Fantom Foundation Slashes Validator Self-Staking Requirements by 90%, Bolstering Security
Summary:
The Fantom Foundation announced a 90% reduction in its validator self-staking requirement on its Fantom layer-1 blockchain. Implemented after an approved vote in June 2023, this adjustment cuts the staking threshold from 500,000 FTM to 50,000 FTM. The foundation expects this modification to bolster security and streamline running a validator by expanding the network. However, they emphasized that as long as new validators use high-end hardware, the performance won't degrade. The foundation also revealed an unauthorized breach in their hot wallet three months ago, with a security researcher awarded $1.7 million for identifying another potential threat, averting potential damages of $170 million.
The Fantom Foundation has verified that it reduced the validator self-staking requirement for its Fantom layer-1 blockchain by a significant 90%. This comes half a year after this decision was voted on and approved. In a statement made on January 15th, Fantom Foundation indicated that these modifications had been recently implemented, subsequent to the vote that took place in June 2023. The revisions lead to a decrease in Fantom (FTM) staking threshold from 500,000 FTM to 50,000 FTM, amounting to $19,500 at the moment. The foundation posits that this transformation will boost Fantom’s security and simplify the process to run a validator, making it easier than before. By expanding the number of validators, the network conceivably makes it tougher for nefarious entities to stage an attack.
Validators on the Fantom network function by compiling transactions and distributing them among other validators. A consensus amongst at least two-thirds of network validators culminates in Finality. The Foundation acknowledged an escalation in validator number would mean the rapid delivery of submitted transactions due to a greater selection of validators. Despite this, the foundation assuaged fears that an increase in validator figures would lead to the network slowing down. As long as the incoming validators utilize high-quality hardware, the network will be safer and without any reduction in its performance while keeping to the 1-2 second time to finality. The foundation emphasized that lower staking requirements won’t jeopardize security as a validator’s power to verify transactions is commensurate with the amount staked, rather than its run count.
The intent to diminish the minimum quantity of FTM needed for a node operation has been a topic of discussion with Fantom since February 2022 earliest. At present, Fantom chain has 58 network validators as per Fantom’s block explorer. In comparison, Ethereum, the biggest layer 1 smart contract platform, boasts over 1.1 million validators. According to a report from June 2023 citing Messari data, Cardano, Solana and Avalanche hosted 2,589, 1,876 and 1,119 validators respectively.
Just three months ago, there was an unauthorized breach of the Fantom Foundation’s official hot wallet, resulting in a $550,000 loss which is a less than 1% dent to the foundation’s funds. A security professional who detected another possible risk from the hack and informed the foundation in time, received an award of $1.7 million from the Fantom Foundation. The cryptofirm accredits him with aiding in deflecting potential damages worth $170 million.
Published At
1/16/2024 4:07:50 AM
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