Polkadot, one of the most prominent blockchain networks, is exploring a significant alteration to its staked DOT token un bonding process. The proposal, put forth by researchers from the Web3 Foundation, is aimed at considerably shortening the un bonding period, a move that could improve user experience but has also sparked concerns about potential centralization risks.
The Proposal
On June 19, Alistair Stewart, the head of research at the Web3 Foundation, along with Jonas Gehrlein, another researcher at the foundation, submitted a proposal to the Polkadot Fellowship committee. The proposed changes revolve around introducing a flexible un bonding mechanism for Polkadot’s native DOT token and its canary network, Kusama’s KSM token.
The crux of the proposal is to decrease the minimum un bonding period from the current 28 days to just 2 days. According to the proposal’s GitHub document:
“New requests are executed with a minimum of 2 days, when the queue is comparatively empty, to the conventional 28 days, if the sum of requests (in terms of stake) exceeds some threshold.”
The researchers clarified that while the un bonding durations will adjust based on the number of requests in the queue, they will not exceed the current 28-day maximum. This means that the process of un bonding staked tokens could be significantly expedited while ensuring network security is maintained.
Improving User Experience
If approved, this proposal pledges to expedite the un bonding process without compromising Polkadot’s ability to slash tokens backing malicious validators. This adjustment would only impact staking locks, leaving other types of locks, such as governance locks, unchanged. Moreover, the researchers suggested piloting the model on Kusama before implementing it on Polkadot to ensure its effectiveness and security.
Gehrlein stressed the objective of the proposal: “Our aim is to enhance the user experience by offering a more flexible and faster un bonding process. This change would enable stakeholders to access their funds more swiftly, thereby enhancing overall user satisfaction.”
Community Concerns
Despite the potential benefits, the proposal has raised concerns within the Polkadot community, particularly regarding centralization risks. Lurpis Wang, co-founder of the Polkadot-based Liquid Staking protocol Bifrost, voiced his apprehensions, arguing that reducing the un bonding time might not address the centralization issues linked with the liquid staking protocol.
Gregus Jakub, co-founder of Hydration, echoed these concerns. He pointed out that the current set of validators is already quite centralized, with significant stakes controlled by a few entities. He stated:
“Liquid staking didn’t proliferate on Polkadot more than anywhere else, actually its dramatically lower than on other networks. I would argue that the current set is centralized already a lot but without any involvement of LST providers. P2P ~ 10% of stake, then Jaco, Zug Capital, maybe some other and we might be easily around 33% of PoS security threshold.”
In response to these concerns, Gehrlein reassured that the proposal is designed to enhance the user experience without undermining liquid staking providers. He emphasized that the primary objective is to make staking more user-friendly while maintaining the network’s security and decentralization principles.
Moving Forward
The proposal is currently open for community feedback, and stakeholders are encouraged to share their thoughts and concerns. The next steps involve a thorough review of community input and further discussions within the Polkadot Fellowship committee. If the proposal gains sufficient support, it will be piloted on Kusama before a potential rollout on the Polkadot network.
This proposed change comes at a critical time for Polkadot, as the network continues to evolve and strive for improved usability and security. The feedback from the community will play a pivotal role in shaping the final outcome of this proposal.
Conclusion
Polkadot’s proposed reduction in the un bonding period for staked DOT tokens represents a significant step towards enhancing user experience on the network. While the potential benefits are evident, the concerns about centralization highlight the need for careful consideration and community involvement. As the proposal undergoes review and potential implementation, the balance between user convenience and network security will be paramount.
