Forta Delegated Staking
The Forta Governance Council is seeking community feedback and approval of this “FP-4” proposal relating to delegated staking. FP-4 incorporates the community feedback on FP-3 and 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 nodes within the limits of an increased max stake allowed.
2. Prioritized bot assignment: raise the max stake allowed on bots and modify bot assignment so that bots with higher stakes will be prioritized to nodes according to their SLA and stake.
3. Modification to rewards: modify the scan node rewards distribution so that rewards will be distributed based on the SLA of each scan node, and to a lesser extent on the amount staked, and with rewards shared among node owners and delegators with node owners having the option to keep a commission percentage from the delegator rewards.
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, including the ability for delegators to search and discover nodes seeking delegation.
The 4 items proposed in FP-4 are described in more detail below under the corresponding numbered heading. Voting on FP-4 will be determined by a majority approval vote of FORT token holders on Snapshot beginning on September 27th, 2022 and ending on September 30th, 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 maximum stake allowed per node will be raised to 15,000 FORT and staking parameters may be adjusted further in the future based on community decisions with approval of the Forta Council. Node owners will be required to supply the minimum node stake themselves, and delegation will not be allowed on nodes for which the node owner has not supplied the minimum stake.
Node rewards will be shared among node owners and delegators according to the percentage of stake supplied. Node owners will be able to specify a commission percentage that they will keep from delegator rewards (see more in section 3 below). Changes in the commission will go through a timelock. Delegated stakes will be subject to slashing and will be subject to waiting periods for withdrawals, unless the node owner fails to maintain the minimum stake required on a node in which case delegators will not be required to wait for withdrawal.
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 max stake allowed per bot will be raised to 10,000 FORT. The Forta bot assignment algorithm will be modified so that bots with higher stakes will be prioritized for assignment to scan nodes according to their SLA and stakes.
3. Modification to rewards
Scan node rewards will be modified so that they will be distributed to node owners based on the SLA of each scan node, and to a lesser extent to the amount staked.
The node owners will have control to specify a commission percentage they will keep from the delegator rewards. Any changes that node owners make to the commission percentage 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 % commission they will keep from delegator rewards;
- delegators to delegate and withdraw stakes;
- track rewards for node owners and delegators;
- node owners to manage stakes delegated to them; and
- delegators to search and discover nodes that seek delegation.