Kleros Founder Proposes 10% Ethereum Validator Redirect Rate for Infrastructure Funding

Clément Lesaege, founder of Kleros and Proof of Humanity, proposed a validator redirect rate mechanism that would allow Ethereum validators to direct up to 10% of their staking income toward ecosystem infrastructure funding. The proposal addresses what Lesaege calls the 'free rider problem,' where individuals and institutions benefit from joint infrastructure investments without contributing. Until now, Ethereum's joint infrastructure funding has been handled by the Ethereum Foundation or interested third parties.

Lesaege Proposes 10% Maximum Validator Redirect Rate for Ecosystem Funding

The proposal establishes a redirect rate at the protocol level, allowing validators to direct part of their staking income to organizations managing funds for Ethereum ecosystem collaboration. The mechanism would only activate if the majority of validators agree to implement it, but becomes mandatory for all validators in the Ethereum network after that point.

Validators can set the recipients of these funds and the percentage they receive, up to a maximum of 10%, at any point. Lesaege argues that validators should bear the burden of these expenses rather than relying on the Ethereum Foundation.

"Successfully coordinating shared investment is essential to compete with both traditional economic systems that use coercive measures like taxation to reduce their deadweight loss and corporations that reinvest earnings back into future growth," Lesaege stated.

The proposal acknowledges that validator cartelization might arise, as validators could theoretically increase the redirect rate and redirect those funds back to themselves.

Community Criticism Labels Proposal as Tax and Communist Measure

The proposal has been received by the Ethereum community with criticism on social media. Community members have classified it as "communist" and called it a "tax."

"So paying taxes now? After the ethereum foundation kept dumping their own ethereum. What came out of this ecosystem anyway and was it all worth it?" said Via Network's Romano.

FAQ

What is the maximum redirect rate proposed by Clément Lesaege for Ethereum validators?

The proposal establishes a maximum redirect rate of 10% of validator staking income that can be directed toward ecosystem infrastructure funding.

How would the Ethereum validator redirect rate mechanism be activated?

The redirect rate would only activate if the majority of validators agree to implement it, but becomes mandatory for all validators in the Ethereum network after that point. Validators can set the recipients and percentage at any point up to the 10% maximum.