Incentivized Testnet - Final Draft

General Development
24

Hello, there’s been a lot of validator abuse lately. I want to share my thoughts about it.

First of all, it is the right decision to reward only validators that are added with the eth received from the discord bot.

Secondly, a similar strategy can be followed. As you know, a lot of bot validators have been used, and I think most of these bot accounts are one-off. I do not believe that these wallets will be accessed again. I propose that these wallets be barred from the prize. How will it be?

Here’s a rule: There are two options for you to become a suitable validator:
1- Having at least 2 validators.

Or

2- Having at least one operator and one validator.

With this simple rule, hundreds of single-use wallets created with abused Eths are barred from rewards. This really means that operators and validators that support the network will earn a minimum of 5% more. (My analysis based on simulation.)

25

Just for reference
https://snapshot.org/#/mainnet.ssvnetwork.eth/proposal/QmSbouw5SCUmKMQwW7s1bEwhfXJ9LQJHetsruU8MrUTwBE

3 Likes
26

Hi, I feel there are issues with Validators and their rewards.

I would like to make a proposal regarding the award distribution.

First of all, I currently have 3 operators and 3 servers.
They have been working for about 2 months. I had set up test servers for 2 months before.
My 3 operators have a total of 125 validators.
My first round reward is 25 SSV
My second round reward is 20 SSV

I don’t see any problem in this part. Actually, I paid a little more to the servers due to the network problem in the first round. But other than that there is no problem.

Here’s what I’m proposing:
I guess the rewards will not be sent automatically.
We’ll have to claim.

The number of validators awarded is currently around 5000 and this number is growing. but there is a problem.
Most of these validators are people who don’t understand the true purpose of the testnet. In other words, users who have defined a validator only once and expect to receive a reward.

of these 5000 validators, about 4000 have no operators at all. and it has only 1 validator.

What is the reward for only 1 Validator?
0.47 SSV in the first round
0.36 SSV in the second round

likely:
0.25 SSV in the third round
0.15 SSV in the fourth round
and 0.10 SSV in the last round

will win such a prize. so in total they will earn an average of 1.5 SSV.

As I said above, most users didn’t know the real purpose of the testnet, only made a one-time transaction just to get the reward.
And I’m sure none of them calculated the fee.

As of now, 1 SSV is about $15. Let’s say they got lucky and won 2 SSV. In this case, they will have earnings of 30 dollars.

But the problem will start here.
When claiming, no one will want to pay a fee of 60-100 dollars to win 30 dollars.

Anyway, everything I’ve said so far is something that anyone can think of anyway.

My proposition is:
Claim should be made in 3 stages.

eg:
On April 4, the testnet event ended.

1 stage
Claim period can be granted between 14-21 April.

Stage 2
Those who do not claim between 21-28 April should be given additional time.

Stage 3
(The offer is here) the awards of those who do not claim their awards in the first 2 stages,
will be recalculated and distributed to claiming users.

because the numbers are really big and it hurts real workers.

There are currently 5000 validators. it looks like it will easily reach 10 thousand until the last round.

At least 5,000 of these 10k validators do not own any operator. and it doesn’t have multiple validators. There will be only 1 piece.

We said 2 SSV.
2SSV x 5000 = 10K SSV will not be claimed. (LEAST)

My guess is 20K SSV on average.

This is where the proposal will start, the unclaimed prizes will be recalculated and redistributed among the claimants.

I believe that such a move would be tremendously satisfying to everyone. And the promised reward will be fully distributed. And real workers will get rewarded for their hard work.

I submit it to your vote.
Respects!

1 Like
27

Make sense, I agree.

1 Like
28

Without stating my personal opinion on the matter, just thought I will share the following so you could base/adjust your proposal according to some objective and relevant data:

Referenced user base

  • As users can have multiple validators and rewards are distributed per address, it’s preferred to evaluate by unique user addresses than by validators number (your 4000 out of 5000 reference → 80%) - currently there are 1868 out of 2852 eligible users with only 1 validator, which counts as 65% of users.

User segment rewards

  • As validator deposits are done only through our bot distributions at the rate of ~200 per day, the reward for 1 validator for sequencing rounds can be more accurately predicted:
    ** Round 3: 0.23 SSV
    ** Round 4: 0.17 SSV
    ** Round 5: 0.14 SSV
    (which means that a single validator from the start of the testnet could yield 1.37 SSV @ $15 = $20)

Distribution costs

  • We are currently developing our distribution contract, but initial tests demonstrate that it cost between 60k-80k gas units to transact, even with 100k benchmark @ 50 gwei we are talking about 0.005 ETH (~$12 @ 2400 ETH/USD rates), so between $10-20 is more likely than 60-100 dollars.

Single validator profitability

  • Basically the likelihood for a user with a single validator to claim is rewards is $20 dollar reward vs. $12 transaction fees, which on paper currently seems profitable as is. If you take into account SSV appreciation over time it increases the profitability for users to claim their rewards in the future.

In addition - if you give users 2 stages to claim their rewards you might as well just include it under a single longer stage.

2 Likes