Lit Reviews: Trade-offs in Blockchain Stake Slashing Design

A banner design showcasing the article title, understanding the trade offs of blockchain stake slashing design.

The overarching thesis is clear: there’s no universally optimal staking model. Protocol designers must make conscious trade-offs between validator incentives, user accessibility, inflationary risk, and network security. For example, protocols prioritizing coin value may lean toward low token inflation and high transaction fees, potentially sacrificing validator participation. Others may prioritize rapid validator growth, accepting inflationary risks or lower user adoption in the short term.

Solana Validator Challenges (2024)

Solana Validator Economic Challenges

The primary Solana validator incentive structure requires significant effort for an average validator to break even.

Economic challenges contribute to validators finding innovative ways to earn, including commission cheating.

The ecosystem should “stop supporting 0% commission validators!”. 

Solana should document common error messages validators encounter and how to resolve them. 

Now to the basics 👇

Or would you rather jump right into the findings and analysis – Can Validators Break Even?