NFTs for Node Operators
Keeping Ethereum decentralized by issuing NFTs for operating your own staking node
Centralization Threat to Ethereum
In order to provide maximum security and freedom for its users, the Ethereum network must be as decentralized as possible.
However, Ethereum staking is becoming too centralized due to liquid staking pools. 31% of all staked ETH today is staked through the largest pool, Lido. This centralization point introduces risks such as censorship attacks, which we know nation-states are all too eager to exploit.
To remain decentralized, Ethereum needs individuals operating their own staking nodes. But the problem is that the incentives to do so are very weak relative to staking through liquid staking pools. For more background on this, see here.
Incentivizing Node Operators
To combat this problem, we need to incentivize stakers to operate their own nodes (either by solo staking or by becoming a node operator for Rocket Pool). Both of these contribute to keeping Ethereum free, secure and censorship-resistant.
This is what inspired the ‘NFT for Node Operators’ project.
NFTs for Node Operators
This is a community-funded project to issue NFTs to node operators (direct stakers as well as RocketPool node operators) as an added incentive to operate a node. One NFT would be issued per operator, regardless of how much ETH they are staking.
The entire funding amount will be directed toward the NFT artists. That being said, the funding for this project is limited, and the artist(s) participating should view this as a public good, and be primarily motivated by the desire to keep the Ethereum network decentralized. This is the motivation which drives us as the project management team (we are taking zero compensation).
It is also worth noting the NFTs themselves will be non-transferrable. Since they cannot be sold, they will carry no monetary value to the recipients.
Instead, the NFTs will serve the following purposes:
- PFPs denoting that the recipient is helping keep Ethereum decentralized
- Strengthen a sense of community between node operators
- NFTs can be upgraded over time, giving a feeling of character progression as people stake over longer periods of time
- They could be used as tickets to certain events or to gain discounts or special access at events.
Character Progression
Although only one NFT will be issued per operator at any one time, multiple NFTs will be issued over time.
Node operators will receive one NFT pre-merge, and another post-merge, and then another every 12 months.
Each type can be combined w/ subsequent types, so node operators can progress over time.
This gives a sense of 'character progression' as people stake longer, and grants bragging rights to those who have been staking the longest.
Ultimately, it not only incentivizes operating a node, but to continue operating it over time.
Title
Although only one NFT will be issued per operator at any one time, multiple NFTs will be issued over time. Node operators will receive one NFT pre-merge, and another post-merge, and then another every 12 months.
Progression
Each type can be combined w/ subsequent types, so node operators can progress over time. This gives a sense of 'character progression' as people stake longer, and grants bragging rights to those who have been staking the longest.
Seniority
It not only incentivizes operating a node, but doing so over a long period of time..
Call for Art Submissions
We are asking for help from the artist community to help us determine the NFT art style, and subsequently create the NFT art for the selected style.
From the submissions, the project management team will select their top five, and present those five style choices to the ETH Staker community for a vote. The winning style will be used to generate 10K+ unique combinations of NFTs, one for each address.
Here is a video showing one way that could be done.
Cash Rewards
The budget for this project is $5700 and that entire amount will be paid to artists as follows:
- The final winner will receive $3500
- The second through fifth place artists will receive $550 each
The final winner will work with the project team to generate the required number of unique NFTs. Rights for artwork associated with the winning submission will be transferred to respective NFT holders. All other artists will retain all rights to their art and will be free to use / resell their submitted art as they see fit.
What does a winning submission look like?
A winning submission will have three pieces:
The proposed NFT art style.
Image(s) to illustrate the style. At least one image is required, but several could help show the range of the suggested style.
Your creative vision for how this style could evolve in terms of future progressions. No additional art is required for this item, we just want to make sure that we are properly setting up a foundation to build upon.
Can you give me an example?
Let’s say the proposed NFT style is ‘GangsterCats’
Some image examples might be:
A progression vision might be that the gangster cats will evolve over time into gangster lynxes, and then gangster cheetahs, and then gangster lions. Or another vision might be that the gangster cats will evolve into organized crime cats, and then small-town politician cats, and then bureau-cats.
Vote for your favorite Art Style
We have selected the top five finalists for the NFT Art Style, and need the community’s help in selecting the winning style!
You can find all the finalists here
Voting is taking place on the Eth Staker discord server
The poll is pinned in the channel called 'ethstaker-incentives-nft'
You can join the server here:
The poll will be open until midnight (PST) on Dec 23rd, 2022
Congratulations, XoFee!!
The polls are closed and we have a winner!
Huge shoutout to all the artists who participated- so many amazing submissions!
Looking forward to working with Xofee to generate nearly 13,000 unique Network Watchers for stakers helping to secure the Ethereum network.
Artist: XoFee
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