Fantom slashes validator stake requirement by 90% to 50k FTM

The Fantom blockchain has recently implemented a significant change to its validator self-stake requirement, decreasing it from 500,000 to 50,000 FTM. This move, decided by a governance vote, is aimed at making the role of a validator on the network more accessible to a broader range of participants.

1/ Based on a governance vote, we recently reduced the validator self-stake requirement from 500k to 50k FTM, making it more accessible than ever to run a #Fantom validator.

But we've been asked:
"How does an increase in validators impact Fantom?"

Well, let's find out 🧵 pic.twitter.com/H8AfnT5Itv

— Fantom Foundation (@FantomFDN) January 15, 2024

A key aspect of any decentralized network is the number of validators that maintain the system. More validators equate to a more robust defense against attacks, making it more difficult for malicious entities to compromise the network.

With the lowered stake requirement, Fantom expects to see an increase in the number of validators. This increase is anticipated to enhance network security without affecting the network’s performance.

Fantom’s consensus mechanism, known as Lachesis, operates on a principle where validators confirm transactions independently and then share these confirmations with others. This system differs from the likes of Ethereum, where all validators work on the same transactions.

Transactions are likely to be distributed to validators more rapidly due to the higher number of nodes, potentially speeding up the transaction bundling process. However, reaching two-thirds consensus among a larger pool of validators might take slightly longer.

Despite these changes, the network’s performance is not expected to suffer. Quality hardware and the continued dominance of larger validators in the consensus process should maintain the network’s current 1-2 second finality time. Moreover, the reduction in self-stake requirements is not seen as a security risk.

The influence of a validator is still proportional to their stake, ensuring that the power dynamics within the network remain balanced.