[Community Review] Pre-discussion: 11th NumbersDAO voting topic community review #380
Description
Topic: Implementing Community Validators via NUM Staking
Hello Numbers community!
Following the successful DAO vote to transition from a permissioned PoS framework to a permissionless PoS model with delegation, we are now taking the next major step—implementing community validators via NUM staking. This will allow NUM holders to play an active role in securing the network, ensuring greater decentralization, security, and long-term community participation.
Background
The recent ACP-77 proposal by Avalanche provides an example of how Layer 1 networks can implement native token staking for validation purposes. While ACP-77 is not the primary focus of this discussion, it illustrates a possible pathway for decentralizing validator participation in a way that aligns with Numbers Protocol’s long-term vision.
Reflecting that there has been growing interest in transitioning to a more open, permissionless PoS model with delegation, as discussed in the 4th DAO topic. With the migration to a permissionless PoS model with delegation nearing completion, we believe it’s time to take the next step and enable NUM holders to actively participate in network validation via NUM Staking.
With this transition, any community member who meets the staking requirements will be able to run a validator node or delegate their NUM to an existing validator. This shift will distribute network power more evenly, reduce centralization risks, and expand the utility of NUM.
This proposal aims to assess the feasibility of allowing community-driven validation through NUM staking and invites DAO members to provide insights on its potential benefits, risks, and technical considerations.
Relevant References for Further Reading:
Numbers DAO Subject 4: Migration to Permissionless PoS
Avalanche Blog: Enhancing the Sovereignty of Avalanche L1 Networks
ACP-77 GitHub Discussion
Why Implement Community Validators via NUM Staking?
The DAO’s decision to move to permissionless PoS reflects a commitment to decentralization – a core principle of Numbers Protocol. Opening up network validation to the community will ensure no single entity or small group has exclusive control, which fosters a more decentralized, community-driven network. Implementing community validators now is a logical next step to follow through on the will of the DAO and begin realizing the benefits of that decision without delay.
Enabling NUM staking for validation will also enhance network security and encourage long-term participation. When validators and delegators stake NUM, they have “skin in the game,” which incentivizes honest behavior and diligent node operation (since malicious activity could lead to penalties or loss of stake). This improves the network’s resilience and reliability over time.
Key Considerations for Implementation:
Validator Requirements.
Define what it takes to become a community validator. This includes the minimum NUM stake required to spin up a validator node, any technical requirements (hardware specs, uptime, running specific software), and the penalties for malicious activity or downtime (slashing conditions). Clear requirements ensure that validators are capable and accountable to the network’s standards.
Technical Development.
Determine the technical steps required to integrate NUM staking and community validators into the Numbers Mainnet. This likely involves developing or activating a delegated proof-of-stake module in the blockchain, writing smart contracts or chain logic for staking, delegation, and slashing, and thoroughly testing these features on a testnet. The implementation plan should include audits for security, a rollout strategy (perhaps starting with a test or limited beta of community validators), and an interface or toolset (like a staking dashboard or CLI commands) to help users stake and monitor their validators. Clear documentation and user support will be key as we roll this out.
Pros of Implementing Community Validators
Increased Security & Decentralization.
More validators and distributed stake make the network harder to attack and less likely to fail. A broad community validator base means the blockchain is secured by many participants instead of a few, strengthening overall security.
Greater Community Involvement.
NUM holders get directly involved in running and governing the network. This empowers the community, giving people a tangible way to support the project and have a say in its success. It can also increase transparency and trust, as the community sees and participates in the validation process.
Stronger Tokenomics.
Staking can improve token utility and value. As more people lock up NUM to stake or delegate, the circulating supply decreases, which could positively impact the token’s value over time. Additionally, rewards for staking create an incentive for holding NUM long-term, aligning token holders’ interests with the network’s growth and stability.
Cons/Challenges:
Validator Risks.
With a wider pool of validators, there’s a chance some may act maliciously or not follow protocol (e.g. going offline or trying to cheat). We will need to rely on the slashing and oversight mechanisms to mitigate this. There’s also a learning curve for community members to run reliable validator nodes, which could be a barrier for some.
Technical Complexity.
Moving to permissionless PoS with delegation is a complex technical endeavor. Any bugs or vulnerabilities in the staking mechanism could be costly. It will require significant development work and testing to implement safely. Additionally, the community and team will need to maintain the system (upgrades, responding to issues) which is more involved than the previous permissioned setup. There may be delays or challenges during development and deployment that need to be managed.
Final Thoughts – Your Voice Matters!
This proposal represents a critical step toward true decentralization in the Numbers Protocol Network. We are no longer debating if we should transition, we are deciding how to execute it successfully.
We encourage all DAO members to share their insights, concerns, and suggestions regarding the topic. Your input will shape the future of Numbers Protocol’s governance and validator system. Let’s build together! 🚀
⏰Review Period: Mar 21st - Apr 4th, 2025