Fantom reduces validator self-stake requirement by 90%
Fantom, a smart contract platform that aims to provide fast, secure, and scalable infrastructure for decentralized applications (dApps), has recently implemented a significant change to its validator self-stake requirement, decreasing it from 500,000 to 50,000 FTM. This move, decided by a governance vote¹, is aimed at making the role of a validator on the network more accessible to a broader range of participants.
Validators are the nodes that maintain the network and confirm transactions on Fantom. They stake their FTM tokens as a collateral and earn rewards for their service. The self-stake requirement is the minimum amount of FTM that a validator needs to stake from their own wallet in order to run a node. By lowering the self-stake requirement, Fantom hopes to attract more validators to join the network and contribute to its security and decentralization.
1/ Based on a governance vote, we recently reduced the validator self-stake requirement from 500k to 50k FTM, making it more accessible than ever to run a #Fantom validator.
But we’ve been asked:
“How does an increase in validators impact Fantom?”
Well, let’s find out 🧵 pic.twitter.com/H8AfnT5Itv
— Fantom Foundation (@FantomFDN) January 15, 2024
According to the Fantom Foundation, the official organization behind the platform, the reduced self-stake requirement has several benefits for the network and the ecosystem. These include:
- A more secure network: By having more validators, the network makes it increasingly challenging for malicious actors to launch an attack, as they would need to control more than two-thirds of the validators to compromise the network.
- A more accessible network: By lowering the barrier to entry for validators, the network becomes more inclusive and diverse, allowing more people to participate in the network governance and consensus mechanisms.
- A more future-proof network: By positioning the network for the future, the network enables smaller validators to grow in size and become a vital part of Fantom, creating a more resilient and robust network.
Fantom also clarified that the lower staking requirements will not pose a security risk, as a validator’s power to confirm transactions is proportional to their stake amount and not the number of validators a given person runs. For example, a validator with 1 million FTM staked would have the same power as twenty smaller validators, each with 50,000 FTM staked.
Fantom achieves consensus using its novel Lachesis protocol, which is a variant of proof of stake, called asynchronous byzantine fault tolerant (aBFT). On Fantom, validators confirm transactions independently and then share them with other validators, as opposed to all validators confirming the same transactions, like on Ethereum. Transactions are finalized into the Fantom blockchain after two-thirds of validators receive and agree on them.
Fantom claims that this consensus mechanism delivers unparalleled speed, security, and reliability, enabling the platform to process thousands of transactions per second and scale to thousands of nodes. Transactions on Fantom are finalized in 1-2 seconds and cost a fraction of a cent.
Fantom is also fully compatible with Ethereum, allowing developers to deploy and run their dApps on Fantom using Solidity and the tools they are already familiar with, such as Remix, Truffle, and MetaMask. Fantom supports the EVM and offers various products and services for dApps, such as decentralized exchanges, cross-chain bridges, lending and borrowing, yield optimizers, NFT platforms, and gamefi tools.
The current price of FTM is $0.39, down 0.5% in the last 24 hours. The market capitalization of FTM is $1.1 billion, accounting for 0.04% of the total crypto market cap.
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