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Update EIP-7251: remove custom ceilings prose
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ralexstokes authored Aug 21, 2024
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Expand Up @@ -533,9 +533,8 @@ The defining features of this EIP are:

1. ***Increasing the `MAX_EFFECTIVE_BALANCE`, while creating a `MIN_ACTIVATION_BALANCE`.*** The core feature of allowing variable size validators.
2. ***Allowing for multiple validator indices to be combined through the protocol.*** A mechanism by which large node operators can combine validators without cycling through the exit and activation queues.
3. ***Permitting validators to set custom ceilings for their validator to indicate where the partial withdrawal sweep activates.*** Allows more flexibility in defining the "ceiling" of a validator's effective balance.
4. ***Adding execution layer partial withdrawals (part of [EIP-7002](./eip-7002.md)).*** Allowing Execution Layer messages to trigger partial withdrawals in addition to full exits (e.g., a `100 ETH` validator can remove up to `68 ETH` without exiting the validator).
5. ***Removing the initial slashing penalty (still in discussion).*** This reduces the risk of consolidation for large validators.
3. ***Adding execution layer partial withdrawals (part of [EIP-7002](./eip-7002.md)).*** Allowing Execution Layer messages to trigger partial withdrawals in addition to full exits (e.g., a `100 ETH` validator can remove up to `68 ETH` without exiting the validator).
4. ***Removing the initial slashing penalty (still in discussion).*** This reduces the risk of consolidation for large validators.

The [Rationale](#rationale) section contains an explanation for each of these proposed core features. A sketch of the resulting changes to the consensus layer is included below.

Expand Down Expand Up @@ -569,11 +568,9 @@ This EIP aims to reduce the total number of validators without changing anything
* *While increasing the `MAX_EFFECTIVE_BALANCE` to allow larger-stake validators, it is important to keep the lower bound of `32 ETH` (by introducing a new constant – `MIN_ACTIVATION_BALANCE`) to encourage solo-staking.*
2. ***Allowing for multiple validator indices to be combined through the protocol.***
* *For large staking pools that already control thousands of validators, exiting and re-entering would be extremely slow and costly. The adoption of the EIP will be much higher by allowing in-protocol consolidation.*
3. ***Permitting validators to set custom ceilings for their validator to indicate where the partial withdrawal sweep activates.***
* *To get access to rewards, validators might want the flexibility to set custom ceilings for their effective balance. This gives them more optionality and is a clean way to continue supporting the partial-withdrawal sweep (a gasless way to extract rewards).*
4. ***Adding execution layer partial withdrawals (part of [EIP-7002](./eip-7002.md)).***
3. ***Adding execution layer partial withdrawals (part of [EIP-7002](./eip-7002.md)).***
* *For validators that choose to raise their effective balance ceiling, allowing for custom partial withdrawals triggered from the execution layer increases the flexibility of the staking configurations. Validators can choose when and how much they withdraw but will have to pay gas for the EL transaction.*
5. ***Removing the initial slashing penalty (still in discussion).***
4. ***Removing the initial slashing penalty (still in discussion).***
* *To encourage consolidation, we could modify the slashing penalties. The biggest hit comes from the initial penalty of `1/32` of the validator's effective balance. Since this scales linearly on the effective balance, the higher-stake validators directly incur higher risk. By changing the scaling properties, we could make consolidation more attractive.*

## Backwards Compatibility
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1 comment on commit 22e4a0b

@bdoconnell44
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Hey Alex.

Had a quick question for you. Where is 7251 currently at with slashing? I had watched the cat herders proposal to transition correlation penalty to quadratic and decrease initial slashing penalty to 1/4098. Is that the direction we are going or a different route?

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