Correction: The previous version of this article incorrectly called Polkadot a layer-1 solution. But in reality, it is a layer-0 blockchain solution. CoinChapter regrets the inconvenience caused.
- Polkadot updated its staking mechanism by increasing the minimal bond.
- DOT jumped 10 percent, compliant with the rest of the market, and Bitcoin’s recovery.
YEREVAN (CoinChapter.com) – DOT token ascended by 10 percent, while its native Polkadot layer-0 multichain ecosystem introduced a proposal to raise the staking threshold from 80 DOT to 120 DOT. The proposal passed the voting and was executed on Sep 22.
However, the ecosystem reached the current limit of 22,500 possible nominators, so the team suggested updating the staking parameters.
Polkadot’s shift in staking
Polkadot uses a proof-of-stake consensus mechanism; it needs validators to monitor each transaction. It also needs nominators, i.e., nodes ready to stake their DOT tokens behind validators to earn rewards.
Polkadot’s staking system is complex mainly due to multiple parallel chains (parachains) on the mainnet. Thus, solving the security issue became more prominent.
Since security is its main goal, Polkadot has been designed with a complicated, and strict staking system, optimized for locking the most amount of tokens at stake while spreading that stake as evenly as possible to maximize decentralization.says the monthly report on staking mechanism optimization.
As mentioned, the Polkadot ecosystem has 22,500 nominators, the maximum number that the current configuration allows. However, the proposal sought to increase the number by pulling the minimal bond to 120 DOT.
The proposal has the goal to increase the minimum bond to allow new nominators above the threshold to participate in the network’s security mechanism, and for less staked nominators to be chilled.[…]The team aims to increase the limit enough so that we won’t need to do another tweak for at least a month.specified the team.
According to the announcement, Polkadot developers are working on eliminating the minimal threshold. The increase to 120 DOT is a temporary measure, giving them more time to figure out ways to bypass the issue.
Bill Laboon, the Technical Education Lead at Polkadot’s Web3 Foundation, tweeted the latest news in a thread.
DOT daily chart
While the Polkadot staking proposal did not necessarily mean a bullish progression for DOT, the latter gained 10 percent in the past 24 hours. After the latest crash on Sep 20, green candles popped on many altcoin charts. The uptrend complied with the ubiquitous recovery on the crypto market, led by Bitcoin.
DOT sought support from the $26.3 line early in the Asian-Pacific session on Wednesday. As a result, the DOT/USD pair traded at $28.1 after the London session opening bell. However, it still has a confluence of resistance to conquer.
If DOT can get through the resistance bar at $28.5-30.0, the digital asset could retest it as support in an uptrend. Moreover, the 50-day simple moving average (SMA-50) could also prove instrumental in assisting. DOT managed to break through it, but not with much confidence yet.