CSM v2 Features - Part 2: Variable Node Operator reward share
Unlike v1’s flat reward share, v2 introduces a differentiated reward structure based on Node Operator type and the number of active validators.
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Node Operator reward structure highlights:
• 3.5% default reward share
• 6% exclusive reward share for the first 16 validators per Identified Community Staker (ICS)
Additionally, staking rewards continue to accumulate on the bond in addition to Node Operator rewards.
For CSM to scale effectively, it must strike a competitive economic balance:
Maximizing value for the protocol and independent Node Operators while remaining attractive against other modules and the broader home staking market.
As an ICS, potential rewards per ETH of staked capital can reach up to 2.36x those of solo staking.
Meanwhile, permissionless participants see a lower multiplier (up to 1.76x), helping prevent queue-filling by professional operators and creating more space for independent ones.
To enable secure scaling to a double-digit share of the protocol’s stake, CSM v2 introduces additional improvements, including:
• Improved Performance Oracle
• Strikes System
• EIP-7002 Integration
More on these later!
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