Hi, just in case you didn’t read the explanation from Riley included above:
‘The Validator Liquid Staking Cap is the share of each validator’s total delegated ATOM that can be provided by one or more liquid staking provider(s). For example, if the parameter is set at 80% and a given validator already receives 80% of its ATOM from either LSM tokenized shares or interchain accounts (ICAs) - then Cosmos Hub prevents further LSM tokenizations and ICA delegations to that validator. If the parameter is set at 100% then validators can receive an unlimited amount of liquid staking provider delegations from ICAs, as they can today.’
‘Thankfully, the attack vector that the Validator Liquid Staking Cap prevents against is fairly unlikely, and this parameter is fully in control of Cosmos Hub governance. So governance can choose to set the parameter to 100%, effectively turning off the parameter. I would recommend that when the liquid staking module upgrade goes live, a governance proposal be introduced to set the parameter to 100%.’
It is not rushed, the discussion about this started over a month ago the 26th August in this thread, and the Stride and Informal Systems teams also participated in the discussion: # [PROPOSAL 821] [Passed] Gaia v12 Upgrade - #3 by Cosmic_Validator