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Ethereum validators asked to fund projects with up to 10% of staking rewards under new proposal
Key takeaways
- The proposal on Ethereum's research forum introduced “validator redirected revenue,” a protocol-level mechanism that would let network operators to send part of their staking rewards to ecosystem funding.
- Validators would signal how much of their rewards they are willing to redirect.
- That is the proposal’s purported answer to Ethereum’s "free-rider" problem, in which many projects benefit from shared infrastructure, security work, research, tooling and public goods.
The proposal on Ethereum's research forum introduced “validator redirected revenue,” a protocol-level mechanism that would let network operators to send part of their staking rewards to ecosystem funding. The redirect rate could range from 0% to 10% of staking rewards.
Validators would signal how much of their rewards they are willing to redirect. If a majority supports a rate above zero, the contribution would become mandatory for all validators.
That is the proposal’s purported answer to Ethereum’s "free-rider" problem, in which many projects benefit from shared infrastructure, security work, research, tooling and public goods.
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