PEP-40: Stake Weighted Servicer Rewards (PIP-22) Development Reimbursement


Author(s): Andy Pohl (@Andy-Liquify )

Recipient(s): Liquify

Category: Reimbursement

Asking Amount: 570000 POKT ($57k at 10cents)


The goal of this proposal is to fairly compensate the liquify team for the time and implementation on PIP-22, and PUP-21. This proposal was vital for network security and scalability. The scaled weighting scheme that was developed allowed for both fast deployment and significant cost savings for the community than other proposed weighting systems, while having additional benefits over others.


Liquify labs has deployed an update to the pocket core client that allows for node consolidations, by increasing max stake and scaling the servicer rewards based on the amount staked to the node. A PR was submitted with completed implementation here along with QA test cases here

Additionally, Liquify partnered with @msa6867 in order to provide the optimal parameters for PIP22 (PUP21):

The process of deploying these from ideation to coding, testing, and QA has taken around 1 month of our team’s time since early June 2022. The final implementation has been submitted to the POKT core team which was reviewed and merged in mid July 2022 to form part of release RC0.9.0.


Our main motivation was to decrease the network running costs, increase network security and reduce block bloating. All of these have been achieved by PIP22 in a timely and easy to understand manner. PIP22 was a novel approach to stake weighting which had not been identified prior to our original proposal. It only affects 1 unit of the code base (reward calculation) without touching the session selection algorithm, which makes it far simpler and less risky to deploy.

Proposal Objectives

The goal of this proposal is to receive a reimbursement for the time spent deploying, optimising, testing, and fixing the PIP-22 implementation and PUP-21 parameters.

Liquify plans to continue to help maintain these changes as well as continue to support the community in future network upgrades needed both in ideation and implementation, for example we have recently posted a new PUP to help secure the network from double signing (PUP-24: Increase SlashFractionDoubleSign - #10 by Andy-Liquify).

PIP-22 and PUP-21 Objective

  • Lower costs for node runners.
  • Increased network security with the increase in validator threshold caused by the stepping of PIP22.
  • Reducing node count at a protocol level allows for a faster healthy network with reduced bloating.
  • Increasing the amount of pokt staked per node allows more people and capital to be locked up while securing the network and allowing the ecosystem to continue to become more decentralized.

Dissenting Opinions

This seems like a lot to pay for a PIP.

The amount of compensation was calculated using the Proposal Value Model the main factor of which is physical development time.

Additionally the cost saving to the network is upto 80% (depending on the level of consolidation). Pre-PIP22 there were around 45k nodes on the network. Assuming a 50% node reduction/consolidation (fairly modest) to 22.5K nodes, and given the average cloud costs to run a node as $100 this results in a total saving of $2.25 million dollars in infrastructure costs (PER MONTH). This is an extreme case of a much needed network upgrade for security and long term sustainability purposes.

All the main implementation work was done by our highly skilled DEV team with minimal input from the core team (other than with QA support) this allowed POKT core team to work intandem on other important network improvements.

We will be locking 100% of the token received into nodes for the next 6+ months.

With light client is this needed?

Yes, we have been advocates that PIP22 goes hand in hand with light client. PIP22 has advantages over “off chain” consolidation mechanisms. PIP22 reduces the node count at a protocol level this helps make the network more efficient. PIP22 also helps improve network security by vastly inflating the validator threshold. PIP22 is also fully governed by the DAO allowing them to adjust consolidation parameters as they see fit.

Why couldn’t the core team just do this?

The technical overhead needed in order to come up with this solution was unique for Liquify’s team of developers and infrastructure experts. Specifically, the request for PIP-22 deployment and updates was requested by many of the core team members allowing the team to focus on other important updates.

Deliverables (all completed)

  1. Propose PIP-22 in forum
  2. Pass PIP-22 in a vote
  3. Define PUP-21
  4. Deploy PIP-22 with PUP-21 parameters
  5. Provide the DAO with a script to track consolidation


The total reimbursement requested for this proposal is 570000 POKT. This is the amount that was calculated using the Proposal Value Model. As a gesture of goodwill to @msa6867 for his support in PUP21 and modelling of a post PIP22 network we intend to allocate 62000 pokt from this proposal to host and stake a node on his behalf.

We have also committed to locking 100% of the tokens from this proposal in nodes for the next 6+ months.


We would also like to thank the Pocket core team who supported us with QA testing. @JackALaing and @luyzdeleon who helped shape the final PIP22 proposal and @msa6867 for the support on modelling, PUP21 and suggestions of a non-linear scaling with the use of an exponent.


Copyright and related rights waived via CC0.


I support this proposal, although I think @msa6867 played a bigger role than just 10%. Doubling that amount to 124k total would be better.

1 Like

Thanks @ethen ,

The ask from this PEP is mostly about the reimbursement of the dev work, design and testing done for PIP22 (this makes up most of the ask from the reimbursement model). It doesn’t factor in any of @msa6867’s time I believe he actually covers his work on PIP22 and PUP21 in PEP39. Our “donation” to MSA here is more of a thank you payment (covered by our development reimbursement) rather than a reimbursement for his activities surrounding PIP22. :slight_smile:


solid! tnx for the response champ.


Support this proposal, weighted staking is a very valuable feature addition and the reimbursement requested seems entirely in line with the work done to bring the feature to fruition.


I support this proposal

Your work is hugely valuable for the cost and security of our network. From our own experience with Lean Pocket, I know that being an external contributor is not easy and requires distraction from your own work, so I commend your efforts, time, and dedication. Thanks!


This proposal is now up for voting Snapshot

1 Like

I support this proposal.


I support this proposal. Thanks for all that went into this @Andy-Liquify and team.


This proposal was approved with 16 approvals and 0 rejections. Snapshot