ChihuahuaChain 80/20 Giveaway
There is no formal entry… the actions on chain determine eligibility.
To be eligible:
- Your address must be funded as of 2/1/2022 midnight UTC.
- ̶Y̶o̶u̶r̶ ̶a̶d̶d̶r̶e̶s̶s̶ ̶m̶u̶s̶t̶ ̶d̶e̶l̶e̶g̶a̶t̶e̶ ̶5̶0̶%̶ ̶(̶o̶r̶ ̶m̶o̶r̶e̶)̶ ̶t̶o̶ ̶v̶a̶l̶i̶d̶a̶t̶o̶r̶s̶ ̶r̶a̶n̶k̶e̶d̶ ̶2̶1̶–̶1̶0̶0̶ ̶t̶h̶a̶n̶ ̶t̶o̶ ̶v̶a̶l̶i̶d̶a̶t̶o̶r̶s̶ ̶r̶a̶n̶k̶e̶d̶ ̶1̶–̶2̶0̶.̶
- Your address must delegate 50% (or more) to validators ranked below top-20 than to validators in the top-20.
- Your address must delegate to three (or more) validators.
- Your address must delegate 8020 (or more) $HUAHUA
- Your address is not a validator’s self-delegate address.
- The prize pool is currently 2M $HUAHUA. The overall prize pool may grow in size, should others choose to pledge donations to the prize pool.
- 20 winners will receive 1/80th of the prize pool. As of this writing the prize pool is 2M $HUAHUA, and so 20 winners will receive 25,000 $HUAHUA.
- Eligible addresses will receive an equal share of the remaining pool. As of this writing there are already approximately 840 eligible addresses, which at the current prize pool, would be nearly 2000 $HUAHUA. This number will go down as the eligible addresses grow… but could go up if more volunteers pledge funds to the prize pool.
- The validator set becomes more decentralized.
The unbonding period on ChihuahuaChain is 28 days. To allow sufficient time for any unbondings or redelegations to complete, the winners will be selected on 3/1/2022 at midnight UTC.
How to Choose a Validator
The primary action required (unless you’re already meeting the criteria) will be redelegating a portion of your stake to a validator ranked 21–100. To do so, head over to Mintscan, and look for a validator that:
- Runs a dependable setup with high (> 99% ) uptime
- Charges a reasonable commission 5–10%
- Actively participates in governance
Click on the validator to learn about their offering, what sets them apart from others? Do they actively participate in the community? There’s no rush to decide, as you’ll have 28 days to make your choices.
How to Redelegate
Once you have selected one or more validators to share your delegations with, you can easily redelegate from OmniFlixNetwork’s UI.
- Connect your wallet by clicking “Connect”
2. From your list of validator positions, select “Redelegate”
3. Choose your new validator, enter the amount of $HUAHUA to redelegate
Approve the transaction and your delegation will be immediately redelegated.
Note: The redelegated funds will not be available for undelegating (or re-redelegating) until another period of 28 days has passed.
ChihuahuaChain launched as a useless memecoin on December 14th, 2021. The chain has continued to grow to be one of the top ten in transactions and IBC transactions. As the number of IBC chains increase, new validators are coming online and learning how to provide secure reliable service. Through this growth, the $HUAHUA chain has shown utility as a proving grounds for participants to gain first-hand experience at real-world proof-of-stake issues.
After launch, there was a race to bottom for commission rates, and some validators offered 0% commission rates. The intent was to provide delegators with maximum value, while making the validator stand apart from others. If left unchecked, the network could have become unhealthy.
The 0% commission offerings resulted in the majority of delegations going to a few validators. This centralizes voting power among a few validators. As a result, new validators would be forced to charge lower commissions and be unable to afford to run adequate hardware.
A governance proposal was put forward to create an agreement amongst the validators that a minimum 5% commission should be charged. This worked well for a short while, but new validators continued to arrive and 0% commission rates returned. Naturally, the validator would rapidly acquire delegations. Ultimately, a software upgrade to the network enforces the governance and ensures the network remains healthy.
Is the network healthy, at present? Let’s look at the allocation of delegations across the validators on ChihuahuaChain:
The top 4 validators hold > 33% of the delegations, which poses an existential threat to the network should they simultaneously go offline. If that were to happen, the remaining validators would be unable to achieve consensus and the network would halt until sufficient voting power could come back online. In fact, 80% of the delegations are held by 20% of the validators!
After pondering the above, I began to wonder:
Could a giveaway incentivize actions to improve a network’s health?
Such a giveaway would need to:
- Incentivize actions that improve network health
- Avoid rewarding those indirectly benefiting from the actions
- Establish criteria, that even if exploited, broadly improve the network.
The #8020Giveaway attempts to meet those goals, and is somewhat of a social experiment to see if we can work together to take action. I’ll continue to provide updates and data about the results as we proceed through February.
Thanks for reading and good luck!
Q: But jabbey is in the top 20! Do you want me to redelegate from jabbey?
A: Yes, if it helps you achieve the criteria that 50% of your delegations go to the validators indexed 21–100.
Q: I redelegated to a validator and now their in the top 20, what should I do?
A: Let’s wait and see. I’ll be taking many snapshots along the way to monitor the changes to the validator set.
Q: What’s in this for you, jabbey?
A: The overall network gains a much stronger position, and a lot of fun data.