Vega 1.7 Protocol Upgrade - Evolving the MultiversX PoS Economy via Staking V4

Description

Let new validators join easier; improve economic security & Nakamoto coefficient; decrease stake concentration in top pools; bring dynamic slot auction & chain simulator; and more!

The Vega (rc/v1.7.0) release brings significant advancements to MultiversX, with Staking V4 at the forefront of these updates, driving us towards a more decentralized network. This release also includes technical improvements such as the epochs handler refactor and the introduction of a chain simulator to streamline testing and development processes.

Background

After years of research, development, extensive public discussions, testing phases, and a rigorous "Battle of Stakes'' competition, Staking V4 is now ready to be put to community vote on the MultiversX Governance portal.

Together with Staking V4, another important part of the upgrade is the Chain Simulator. Already extensively utilized internally and put at the disposal of the community for public use, it has received overwhelmingly positive feedback so far. Engineered to mimic a local testnet's behavior, the Chain Simulator doesn’t require a consensus group, which facilitates isolated testing and development scenarios.

Release Contents

1. Staking V4: eliminates the staking queue which was largely seen as the highest barrier for joining the consensus. New validators will therefore be able to contribute more easily to the security, decentralization and growth of the network. Instead of using a traditional first-come, first-served queue, a new auction-based mechanism is used to determine at each epoch which validators become active in the consensus based on the amount of automatically distributed top-up they have available to contribute.

2. Chain simulator: allows the creation of a binary that can be configured and parametrized to run like a very small-footprint blockchain. It supports sharding, full block processing, fast block generation and 100% full proxy (gateway) endpoints.

Testing and Testnets

The Vega v1.7 release has been rigorously tested through a comprehensive suite of evaluations, including end-to-end, integration, and differential testing. It was deployed on the public testnet in February 2024 in order to give validators and curious users the opportunity to explore the new staking module. Additionally, a specific testing campaign “Battle of Stakes” was conducted to further assess this release. The campaign details can be found here: https://multiversx.com/blog/staking-v4-battle-of-stakes

Read more about Staking v4 feature: https://agora.multiversx.com/t/staking-phase-4-mip-8/263/53

Read more about Vega v1.7 Software Upgrade content: https://agora.multiversx.com/t/vega-release-rc-v1-7-0/394

Frequently Asked Questions

How do the Staking v4 changes relate to me?

If you are a validator, you will need to revisit your strategies to align with the new minimum top-up requirement for auction list eligibility in the Staking v4 update. This adjustment aims at enhancing the network's efficiency, security and decentralization. If you are a delegator, you will see no change in your interaction with the system. Nonetheless, we encourage delegators to explore supporting smaller staking providers, as this diversity contributes positively to the ecosystem’s decentralization.

What is governance?

Governance democratizes decision-making, enabling interest alignment for all parties participating by allowing them to have a say in the future directions of the protocol.

Who can vote?

Random snapshots of staked EGLD have been taken between 29.03 and 07.04. All users holding at least 1 staked EGLD at the time of the snapshot are eligible to vote.

IMPORTANT NOTE: The more staked EGLD you have during the snapshots period, the higher your voting power will be.

How many days will the vote last?

The voting procedure for this proposal will span over 10 epochs from the 09.04 to the 19.04.

How will the votes be cast?

Here are the 4 available voting options:

• Yes - You agree that the MultiversX Protocol should be updated with this release.
• No - You disagree that the MultiversX Protocol should be updated with this release.
• Veto - A ‘NoWithVeto’ vote indicates a proposal either (1) is deemed to be spam, i.e., irrelevant to MultiversX Protocol, (2) disproportionately infringes on minority interests, or (3) violates or encourages violation of the rules of engagement as currently set out by MultiversX governance. If the number of ‘NoWithVeto’ votes is greater than a third of total votes, the proposal is rejected.
• Abstain - will register your voting power as NEUTRAL to the switch - but even if it may seem unimportant, these votes actually help the proposal and thus put the power in the hands of the people who vote and care about the network. So we encourage users that don’t have a strong opinion to still vote, so that the decision for the proposal is made based on the governance votes rather than users who don’t bother.

How can the proposal pass?

In order for a proposal to pass it needs a simple majority, or otherwise said, more than 50% of votes should be YES votes.

Can I use my liquid staked EGLD in the upcoming governance vote?

Yes, liquid staked EGLD can be used to vote. The only requirement is that the liquid staked tokens must have been held in the wallet and not in other contract addresses at the time of the snapshot.