Decentralization Vanguard: Launching ssv.network’s Incentivized Mainnet
The ssv.network is here to help Ethereum face its centralization challenges. Staking services and Liquid Staking Tokens (LSTs) are slowly taking root and currently hold the majority of staked ETH. This means competing for ETH stakers becomes increasingly competitive, necessitating a focus on end-user applications, LST liquidity, and maximized returns.
TL;DR
- Why is the Decentralization Vanguard important?
- Powering decentralization through adoption
- Mechanics of the incentivization program
- Vote for the Decentralization Vanguard
A Commitment to Protecting Ethereum
From the SSV perspective the solution to centralization lies in the widespread adoption of DVT (Distributed validator technology). The ssv.network enables this by offering versatile infrastructure, seamless reconfigurability, and promoting innovation through an open protocol that supports the deployment of decentralized staking applications. The Decentralization Vanguard are the Launch partners, grantees, node operators, builders, and stakers that are incentivized to spearhead decentralization in their unique ways.
This spirit of collaboration is evident when looking at the list of partners that are co-creating a DVT-based staking ecosystem. We’re not in a race against them; we’re running alongside them, aiming to strengthen individual stakers and the network as a whole.
To expand DVT adoption, the SSV DAO has introduced a 12-month incentivization program in which early DVT adopters will be rewarded with an APR boost of up to 50% on their staking rewards. The detailed proposal can be found in the SSV DAO Forum and will be voted on in Snapshot. The Core team will also be hosting an AMA on the 25th of October regarding the incentivization program. Don’t miss out!
This post will give an overview of why the decentralization vanguard is essential, how they help decentralize Ethereum, and an overview of the mechanics, conditions, and reward distribution of the program.
Empowering Adoption Through Incentivization
The ssv.network is a revolutionary staking infrastructure that’s been developed for the last 2.5 years. New innovations like DVT — at the end of the day — benefit the end users who are looking for safe, innovative, and rewarding solutions to stake with, compared to current solutions.
Ssv.network gives builders the tools to create the next go-to DVT-based staking applications. The more innovation happening, the larger the ETH distribution between DVT-powered staking services will be. To help make this a reality, the SSV DAO has proposed a one-year-long incentivization program that benefits both builders and stakers.
Because ssv.network understands that enduring legacies aren’t built overnight. The ecosystem opts for precision over speed and collaboration over competition, the network has set the course, not just followed it. It’s not a race; it’s a collective journey to elevate an entire ecosystem.
Incentivization, acts as a catalyst, driving user engagement and commitment. It encourages users to explore, provide feedback, and actively participate in the product’s evolution. Together, adoption and incentivization form a virtuous cycle, as more users attract more contributions and ideas, ultimately shaping a product into something indispensable and widely used.
For Builders:
The ssv.network is already employed by multiple projects in the SSV DAO grants ecosystem. As well as industry leaders that are planning to integrate it as part of their existing staking offering — Including Lido, Stakewise, and Rocketpool.
For Stakers:
Stakers that want to get involved can either stake through Launch partner applications or stake directly with ssv.network after the permissionless launch phase. Launch Partners applications are set up differently, so ensure the application allows for reward sharing.
The underlying motivation is not only to foster decentralization but also to position ssv.network as a growth catalyst for builders to empower the staking ecosystem.
Diving into the Mechanics
The program is set to run for 12 rounds, each spanning one month, starting retroactively from epoch 232538 to epoch 314887. However, it may be concluded earlier if the rewards are exhausted.
To participate in the Incentivized Mainnet, validators must have registered to the ssv.network on or after October 1, 2023, until the end of the program or until the SSV tokens in the Dedicated Multi-Sig wallet are exhausted.
Validator rewards are determined by performance, based on Beacon Chain attestations during each round. Performance is gauged by the number of active days within that round, with validators active at least 90% of the time being rewarded more than those active for only a portion of it.
During this time, validators on the mainnet will be rewarded with SSV tokens based on a tiered rewards system. This system is engineered to provide maximum incentivization in the program’s early days while reducing the SSV mint numbers as the program progresses.
Ensuring rewards are in line with the boosted APR, the price of ETH and SSV will be recalculated monthly. If the price of SSV falls below $10, it will be set to a minimum of $10 per SSV. The program will be capped at 30,000 eligible validators. Any validator joining beyond this cap will not be eligible.
For more specific information about eligibility, have a look at the proposal.
Reward Distribution and Ownership
All rewards will be distributed on a round-by-round basis. Rewards are claimable on the Ethereum mainnet using the 1Inch cumulative Merkle distributor contract. This contract will be owned and controlled by the DAO multi-sig committee. Any unclaimed rewards will be carried over to the next round of distribution. After one year from the program’s end (October 1, 2025), unclaimed rewards will be returned to the DAO treasury.
Ensuring a Fair and Ethical Program
Abusive behavior will not be tolerated and may lead to exclusion from the incentivization program, with decisions made by the Grants Committee.
Empowering the Future of Staking
The Decentralization Vanguard represents a groundbreaking leap in the journey of ssv.network. By offering incentives, the DAO aims to draw in participants, foster DVT adoption, and establish SSV as a prominent player in the staking infrastructure landscape. Venturing into this new phase, the ecosystem looks forward to welcoming validators, contributors, and builders who share the vision of a more decentralized and vibrant Ethereum Staking ecosystem.
Remember to Vote
In the end, adoption isn’t just about getting users; it’s about creating a community of advocates who breathe life into a product, ensuring its longevity and relevance in an ever-evolving tech landscape. Join the SSV community and get rewarded for it. And don’t forget to vote!
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