# AIP 5: Increase Ideal Staking Ratio to 75% **URL:** \ **Category:** Avail Improvement Proposal (AIP)\ **Created:** [January 14, 2025, 1:39pm UTC](https://forum.availproject.org/t/aip-5-increase-ideal-staking-ratio-to-75/1632 "2025-01-14T13:39:39Z")\ **Posts on this page:** 8\ **Page:** 1
**Author:** ![SocialForging](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.availproject.org/socialforging/32/849_2.png) [@SocialForging](https://forum.availproject.org/u/SocialForging)\ **Post date:** [January 14, 2025, 1:39pm UTC](https://forum.availproject.org/t/aip-5-increase-ideal-staking-ratio-to-75/1632/1 "2025-01-14T13:39:39Z")
**Authors** : Jackson Lewis, Tanisha Katara **Description** : This AIP proposes increasing the ideal staking ratio from 50% to 75% to align with network scaling, ensure sustainable APY, and strengthen network security. ### **Technical Summary** This AIP proposes raising the **ideal\_stake** parameter in Avail’s inflation model from 50% to 75%. The **ideal\_stake** defines the staking rate at which the network achieves an optimal balance between security and liquidity. Increasing this parameter ensures sustainable APY for nominators and validators, reflects the network’s maturity, and supports the scaling of staking participation through the Foundation Delegation Program. This adjustment has been tested on Turing and will be implemented via a runtime upgrade. ### **Motivation** At genesis, the **ideal\_stake** parameter was set at 50% to encourage early staking participation by offering high APY to nominators and validators. Over time, the network has scaled significantly, with an increasing amount of tokens staked due to organic growth and the Foundation Delegation Program. If the ideal staking ratio remains at 50%, the inflation model will lead to abrupt APY drops as staking rates exceed the ideal threshold, potentially discouraging participation. Increasing the **ideal\_stake** to 75% aligns with the network’s growth and ensures the long-term sustainability of staking incentives. ### **Technical Specification** The **ideal\_stake** parameter directly influences Avail’s inflation dynamics and staking incentives: 1. **Staking Rate (x)**: 2. **Inflation Dynamics** : 3. **Proposed Update** : 4. **Testing** : ### **Rationale and Reasoning** The decision to increase the ideal staking ratio (χ\_ideal) to 75% is driven by the following considerations: 1. **Network Scaling and Ecosystem Maturity** : 2. **Sustainable APY** : ### **Backwards Compatibility** This proposal does not introduce any backwards incompatibilities. The change to the **ideal\_stake** parameter is applied via a runtime upgrade and does not affect the consensus mechanism or validator operations. The network will continue to function as intended, with no disruptions for participants. ### **Security Considerations or Risks** The runtime upgrade process ensures the change is applied uniformly across the network, introducing no security vulnerabilities. Testing on Turing has validated the safety and effectiveness of this adjustment. The increase in staking participation will further enhance network security. ### **Copyright Waiver** Copyright and related rights waived via CC0. ---
**Author:** ![Phunky](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.availproject.org/phunky/32/927_2.png) [@Phunky](https://forum.availproject.org/u/Phunky)\ **Post date:** [January 14, 2025, 8:21pm UTC](https://forum.availproject.org/t/aip-5-increase-ideal-staking-ratio-to-75/1632/2 "2025-01-14T20:21:33Z")
Looks good to me, gang! We’ve had similar issues over the years with the Polkadot network, and over time these sorts of adjustments are necessary to foster the best possible solution for all ecosystem participants, whether individual stakers such as myself or validator operators such as our company, GlobalStake. Kudos to the team for their foresight in this matter. If you’d like me / us to create any content to share on social media to make others aware of this necessary and timely change, please do not hesitate to ask! Best, Ryan / Phunky ---
**Author:** ![SocialForging](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.availproject.org/socialforging/32/849_2.png) [@SocialForging](https://forum.availproject.org/u/SocialForging)\ **Post date:** [January 14, 2025, 8:37pm UTC](https://forum.availproject.org/t/aip-5-increase-ideal-staking-ratio-to-75/1632/3 "2025-01-14T20:37:06Z")
Thanks for the feedback Phunky! Always welcome to put something on socials if you’d like, we’d love to amplify! ---
**Author:** ![Aleksandr\_Tishin](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.availproject.org/aleksandr_tishin/32/928_2.png) [@Aleksandr\_Tishin](https://forum.availproject.org/u/Aleksandr_Tishin)\ **Post date:** [January 15, 2025, 12:56pm UTC](https://forum.availproject.org/t/aip-5-increase-ideal-staking-ratio-to-75/1632/4 "2025-01-15T12:56:27Z")
Hey, I have several questions: 1. What are the specific reasons to believe that the staking ratio will increase from 15% to over 50%, as reported by Subscan? What key factors or mechanisms are expected to drive this 3x growth in staking participation? 2. A similar proposal was implemented on Polkadot last year, but in that case, the staking ratio was several pp close to the ideal ratio. However, after it led to a shift toward a fixed inflation model, entirely abandoning the complex non-linear dependency between staking ratio, APR, and treasury inflows. Has the Avail team explored adopting a similar fixed inflation approach? What are the pros and cons of such a model in Avail’s context? 3. Why is Avail’s proposal still being approached in a centralized manner rather than leveraging on-chain governance (giving substrate framework and governance palette) and trackable voting, which are now standard practices in many protocols? What are the challenges preventing the implementation of decentralized governance mechanisms? ---
**Author:** ![SocialForging](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.availproject.org/socialforging/32/849_2.png) [@SocialForging](https://forum.availproject.org/u/SocialForging)\ **Post date:** [January 16, 2025, 6:48pm UTC](https://forum.availproject.org/t/aip-5-increase-ideal-staking-ratio-to-75/1632/5 "2025-01-16T18:48:59Z")
Thanks for your comments Aleks! 1. We have had many applications to the Foundation Nomination Program, we are now bumping additions to the nomination program at 10 per time (roughly ten per week) so there will be sufficient stake entering network. 2. Avail has fixed inflation of 5%. [AVAIL - Avail Developer Docs](https://docs.availproject.org/user-guides/staking-governance/overview) I am not familair with these changes in polkadot, would need references to comment further. 3. We have phased decentralised governance clearly [outlined here](https://docs.availproject.org/user-guides/staking-governance/governance-on-avail/overview). Progressive decentralization is the norm, as we are only a matter of months out from mainnet launch, its a gradual process. The community / network is not yet at a stage where we can actively decentralize all operations. We are of course committed to decentralization and will continue to work towards it as the network matures. ---
**Author:** ![Brightly\_Stake](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.availproject.org/brightly_stake/32/458_2.png) [@Brightly\_Stake](https://forum.availproject.org/u/Brightly_Stake)\ **Post date:** [January 17, 2025, 4:57pm UTC](https://forum.availproject.org/t/aip-5-increase-ideal-staking-ratio-to-75/1632/6 "2025-01-17T16:57:51Z")
in support of this proposal, with more validators joining active set this can be crucial for avail’s success. ---
**Author:** ![IgorK](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.availproject.org/igork/32/909_2.png) [@IgorK](https://forum.availproject.org/u/IgorK)\ **Post date:** [January 22, 2025, 9:28am UTC](https://forum.availproject.org/t/aip-5-increase-ideal-staking-ratio-to-75/1632/7 "2025-01-22T09:28:17Z")
Sounds like a solid move to raise the ideal\_stake to 75%. It helps boost network security, keeps APY stable, and matches the ecosystem’s growth. The runtime upgrade approach also seems straightforward and safe. ---
**Author:** ![SocialForging](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.availproject.org/socialforging/32/849_2.png) [@SocialForging](https://forum.availproject.org/u/SocialForging)\ **Post date:** [January 22, 2025, 11:19am UTC](https://forum.availproject.org/t/aip-5-increase-ideal-staking-ratio-to-75/1632/8 "2025-01-22T11:19:14Z")
This change has been implemented > [@Transparency Report 12: Increased ideal\_stake to 75%](https://forum.availproject.org/t/transparency-report-12-increased-ideal-stake-to-75/1640): > > Report Author: Toufeeq from the Avail Technical Committee [5CoVaWrZnaV3BSeUJCA8Ca3SPMJDtjT1zPvZkzovkxJU7dkr] Change Executed: Changes will be applied at block #877,679 Technical Committee Consensus: 5/7 signers [https://avail.subscan.io/tech/25?tab=votes](https://avail.subscan.io/tech/25?tab=votes) Introduction: This report aims to provide transparency to the Avail community regarding both upcoming and executed network changes. The Avail Technical Committee (TC) has approved a runtime upgrade on Avail Mainnet to increase the ideal\_stake …