Raise Validator Performance Standards

Introduction

Validator performance is the foundation of network security. Currently, Terra Classic enforces very lenient requirements for both block signing and oracle voting. Validatorscan miss up to 95% of blocks or oracle votes within a window and still avoid penalties. This undermines chain security and creates unfair conditions, as poorly performing validators face no consequences.

Other Cosmos chains, such as Osmosis, have established stricter standards (a minimum of 80% signed blocks) to ensure validators fulfil their responsibilities.

Current Situation

Block signing parameters

  • min_signed_per_window: 5%
  • signed_blocks_window: 10,000 (~16.7 hours)
  • downtime_jail_duration: 600s (10 minutes)

:right_arrow:This means: a validator can sign as few as 500 blocks out of 10,000 (~16.7 hours) and remain active.

Oracle voting parameters

  • min_valid_per_window: 5%
  • slash_window: 432,000 blocks (~30 days)
  • vote_period: 5 blocks

:right_arrow:This means: a validator can submit as little as 5% of oracle votes over a 30-day window and still avoid penalties.

Issues Identified

- Security risk: The current low thresholds allow validators with unreliable infrastructure or weak commitment to remain in the active set.

- Unfair rewards: Validators maintaining robust uptime and infrastructure share the same benefits as those with minimal participation, particularly in oracle voting.

- Oracle imbalance: The 30-day slash window is excessively long, enabling validators to remain idle for weeks while still avoiding penalties.

Proposal

1. Increase block signing requirement

  • Raise min_signed_per_window from 5% → 85%
  • Extend the signed_blocks_window from 10,000 → 100,800 blocks (~7 days)

:right_arrow: This means: a validator who misses ~24 hours of blocks within a 7-day window will be jailed.

2. Tighten Oracle voting accountability

  • Reduce slash_window from 432,000 → 100,800 blocks (~7 days)
  • Raise min_valid_per_window from 5% → 75% within the shorter window.

:right_arrow:This means: a validator who fails to provide oracle votes for ~24 hours within a 7-day window will be slashed when the 7-day window closes…

3. Increase downtime penalty

  • Raise downtime_jail_duration from 600s → 1800s (30 minutes)

Expected Impact

  • Strengthens the reliability of both block production and oracle participation.
  • Brings Terra Classic closer to the best practices of other Cosmos chains.
  • Poor-performing validators will no longer be subsidised by those investing in robust infrastructure.

**Footnote (informational only)**This section is for clarification only and is not part of the formal proposal.

Block signing: Checked continuously, on every block, within the sliding window. If a validator falls below the threshold (e.g. misses ~24h of blocks in a 7-day window), they are immediately slashed and jailed.

- Oracle voting: Misses are tracked during each vote period (~30s), but penalties are applied only at the **end of the slash window.**Under the new parameters, validators falling below 75% in a 7-day window will be slashed and jailed when the window closes.

1 Like

I would lessen the oracle requirements from 85% to 80% or 75% - in times of higher volatility voting on oracle means you might still miss oracle votes - even if you voted properly and your infra is pixel perfect. That is due to the internals of how the oracle module deselects votes and consider them “out-of-band” under certain circumstances. Other than that it’s a yes from me, I guess :slight_smile:

2 Likes

Sure, can be changed to whatever is most suitable. I’ll listen to your advice and make the changes before the official prop goes live.

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Yes. Oracle at 85% is too strict.

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What is your suggestion Strath?

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75% like Frag said seems okay.

2 Likes

Just on the oracle? leave the blocks at 85%?

That should be totally okay on a 7 day window. 15% of 7 days is a whole day of downtime. Even more than it is now (~16 hours). But as it is in a 7 day window, it at the same time enforces more consistent uptime.

2 Likes

It’s good to see this proposal as improving validator performance is needed to keep a solid and robust network. I am a Yes if the requested changes by Strath and Frag are implemented :handshake:

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I like this idea very much!

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Changes have been made as requested

1 Like

Oracle targets changed to the preferred 75%

2 Likes