Motion to Initialize an Ethereum Lighthouse Validator

Preamble: Author: @verbdan Implementor: Founder’s DAO Community Member

Created Date: April 10, 2022

Summary:

This proposal will be about staking 32 Ethereum in becoming an Ethereum Consensus Mainnet Validator, with a Lighthouse build. This proposal at current prices would lock up 32 Ethereum (approximately $91,000/USD) while costly, if implemented would not only increase the number of decentralized validators, which is key to the Ethereum mission of decentralization. Though running a validator, will importantly, generate more Ethereum through validation as a form of stable investment for the PixelVault Founders DAO, which will commence with the donation of an assembled computer (in specifications) from verbdan to the PixelVault Founders DAO’s location of choice.

Abstract:

Upon a ‘yay’ vote for this proposal, verbdan would ship the already built computer (described in specifications), that only requires the lighthouse configuration, to PixelVault’s requested location. Following receipt of the computer, [a non-designated PixelVault employee] would assist with verification of product, condition, validity of parts, etc; then install and configure the computer with requisite software to run the Sigma Prime Lighthouse client (also in specifications), to then connect to the Ethereum Mainnet. After successful deployment testing on Rinkeby, send the required amount of Ethereum (increments of 32 Ethereum) as further instructed, in delicate instructions, to begin staking. Upon a successful connection, syncing, creation of keys (gnosis?), testing and final deposit of eth, the node should be live. From this point forward monitoring, and updating the node will be all the maintenance this new decentralized node will require; without it, rare slashing events can affect the stability and functioning of said node. This running node will act as a beacon of leadership in web3, as locking that Ethereum and operating that node, until deposited Ethereum is unlocked (at which we could vote once again), is far from a short term flip, and promotes decentralization for all.

Motivation:

This new proposal is put forward as a hope to both: continue to lead by example in the web3 space by helping decentralize the Ethereum Network. This first goal will hopefully be encouraged by the second motivation, to generate Ethereum through validating that network; this could be viewed as a ‘long term investment’ for the PVFD. Having both financial and communal benefits, and minimal upkeep, this could help further cement PVFD as true leaders in this space, and with any influence, push other projects to do the same (see: how the Mint Pass has become a movement). We hope to make these benefits clear and push for a strong opportunity.

Specifications:

Current specifications to run a validator are listed in the link* below, but listed will be the specifications of the computer that verbdan is pledging to donate, all installed and ready for shipping:

• Intel Core i3-9100F 3.6 GHz Quad-Core Processor
• Supermicro X11SCL-IF Mini ITX LGA1151 Motherboard
• Samsung 16 GB (1 x 16 GB) DDR4-2133 CL15 Memory
• Samsung 970 Evo Plus 1 TB M.2-2280 NVME Solid State Drive
• Fractal Design Node 804 MicroATX Mid Tower Case
• SeaSonic PRIME Fanless 500 W 80+ Platinum Certified Fully Modular Fanless ATX Power Supply
• intel cpu cooling fan, regular circulation fans, cables (connected), all included

These specifications meet/exceed the recommended specs to run a lighthouse and I’ve included an extra 1TB drive in the event space is needed in the future, or RAID is configured.

Outside of the computer, one of the final requirements upon successfully syncing to the network is going to be depositing a minimum of 32 Ethereum (per validator) to Fund the Validator Keys making this lighthouse validator active.

Link for guiding the building process and allowing members to be able to follow along (very verbose): *https://someresat.medium.com/guide-to-staking-on-ethereum-2-0-ubuntu-lighthouse-41de20513b12, or as updated since 4/16/2022.

Benefits:

The benefits to the proposal come from multiple avenues for our DAO.

• Passive dependable revenue, resulting in stable ethereum growth for the DAO in the form of Ethereum PoS (Proof of Stake).
• Camaraderie building with the Ethereum Network, as we would be helping decentralize the greater network, and could create a shift in what ‘community’ can achieve utilizing internal funds for a measurable good.
• Teaching opportunity for new users that could potentially never dig deep enough to learn about the decentralization mission, but that’s nerd stuff.

Drawbacks:

The validators each cost 32 Ethereum to run, which is no little amount to consider putting on ice. For many of us, this is a life changing amount of money. Our DAO currently holds liquid assets in excess of 150+ Ethereum; this is about 1/5th of our (current) liquidity locked away until Ethereum 2.0 rolls out (to be determined, no use speculating). I wage that this amount put away into a validator, whether immediately removed from the validator once the staking lock is removed or not, is an effective way for our DAO to effectively lock and build funds, which allows for greater trust from the community involved in our collective DAO to make exciting plays, while simultaneously also feeling responsible in various verticals. Additionally, using extra resources to verify the proper running of the validator is something that should be considered. Not expected to be much upkeep, but it is going to definitely require attention and care, to prevent slashing. Slashing is when a validator isn't doing something it should, which we will have discussion and update one another about, to mitigate our opportunity of encountering as a DAO.

Outcomes:

From a positive vote for this proposal, verbdan will comply with packing and shipping the computer (from specifications), responsibly to an approved location where approved PV members can/will verify contents, install and configure the lighthouse software, generate and fund validator keys, then monitor and update said validator for an indeterminate amount of time (till a new vote to defund the validator is made), like Desmond from the Lost television show.