In light of the recent introduction of Partial Set Security (PSS) and its new economic modeling for rewards distribution, we believe this is an ideal time to revisit our conversation to include these new perspectives. With PSS, consumers now operate on a curated subset of validators, and the rewards they distribute are allocated exclusively among the delegators of these active validators. This creates an intricately granular system of supply and demand for security offerings. It is important to remember that PSS includes two variable models: the Opt-in system and the Top-N, which Neutron and Stride have transitioned to. These alternative models offer distinct economic frameworks, where a set of validators is required to operate to ensure that a specific percentage of ATOM security is replicated on the consumer.
If you want to learn more about PSS, feel free to read our comprehensive post about this new economic model: PSS Financial Model.
To reassess a fruitful context for the “should we consider redirecting ICS rewards?” discussion, we propose limiting the scope to Top-N chains only. The Opt-in model is a free-market approach, whereas Top-N is more community-oriented. In our review, we predicted that Top-N would likely be restricted to core public-good infrastructure and strong political hub alignment. We believe the community should consider the possibility of changing the ICS-TopN redirection model.
Thanks for reading,
Govmos.