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No ability for validators to return/remove delegated tokens from their node. #12

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fileflume opened this issue Jan 13, 2020 · 3 comments

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@fileflume
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There is no ability for node operators (validators) to return/remove tokens delegated to their node by third parties.

For example - using 100k stake requirement.
Validator stakes 70k
Delegator stakes 30k
Validator Fee is 10%

After some time the validator wants to put in 30k tokens to have 100% of the node. They have to ask the delegator to remove their delegated tokens first, before staking their 30k tokens.

This may be possible where the validator knows the delgator.

However, in a full decentralised network, validators will not know their delegators and be unable to remove their tokens from their nodes. They will therefore be unable to manage their nodes fully.

This may not be a significant issue regarding validator rewards, as the validator could increase their fee to 100%. People will usually remove their tokens by choice.

However, other wallets may have been forgotten about, passwords lost etc. These would never be removed.

Also, it would mean validators would not be able to comply with legal requests to stop using 'illegal wallets'. The validator would not be able to do so without taking the whole node offline - which is a way to resolve the issue, but not a very elegant one.

@bejavu
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bejavu commented Jan 14, 2020

This is a temporary issue that will be solved in FIP4 when there won't be any maximum staking limit for a validator stake.
THe validator will not be able to remove delegatore staking, but it won't be a problem any more since it will give the validator more validating power.

@bejavu bejavu closed this as completed Jan 14, 2020
@fileflume
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Is this confirming that there will never be a way for validators to remove delegated tokens from their nodes?

Does this impact governance of the network i.e. validators have to accept that they have no way to remove delegated tokens. Are there any legal implications for this?

For example - a validator set up as a limited company bound by UK law. The police requested that a certain wallet was not used for delegating (because it was the product of crime etc), how would the validator remove these delegated tokens from it's node?

@LiorRabin LiorRabin reopened this Jan 19, 2020
@CrackerHax
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A workaround could be to just create a new wallet to validate from.

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