going to say this leads to more sybils. You should at least explain why.

This is just getting rid of a pointless constraint

#5

Keep the ASO contraint until we have something more robust to combat the sybils then.

1 Like
#6

I am pleased to announce that this proposal has been approved, and the specified changes will take effect in epoch 696. Thank you for your feedback and active participation in the voting process.