Phase 2: Flare Transitions to Proof of Stake
Overview of PoS Model.
If you haven't heard already... Flare transitions to proof of stake, with 92.02% of votes for FIP.05, bringing some significant improvements. Here I have condensed the information to dot points on key player roles and other takeaways.
Familiarise yourself with the 3 chains:
C-chain: Where EVM operates, facilitating the wrapping and delegating of FLR tokens.
P-chain: Staking for IPs (Self bond) and participant-delegated stake takes place.
X-chain: Unused currently. Future home for fast monetary transaction.
Infrastructure Providers (IPs):
There are currently 53 validators.
Open to any player (FTSO) who meets the requirements in FIP.02.
Validators must self-bond a minimum of 1M FLR on the P-Chain and maintain an uptime of at least 80% to remain in the validator reward pool.
The self-bond amount has a lock-up period of 60 days to one year.
IPs charge a fee for validation service, distributing the remainder to stake-delegating participants.
The delegated stake limit per validator is 15 times the self-bond amount.
The combined total of self-bond and delegated stake cannot exceed 200M FLR per validator.
IPs can run up to four validator nodes under their single FTSO.
Staking fee set by IPs is fixed and cannot be changed until the validator's self-bonded stake parameter expires.
Stake delegators (Participants of staking):
Stake delegators must delegate a minimum of 50,000 FLR.
The minimum lockup period for delegated staked tokens is two weeks.
Stake delegators can choose any validator to delegate FLR stake to.
Stake delegators can define their lockup period within the validator's selected self-bond window.
Stake delegators need to re-delegate their stake when a lockup ends or when the preferred validator's self-bond expires, whichever comes first.
Delegated stake on P-Chain reflects on C-Chain through a mirroring service (smart contract), making monthly FlareDrops and participation in governance voting available.
Inflation Changes:
A new ratio of 70/30: Inflationary rewards reduce to 70% from 80%, with the remaining 30% provided to network validators.
This adjustment aims to reward P-Chain staking participants and offset required lockup periods.
Other Info:
In Phase 2, it's not possible to simultaneously earn rewards from C-chain and P-chain. You choose either delegation rewards from FTSO, or 2) validation rewards from staking. Curious to know what everyone will be doing here
Thanks for reading! Have a great day ☀️
Original tweet thread with sources linked here.