IIP: 25
Title: Delegate Endorsement
Author: iotex_dev
Status: WIP
Type: Standards Track
Category: Core
Created: 05-07-2024

📜 Full Proposal Details

Due to character limit requirements, this post has been condensed from its original form. The full proposal, which delves into more details on the Endorsement Flow, the Delegate State, and Endorsement Buckets, can be found in the IoTeXproject Github organization.

Abstract

This proposal introduces Delegate Endorsement, enabling individual stakeholders within the IoTeX Network to become Delegates without owning a substantial amount of tokens (i.e., the current minimum self-stake requirement of 1.2M IOTX). Instead, we propose individuals can accept endorsements from other stakeholders to help meet the minimum self-stake requirement. We believe Delegate endorsement promotes inclusivity and decentralization, expanding participation opportunities and fostering a more fair and accessible IoTeX ecosystem.

Motivation

The IoTeX network has been built on the principles of decentralization and inclusivity, allowing individuals and entities to actively participate in network consensus as Delegates. In the ecosystem, Delegates are responsible for running the Roll-DPoS consensus protocol to validate network transactions and produce blocks, as well as generate proposals to improve the IoTeX Network. In addition to technical requirements (i.e., maintaining uptime on a powerful hosted server), there are financial requirements to become a Delegate as well, specifically the current requirement of self-staking 1.2M IOTX tokens. This financial requirement has been cited as a barrier for IoTeX stakeholders who want to actively participate in consensus and governance but lack the necessary token holdings.

We propose the implementation of a Delegate Endorsement feature, which would allow stakeholders with substantial holdings to endorse and stake on behalf of aspiring individuals who do not meet the minimum token requirement. This program would enable individuals to actively participate in the network’s governance and consensus process, fostering inclusivity and diversity within the IoTeX ecosystem.

Specification

Definition

Roles

• Delegate: Participants can join without specific self-staking but must accept endorsements.
• Endorser: Stakeholders who can support a Delegate by creating and managing endorsement buckets.

Endorse Flow

1. Delegate Registration: Delegates register by paying a fee and are not eligible for consensus until endorsed.
2. Endorsement Creation and Management: Endorsers stake IOTX to create endorsement buckets and submit endorsements to chosen Delegates.
3. Acceptance and Termination of Endorsements: Delegates accept endorsements to participate in the consensus process; either party can terminate the endorsement.

Termination Process

Endorsement termination includes mechanisms for expiration or revocation, with transitional provisions for Delegates to secure new endorsements.

Rewards

Delegates earn rewards similar to traditional models but can negotiate the distribution with endorsers, considering the additional stakes from endorsements.

Rationale

This proposal simplifies Delegate operations by introducing an endorsement system that reduces the need for large personal stakes. It also reduces operational costs by minimizing on-chain transactions, facilitating a more inclusive participation framework.

Comparison of Staking Methods

Staking Method	Rewards	Requirements	Risks
Self-Stake Delegate	1.06x	High token amount, node management	Full responsibility
Endorse Delegate	~1.06x (negotiable with delegate)	Endorsement from another stakeholder	Dependent on the endorsed Delegate’s actions
Vote Delegate	1x	Minimal tokens	Minimal risk

By allowing more stakeholders to participate in governance without high initial stakes, this endorsement model enhances the network's decentralization and inclusivity.