Change Airdrop Parameters: Decentralize Network

The top 10 validators have a large portion of network voting power.
At the time of writing the top 3 validators hold 21.8% of network voting power, and the top 10 hold 39.2% of the voting power. 53,487,498 Luna, or 16% of network voting power, is concentrated in 4 validators via the bLuna contract.
This is the largest centralization risk our network is facing at this moment. Part of this issue is being addressed here However, further incentives are needed to drive decentralization.
As outlined here. I am proposing that we eliminate ANC airdrops to delegators of validators with 5M or more Luna staked. This will lead to delegators who desire ANC airdrops to re-delegate their luna to smaller validators, spreading the voting power more evenly across the network.

*Edited param from “top 10 validators”, to “validators with above 5m Luna staked.”


For reference:
bLuna Contract

For clarity, I don’t think this has anything to do with bLuna.

This is only about airdrops of ANC that you receive when you stake your LUNA.

As I run a validatior, I’ll recuse myself from further discussion on the topic.


Correct, bLuna will not be affected by this proposal.

Do you think people are delegating based on Anchor airdrops? Flipside data is showing that a lot of weekly airdrops don’t get claimed. Curious of your thoughts on this?

What about getting rid of the weekly ANC airdrops. Take the remaining balance and burn half and airdrop the other half to anyone delegating to smaller validators, not in the top 10.

This still is only a partial fix in my opinion.

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I do not think that is the main reason the top 10 have delegations. However, we need more approaches to disincentivize delegations to the top 10.

Your idea sounds good to me.


I agree the ANC airdrops are not the main incentive. It remains to be seen if their disappearance would move any of the existing stakers to redelegate.
I believe however, that it could be a factor for new users looking for validators to stake with. Most choose the top 10 validators in belief they are the safest bet for high yield. Having the information that staking with top validators DOES NOT yield ANC airdrops might be the nudge they need to research further and consider others (popup info in terra station?). Great proposal!


So how do people feel about this?
should we bring it up?

I do understand anchor has some other issues going on.
but I feel this will help decentralization of the mothership, which is also quite a large issue.


Would be nice to get support for this going.