Deadline 5/28/2025
Background
The original intent of the F-Chains program was clear: ensure coverage for long-tail, low-volume chains that otherwise wouldn’t be supported due to low relay counts and limited market value. That mission still matters. These chains are essential to network breadth, redundancy, and long-term resilience.
However, the current model, based on ongoing DAO payments, is too expensive and no longer sustainable. We need a new approach that continues supporting these chains without depleting DAO resources.
The Solution
Instead of direct payouts, we will leverage DAO-held POKT to stake on behalf of node runners (NRs) who agree to serve long-tail chains. This model:
- Preserves the DAO treasury by using staked assets, not recurring spend
- Aligns incentives with node runners through shared rewards
- Ensures comprehensive coverage for long-tail chains with flexibility for scale
Structure & Customization
The DAO will allocate ~96M POKT to fund a set of customized node runner packages. Each package is built in collaboration with the participating node runner based on the chains they serve.
- 8 node runners have opted in
- Each will receive a tailored package based on their setup
Packages will include:
- 3–7 Validators (100K POKT each)
- 22–32 Servicer Nodes per chain, depending on long-tail chain coverage needs
- All packages will include a mix of high-traffic and long-tail chains
Revshare Terms:
- High-traffic chains: 50/50 split between Foundation and node runner
- Low-traffic (long-tail) chains: 100% of servicer rewards go to the node runner
Participation Deadline:
Any additional node runners who want to be considered must reach out by May 28, 2025. After that, final allocations will be made and staking will proceed.
This model keeps our commitment to long-tail chains intact while transitioning to a financially sustainable and operationally scalable structure. Feedback and refinements are welcome.
Frequently Asked Questions (FAQ)
Q: Why are we ending the current F-Chains payment model?
- A: The current model relies on ongoing DAO payouts, which are not sustainable long-term. This proposal shifts to a staking-based model that uses DAO-held POKT more efficiently while ensuring chain coverage.
Q: How does this benefit node runners?
- A: Node runners receive staked POKT with no upfront capital required and earn rewards from the chains they support. They get 100% servicer rewards from long-tail chains and a 50/50 split on high-traffic chains.
Q: Will all long-tail chains be covered?
- A: Yes. The goal is complete coverage across all long-tail chains with at least 10 nodes per chain. Packages are being customized to ensure this.
Q: What happens if more than 8 node runners want to participate?
- A: Anyone interested must express interest by May 28, 2025. If more than 96M POKT in total allocations is needed, the DAO can reassess based on available resources.
Dissenting Opinions & Considerations
We recognize that not everyone may agree with this approach. Here are some anticipated concerns and how we’re thinking about them:
Concern: This reduces guaranteed income for node runners.
- Response: While it removes fixed payments, it offers upside potential and long-term sustainability. Node runners still earn 100% of long-tail rewards and share in high-traffic rewards, with DAO staking reducing their capital burden.
Concern: What if this doesn’t result in full long-tail chain coverage?
- Response: Node runner participation is secured before launch, and package design ensures coverage. The Foundation can adjust allocations or open new participation rounds if a gap emerges.
Concern: Why not just keep paying node runners directly?
- Response: Direct payments are a short-term fix with a long-term cost. Staking leverages treasury assets productively and aligns incentives in a more sustainable way.