Hello, SSV Family -
I’m interested in your thoughts and feedback on a change I’ve been mulling over.
Currently an SSV operator can reduce their fee by as much as they want, but can only increase their fee by 10% per month. This limit is to help prevent unscrupulous operators from suddenly increasing their fee dramatically and potentially draining their clients’ SSV deposits.
At the low end, however, I think this cap is causing more problems that it solves.
The most obvious example is any operator with a 0 SSV fee. They cannot ever increase their fee at all, because 10% of zero is zero.
But consider an operator charging a low fee of just 0.1 SSV per year. That is about $3 at current rates. If they want to increase their fee to $10 per year (0.33 SSV) it will take them over a year to do so if they go up by 10% each month.
Month Fee
0: 0.1
1: 0.11
2: 0.121
3: 0.133
4: 0.146
5: 0.161
6: 0.177
7: 0.194
8: 0.214
9: 0.235
10: 0.259
11: 0.285
12: 0.313
13: 0.345
This seems like a very long time to roll out a $7 price increase.
I think this very slow increase prevents people from experimenting lowering their rates, because once they go low it will take a very long time to get back to a higher level.
So my suggestion is to add another component to the rate increase limit.
Instead of just having a 10% cap, I think we should have a cap of 10% or 0.1 SSV, whichever is greater.
This way, for any fees set to 1 SSV or more the 10% cap would apply.
But for rates between 0 and 1 SSV, the increase limit would be set at 0.1 SSV per month max.
I think this would allow more flexibility in pricing, and would solve the problem of validators being trapped at 0 SSV.
What do other people think?
Thanks
GBeast