TL;DR
By whitelisting all validators to Anchor with 10% commissions or less we can reduce Anchor’s average protocol costs from 8.69% to 6.94% (roughly $6.2M UST savings/year)*
*Protocol savings will dynamically increase with the price of LUNA.
AND
Making the whitelist parameters more inclusive will also Increase the number of Anchor validators from 16 to 123 dramatically increasing decentralization.
Background
Since Anchor’s inception Lido has acted as the gate keeper to allow new validators to support the Anchor Protocol. Lido says in the Anchor documentation:
“The bLuna/stLuna contracts keeps a whitelist of validators, only permitting delegations to those included in the whitelist. This is crucial since all bLuna/stLuna tokens equally share slashing risks, and delegations to low-performing validators could negatively affect all holders.”
When Anchor launched, the Terra validator set was not full (there were under 130 validators) and many validators had issues maintaining up time and completing network upgrades. The state of the Terra network has evolved dramatically as the network has grown and validator competition has increased. Today the Terra validator set is full, and most validators do an outstanding job by most metrics including up time.
Since the Terra network and Anchor have both substantially matured over the last year, we believe having a centralized gate keeper to Anchor validators is no longer optimal for the community or Anchor protocol.
Since the inception of Anchor, Lido has only increased the Anchor validator set once (in July of last year)
The complete list of Anchor validators and their commissions is below:
| Name | Address | Commission |
|---|---|---|
| Staking Fund | terravaloper123gn6j23lmexu0qx5qhmgxgunmjcqsx8gmsyse | 10% |
| B-Harvest | terravaloper15zcjduavxc5mkp8qcqs9eyhwlqwdlrzy6jln3m | 5% |
| DokiaCapital | terravaloper1v5hrqlv8dqgzvy0pwzqzg0gxy899rm4kdur03x | 5% |
| Certus One | terravaloper1kprce6kc08a6l03gzzh99hfpazfjeczfpzkkau | 10% |
| StakeWith .Us | terravaloper1c9ye54e3pzwm3e0zpdlel6pnavrj9qqvq89r3r | 10% |
| P2P. ORG - P2P Validator | terravaloper144l7c3uph5a7h62xd8u5et3rqvj3dqtvvka2fu | 8% |
| blockscape | terravaloper1542ek7muegmm806akl0lam5vlqlph7spflfcun | 10% |
| syncnode | terravaloper1sym8gyehrdsm03vdc44rg9sflg8zeuqwfzavhx | 10% |
| 01node | terravaloper1khfcg09plqw84jxy5e7fj6ag4s2r9wqsgm7k94 | 8% |
| Chorus One | terravaloper15urq2dtp9qce4fyc85m6upwm9xul30496sgk37 | 8% |
| Smart Stake | terravaloper1alpf6snw2d76kkwjv3dp4l7pcl6cn9uyt0tcj9 | 5% |
| Stakin | terravaloper1nwrksgv2vuadma8ygs8rhwffu2ygk4j24w2mku | 10% |
| DSRV - CHAISCAN .com | terravaloper175hhkyxmkp8hf2zrzka7cnn7lk6mudtv4uuu64 | 10% |
| everstakeone | terravaloper13g7z3qq6f00qww3u4mpcs3xw5jhqwraswraapc | 10% |
| Forbole | terravaloper1jkqr2vfg4krfd4zwmsf7elfj07cjuzss30ux8g | 10% |
| Figment | terravaloper15cupwhpnxhgylxa8n4ufyvux05xu864jcv0tsw | 10% |
| Average | 8.69% |
The highest commission of any Anchor validator is 10% and the average commission of Anchor validators is 8.69%. This commission is an expense reducing Anchor protocol revenue.
Proposal for Improvement
- We believe it is time to expand the Anchor validator set to include all validators with a 10% commission or lower.
- By using 10% as the commission threshold, we can ensure no existing faithful Anchor validators who have been doing a great job are removed from the Anchor set.
- There are a total of 123 validators which would qualify by this criterion (an increase of 107 validators – huge win for decentralization)
- The average commission of the 123 qualifying validators is 6.94% (representing a 1.74% reduction from the current average).
- In addition to increasing decentralization, this proposal will result in $6.2M UST savings per year for Anchor Protocol. This savings will increase as the price of Luna increases and as Terra protocol revenue increases. (Huge win for $ANC holders)
List of validators which would become whitelisted if passed:
| Name | Commission |
|---|---|
| Orion.Money | 5% |
| Staking Fund | 10% |
| B-Harvest | 5% |
| DokiaCapital | 5% |
| Certus One | 10% |
| hashed | 10% |
| NOD Games | 0% |
| Staked | 10% |
| DSRV - CHAISCAN .com | 10% |
| Mosaic | 3% |
| Terran One | 3% |
| DELIGHT | 10% |
| Aardvark | 4% |
| stake.systems | 2% |
| everstakeone | 10% |
| Smart Stake | 5% |
| Bison Trails | 10% |
| Figment | 10% |
| StakeWith .Us | 10% |
| Centauri Alpha | 4% |
| Talis Protocol | 1% |
| BinanceStaking | 9% |
| Luna Station 88 | 3% |
Galactic Lounge   
|
0% |
| Terra Bites | 3% |
| Accomplice Blockchain | 0% |
| BridgeTower | 9% |
| ISS | 4% |
| InfStones | 8% |
| P2P .ORG - P2P Validator | 8% |
| Stakin | 10% |
| Chorus One | 8% |
| Arrington XRP Capital | 10% |
| Blockdaemon | 10% |
| Mr.K(From February 01, 2022, the commission will increase to 5%) | 1% |
| Neptune Finance | 5% |
| Forbole | 10% |
Allnodes  0% fee |
0% |
| Rockaway Blockchain Fund | 6% |
| Marte Cloud | 5% |
| syncnode | 10% |
| 01node | 8% |
| THORchain.BULL & 0xVentures .org | 0% |
| blockscape | 10% |
| GT Capital | 5% |
| Orbital Command | 4% |
| Galactic Punks Validator | 5% |
| Terra World | 5% |
| CoinBevy | 3% |
| moonshot | 5% |
| MissionControl | 5% |
| lunarcitizens .io | 5% |
| Luna Rewards | 10% |
| Easy 2 Stake | 8% |
| ChainLayer | 10% |
| Staker Space | 10% |
| Top Shelf | 10% |
| Inotel | 10% |
| Uranus | 10% |
| Un Fuego | 10% |
| MCF | 8% |
| Craig | 10% |
| healings | 10% |
| RockX | 9% |
| block42 | 10% |
| Interdimensional Cable | 10% |
| 8moon | 10% |
| Legend.X | 10% |
| Sarah Kerrigan | 10% |
| Leviathan | 10% |
| TerraDactyl | 10% |
| Nexus Event | 10% |
| StakeSabai | 8% |
| wave | 10% |
| MANTRA DAO | 2% |
| Stakely .io | 5% |
| BTC.Secure | 10% |
| KK Validator == gp airdrop == | 10% |
| kytzu | 10% |
| BlockStake.xyz | 10% |
| AUDIT.one | 7% |
| WeStaking | 2% |
| ATEAM | 10% |
Autism Staking 
|
10% |
| CAPAPULT | 5% |
| Crypto Plant | 10% |
| TERRA-FIRMA | 10% |
| Stake n’ Shake | 10% |
| Heavy Metal Finland | 7% |
| Terra-India | 9% |
| NITAWA | 10% |
| Terran Stakers | 10% |
| 0base.vc | 10% |
| AuraStake | 10% |
BlockNgine  Slash Protected |
2% |
| Cosmic Validator | 10% |
| Chaos Protocol | 10% |
| SolidStake | 5% |
| Synergy Nodes - Glory | 5% |
| MoonDog | 10% |
| OneStar | 5% |
| setten .io | 3% |
| PFC | 5% |
| Nodeasy | 10% |
| GalaxyDigital | 5% |
  Luna Burner 
|
0% |
| Zerg One | 3% |
| Stake5 Labs | 5% |
| Protoss One | 3% |
| DACM | 5% |
| SCB 10X | 1% |
| Pantera Capital | 10% |
| Hypersphere Digital | 10% |
| LunaOrbit | 5% |
 uGaenn 
|
1% |
| FreshLUNA. com Enterprise Validator | 9% |
 CryptoCrew Validators #IBCgang
|
5% |
| ChainofSecrets | 1% |
| Huobi | 10% |
| Staky .io | 8% |
| SCV | 5% |
| coinhall .org | 5% |
| Bi23 Labs | 10% |
| Average | 6.94% |
We also hope other Terra protocols which rely on staking such as Stader and Prism will take these statistics into consideration for how they too could improve their product offering and promote decentralization.