Stake Parameters

What You'll Learn

• Understanding both validation staking and reputational staking mechanisms on Allora Network
• How different staking types serve different network functions and participant roles
• Complete overview of staking parameters and their impact on network security and economics
• The relationship between staking parameters and network decentralization

Overview

Parameters that affect both kinds of staking featured by Allora

There are two types of staking in Allora Network which run through different staking mechanisms: Validation staking and Reputational staking.

Dual Staking Architecture

Validation staking comes from the popular staking module on Cosmos SDK. It is used when staking into Validator nodes.

Reputational staking is specific to Allora Network, and it is used to stake into Worker and Reputer nodes.

The parameters for the two types are specified below.

Why Dual Staking Systems?

Specialized Functions:

• Network security: Validation staking secures the blockchain consensus layer
• Quality assurance: Reputational staking ensures AI/ML inference quality
• Role separation: Different staking types serve distinct network functions
• Economic optimization: Separate systems allow optimized incentives for each role

System Benefits:

• Flexible participation: Users can stake in validators, workers, or reputers based on expertise
• Risk distribution: Multiple staking types distribute network security across functions
• Specialized rewards: Different reward structures optimize for different contribution types
• Network resilience: Multiple staking systems provide redundant security mechanisms

Reputational Staking

Parameters from the reputational-staking module on Allora Network. These are parameters for staking into reputers and workers.

These parameters are defined as "Chain Parameters" and can be found here.

Key Reputational Parameters

The parameters of concern to reputers in particular are:

• required_minimum_stake
• remove_stake_delay_window

Parameter Integration

Chain Parameter Reference:

• Centralized management: Reputational staking parameters are managed as chain-wide settings
• Governance control: Parameters can be adjusted through network governance proposals
• Unified policy: Consistent application across all reputers and workers
• Dynamic adjustment: Parameters can evolve with network needs and conditions

Economic Design:

• Quality incentives: Minimum stake requirements ensure serious participation
• Security delays: Stake removal delays protect against rapid manipulation
• Risk management: Parameters balance accessibility with security requirements
• Network health: Settings optimize for long-term network stability and growth

Validation Staking

Parameters from the validator-based staking module on Allora Network

Core Validation Parameters

unbonding_time

Sets the duration for which tokens remain bonded after initiating the unbonding process.

Value: 1814400s (3 weeks)

Standard value.
A longer unbonding time enhances security by discouraging malicious actors and stabilizes token supply dynamics, but too long a period may inconvenience users who want to unstake their tokens promptly. This setting achieves a reasonable trade-off.

Unbonding Period Strategy:

• Security enhancement: Long unbonding period deters malicious validator behavior
• Economic stability: Prevents rapid stake withdrawals that could destabilize network
• Attack prevention: Makes it expensive to execute certain types of network attacks
• User consideration: Balance security needs with reasonable user experience

Duration Analysis:

• 3-week period: 21 days provides substantial security buffer
• Industry standard: Comparable to other Cosmos-based networks
• Economic impact: Sufficient time for slash conditions to be discovered and applied
• User planning: Allows users to plan for capital lockup periods

max_validators

Sets the maximum number of validators allowed in the network.

Value: 100

Standard value.
It balances decentralization with network scalability. It will be regularly assessed and adjusted based on the network's growth and decentralization.

Validator Limit Strategy:

• Decentralization balance: Sufficient validators to ensure network decentralization
• Performance optimization: Manageable number for efficient consensus operations
• Entry opportunity: Reasonable limit that allows new validators to join
• Network evolution: Can be adjusted as network grows and matures

Network Implications:

• Consensus efficiency: Smaller validator sets can reach consensus more quickly
• Security distribution: 100 validators provide strong security through distribution
• Competition dynamics: Limited slots create competitive environment for validator quality
• Geographic distribution: Enough slots to encourage global validator distribution

max_entries

Determines the maximum number of entries in the staking transaction pool.

Value: 7

Standard value.
This parameter limits the number of concurrent staking operations to maintain network efficiency while still allowing reasonable flexibility for staking activities.

Entry Pool Management:

• Concurrency control: Limit simultaneous staking operations to prevent network congestion
• User flexibility: Allow multiple pending operations for user convenience
• Resource management: Control memory and processing requirements for staking operations
• Network efficiency: Balance functionality with performance requirements

Operational Impact:

• Transaction throughput: Affects how many staking operations can be processed simultaneously
• User experience: Impacts user ability to perform multiple staking actions
• Network performance: Influences validator resource requirements
• System stability: Prevents excessive concurrent operations from overwhelming the system

Additional Validation Parameters

historical_entries

Controls the number of historical entries maintained for staking operations.

Value: 10000

Standard value.
This parameter balances data availability for queries and analysis with storage efficiency, ensuring that sufficient historical data is maintained without excessive storage requirements.

Historical Data Strategy:

• Query support: Sufficient history for analysis and verification needs
• Storage efficiency: Limited retention prevents excessive blockchain storage growth
• Audit capability: Historical entries support network analysis and troubleshooting
• Performance balance: Adequate data without impacting node performance

bond_denom

Specifies the denomination used for validator staking.

Value: "uallo"

Network Consistency:

• Standard denomination: Use network's base denomination for all staking operations
• Economic integration: Align staking currency with network token economics
• System simplicity: Single denomination reduces complexity and confusion
• Network coherence: Consistent currency across all network functions

Parameter Interactions

Cross-System Coordination

Integrated Design:

• Dual staking support: Parameters accommodate both validation and reputational staking
• Economic alignment: Different staking types contribute to overall network security
• Resource optimization: Parameters balance different types of network participation
• Security layering: Multiple staking systems provide comprehensive network protection

Economic Balance

Incentive Structure:

• Validator rewards: Validation staking parameters influence validator economics
• Quality incentives: Reputational staking parameters drive AI/ML quality
• Participation balance: Parameters encourage appropriate participation in each system
• Network sustainability: Settings support long-term network health and growth

Staking Strategy Considerations

Validation Staking Strategy

Validator Participation:

• Long-term commitment: Unbonding period requires serious commitment to validation
• Infrastructure investment: Validation requires significant technical infrastructure
• Network responsibility: Validators bear responsibility for blockchain security and consensus
• Competitive environment: Limited validator slots create competitive dynamics

Reputational Staking Strategy

AI/ML Participation:

• Specialized knowledge: Reputational staking rewards AI/ML expertise
• Quality focus: Staking parameters incentivize high-quality inference provision
• Flexible participation: Multiple roles (worker, reputer) provide participation options
• Performance-based rewards: Staking success depends on AI/ML performance quality

Security Implications

Network Protection

Multi-Layer Security:

• Consensus security: Validation staking secures blockchain consensus layer
• Quality security: Reputational staking ensures AI/ML inference quality
• Economic security: Both staking types require economic commitment
• Behavioral incentives: Parameters incentivize honest and quality behavior

Risk Management

Attack Prevention:

• Economic cost: Both staking types make attacks expensive
• Time delays: Unbonding periods prevent rapid attack execution
• Quality control: Minimum stakes ensure serious participation
• Diversified risk: Multiple staking systems distribute security risk

Best Practices

Parameter Monitoring

Performance Tracking:

• Validator distribution: Monitor geographic and ownership distribution of validators
• Staking participation: Track participation rates in both staking systems
• Network security: Assess overall network security through staking metrics
• Economic health: Monitor staking economics and participant satisfaction

Optimization Strategies

Network Tuning:

• Validator limits: Adjust maximum validators based on network growth
• Unbonding periods: Balance security needs with user convenience
• Entry limits: Optimize transaction pool sizes for network efficiency
• Historical retention: Balance query needs with storage requirements

Prerequisites

• Staking concepts: Understanding of proof-of-stake mechanisms and validator economics
• Network security: Knowledge of blockchain security models and attack vectors
• Economic principles: Understanding of token economics and incentive structures
• Technical operations: Familiarity with validator and network node operations

Next Steps

• Study chain parameters for reputational staking parameter details
• Explore mint parameters for understanding staking reward economics
• Review consensus parameters for validator operational requirements
• Learn about validator operations for practical staking implementation