How it started
Mid August 2021 I started a “crusade” against the centralisation of voting power on the Osmosis chain. It had a small revamp in the beginning of September to make it future proof. The starting point was that 6 validators had almost 50% of the voting power and 78 validators with a voting power below 1%.
At this very moment (06–01–2022) this is changing. As we speak the top 8 has nearly 50% of the voting power (so 2 more than 4,5 months ago) and just looking at the top 100 validators there are 74 validators with a voting power below 1% (so 4 less than 4,5 months ago). It is just a start, but a promising start that we as a community as slowly turning the boat around and are making the voting power more decentralized. On that conclusion my “crusade” on this part will end, also since it is something which is more in the picture than some months ago. Not only on Osmosis, but also on other chains and I am proud to have played my (small) part in this.
Also, if we do a recap in the meantime we had 60 raffles, where in total 481 OSMO was handed out to delegators. So on average a raffle was 8,02 OSMO worth. Against current prices that is $68,13 per raffle and $4087,79 in total!
Now you might wonder, will the raffles stop with that statement?
I can answer that question; no, the raffles will not end.
The focus will change though. I’ll explain why.
Governance is really important in the cosmos ecosystem. Some chains have a very strong development team with a roadmap which is followed and some chains use governance very often to activate on-chain changes. Osmosis is a project which uses governance actively.
Delegators and validators both have a role in this. Delegators can vote themselves, but validators have a more active role to vote in governance. They represent the voting power from the people who trusted them with their delegations.
However, with the latest addition on Mintscan the performance of validators in governance becomes really transparent. And now it can easily be seen that not every validator fulfills that role as successful as the other… note the column “Participation” in the figure below. Green means a validator voted on 50% or more of the proposals, grey means less than 50% votes. It does not look promising…
If we look to the complete validator set only 29(!) of the 118 validators fulfill the requirement of participating in more than 50% of the proposals. It might be that some are good at doing technical support in the background, but voting also takes very little time.
Small sidenote ofcourse is that some have joined too recent to be able to, but still. If the conclusion is that roughly 3 out of 4 validators is not active in governance it is not good.
It also means that the coins delegated to them do not participate and are thus not represented in the outcome of the proposals. And since a lot of the bigger validators do not vote actively a large portion of the voting power is just not used.
How can we change it?
It starts with spreading the word. We as a community need to start supporting validators who fulfill their role in the ecosystem instead of going for a quick buck or a big name. In the end all of us benefit from a strong ecosystem. A strong basis preceeds value.
To raise awareness I will continue my raffles. Once a week (on Thursday) I will select one of the validators which are marked green in the column “Participation” on Mintscan. But decentralization will not be out of the picture completely, so only validators outside of the top10 are eligible.
From these validators I will select one lucky delegator who will win 10% of the commission of the Leonoor’s Cryptoman validator of that day.
But that is what I will and can do. You as a delegator can act as well. Check Mintscan and see if your selected validator performs well on the field of governance.
- If yes, stay supporting them.
- If not, think about whether your support is ok where it is or whether it is better off on a validator who is actively supporting governance. In the latter case you can redelegate (and since commission is nearly everywhere the same, your rewards are still safe).
Thanks for your support and let’s push all validators towards a more active governance! For different giveaways on the Leonoor’s Cryptoman validator stay tuned!