The Forta Governance Council is seeking community feedback and approval of this “FP-3” proposal relating to delegated staking. FP-3 proposes the following actions that are designed to further increase the security and reliability of the Forta network:
1. Delegated staking: modify the Forta staking smart contracts to add support for delegators to delegate stakes to node owners, and give node owners the ability to assign delegated stakes to individual nodes
2. Prioritized bot assignment: modify the Forta assignment algorithm so that it will prioritize scan nodes that have higher stakes
3. Modification to rewards: modify the scan node rewards distribution algorithm so that rewards will be distributed to node owners based on the number of bots they are assigned and execute, and allow node owners to designate a percentage of rewards to be shared with delegators
4. Support in the Forta App: add support in the Forta App for scan node owners and delegators related to the new delegated staking options
The 4 items proposed in FP-3 are described in more detail below under the corresponding numbered heading. Voting on FP-3 will be determined by a majority approval vote of FORT token holders on Snapshot beginning on September 5th, 2022 and ending on Thursday 8th, 2022 (exact times to be announced through official Forta channels).
1. Delegated staking
Add support in the Forta staking smart contracts for delegators to assign delegated stake to node owners, and allow node owners to distribute the delegated stakes to their nodes for increased security within the limits of the maximum stake allowed per node (the Forta Governance Council may raise the maximum stake allowed if delegated staking is approved and activated).
Node owners will be able to designate a percentage of their rewards to delegators (see more in section 3 below). Changes in the percentage shared will go through a timelock. Delegated stakes will be subject to slashing and will be subject to waiting periods for withdrawals.
All smart contract changes will undergo a thorough security audit and the upgrade of the smart contracts must ultimately be approved by the Forta Governance Council (via the multi-sig wallet which maintains upgrade privileges on the smart contracts).
2. Prioritized bot assignment
The Forta bot assignment algorithm will be modified so that scan nodes with higher stakes (more security) will receive new bot assignments before other scan nodes with equal or lower SLAs (assignment today favors nodes with higher SLAs and that will not change in this proposal). This should help ensure the highest level of security and reliability for the Forta network.
3. Modification to rewards
Scan node rewards will be modified so that they will be distributed to node owners proportionally based on the number of the bots assigned, while also still factoring in the SLA of the nodes. As part of the smart contract changes the node owners will have control to specify a percentage of rewards to share with delegators, that percentage would be split with delegators proportional to their delegated stakes, and that reward distribution to node owners and delegators would be controlled by the smart contracts. Changes that node owners make to the percentage or rewards shared with delegators will go through a timelock.
4. Support in the Forta App
In coordination with the above changes, the Forta App will be extended to allow:
- node owners to set the % of rewards they will share with delegators and track rewards
- delegators to delegate and withdraw stakes and track rewards
- node owners to manage stakes delegated to them