Introduction
StaFi has completed the first phase of validator set optimization, reducing validators from 160 to 100 and lowering inflation from 10% to 6%. This established a more efficient and stable token‑economic baseline for future adjustments.
The second phase proposes reducing the validator set further from 100 to 60, ensuring stable chain operation while creating the structural conditions needed for the planned inflation reduction (6% → 2%). Optimizing validator distribution in advance improves incentive efficiency and prepares StaFi Chain for a smooth transition toward a leaner and more sustainable token model.
This phased optimization strategy ensures that network security, cost‑efficiency, and validator incentives remain aligned with StaFi Chain’s long‑term evolution toward an AI‑driven LSaaS (Liquid Staking as a Service) infrastructure.
Current Status
- Total FIS Supply: 154,861,463 FIS
- Current Inflation Rate: 6%
- Current Burn Rate: ~4% (dynamic)
Annual validator rewards under the same inflation conditions:
| Validator Slots | Annual Reward per Validator |
|---|---|
| 100 slots | 92,916 FIS |
| 60 slots | 154,861 FIS |
Reducing the validator set from 100 to 60 increases the annual reward per validator by approximately 61,944 FIS, significantly improving validator incentives and reinforcing the security of StaFi Chain.
Rationale
1. Align Inflation Reduction with Stronger FIS Value Capture
Lowering inflation from 6% to 2% reduces token issuance and alleviates secondary‑market sell pressure. Combined with the ongoing burn mechanism, this adjustment strengthens FIS’s long‑term value structure and minimizes dilution.
A reduced inflation environment enhances protocol‑driven value capture, ensuring that growth in LSaaS modules and SubDAO use cases more effectively translates into FIS value. Establishing this foundation early allows StaFi Chain to adopt sustainable tokenomics consistent with its AI‑driven LSaaS roadmap.
2. Improve Incentive Efficiency and Build a Stronger Validator Set
Reducing the validator set from 100 to 60 increases incentive density, concentrating inflation rewards among fewer validators. This enhances validator profitability, encourages long‑term participation, and maintains efficient network operation while preserving acceptable decentralization.
The resulting 61,944 FIS increase in annual validator rewards deepens economic alignment and strengthens validator commitment to network security and governance.
3. Align with StaFi’s AI + LSaaS Strategic Direction
StaFi is transitioning from a multi‑chain LSD system into an AI‑driven LSaaS infrastructure. Under this architecture, a lighter validator set and lower inflation reduce operational overhead and improve governance efficiency, allowing StaFi to allocate more resources toward AI‑powered LSaaS modules and ecosystem expansion.
These adjustments together ensure that validator incentives, network architecture, and token‑economic design remain aligned with StaFi’s long‑term direction.
Conclusion
This proposal is now open for community feedback. We welcome all members to share their thoughts and suggestions in the designated forum thread. If no strong objections arise during the discussion period, the proposal will proceed to implementation after a one-week discussion window.