Validator Redirected Revenue

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Validator Redirected Revenue

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A proposal for Ethereum argues that validators should redirect part of their staking rewards to ecosystem funding to address a free-rider problem that leaves shared infrastructure underfunded. Under the design, validators signal a redirect rate capped at 10%, and if 51% of validators signal a rate above 0, the redirect becomes mandatory for all validators. At current levels of 35-40 million staked ETH and 1.91% rewards, a 5-10% redirect would provide about 50-70k ETH per year. Recipient splits would be chosen every 128 blocks (about 5 minutes) through a King of the Hill mechanism that keeps whichever splitter contract is closer to validators' preferences, measured by Manhattan distance.

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