Enhancing Network Decentralization - Proposals for Node Provider Standards

[Lorimer]

@bjoernek

The data structure for automatic staking would need to be defined. Using a neuron offers the advantage of enabling governance participation and providing voting rewards, but it does not support slashing

@Lorimer

In terms of slashing, I think this could be supported without too much work. These neurons should be controlled by the NNS governance canister (much like NF neurons), while the NP would have a hotkey {actually Neuron Management followees would be a better approach given that NPs aren’t always individuals, but teams}. This allows the NNS to split neurons and mark a neuron as forfeit (the ICP would be burnt after dissolving). Again, just thinking out loud. Dispersibility of the rewards would still need addressing.

I’ve been thinking on this a little more, and I think this would actually kill 2 (or maybe even 3) birds with one stone (if the maturity ownership limitation is addressed).

1. NF neurons are controlled by the NNS.
2. So is the D-QUORUM neuron (DQ).
3. In this potential staking/slashing implementation for Node Providers, so would these special NP neurons.

In all 3 cases a missing feature is for the maturity to be allocated to individual(s) who are not the formal neuron controller (given that the controller is the NNS itself). There’s no reason for maturity to accumulate in an NNS neuron that’s owned by the NNS itself.

If instead this maturity automatically flowed to the neurons that are followed by that NNS-controlled neuron, numerous problems would be solved at once (NF, DQ, NP).

NF

@NF

I would also like to be able to spawn maturity that has accumulated

DQ

@DQ

periodically disbursing the maturity to the elected followees . This shouldn’t really even need a proposal

NP

@NP

Dispersibility of the rewards would still need addressing

Example NP Neuron Setup

Note that the only thing that really represents a new feature are the orange lines (maturity flowing to followee neurons rather than accumulating in the neuron itself, if it’s an NNS-controlled neuron). Everything else is already supported.

This would support NP neuron staking, while simultaneously making on-chain NNS reviewer rewards possible (using D-QUORUM), as well as addressing limitations with NF neurons.

cc @lara