Skip to content
Submit a form
Submit issue
  • There are no suggestions because the search field is empty.

Marinade’s stake distribution order and allocation process

Stake Allocation:
  • Stake distribution is managed through a unified pipeline, combining MNDE-directed votes and SAM bids to allocate Marinade’s entire TVL.
Distribution Mechanics:
  • Priority-Based Distribution: Stake is allocated starting from the highest-ranked validator down the list.
  • Constraint Checks: For each validator, the following constraints are verified before allocating stake:
    • Validator TVL Constraint:
      • Validators who do not have MNDE-Enhanced Stake directed to them are limited to a default stake cap of 4% of Marinade’s TVL. However, validators with MNDE-directed stake can increase this cap, allowing them to receive additional stake from the auction. (This mechanism helps prevent sybil attacks by ensuring only validators with genuine support through MNDE can exceed the standard cap.)
    • ASO/Country Constraints:
      • Ensures that staking to a validator does not exceed Solana's 30% concentration for ASO and 30% for Country.
    • Bond Balance:
      • Verifies that the validator’s bond balance is sufficient to cover downtime (PSR) and at least one epoch's worth of effective yield, including the bid.
         
Stake Allocation Process:
  • Sequential Allocation: Stake is allocated to validators in order of their Max_Yield, subject to the above constraints.
  • Handling Ties:  
    • If two or more validators have the same Max_Yield, the remaining stake is split equally among them.
    • Constraint checks are performed in parallel to ensure fair distribution.
  • Completion: The process continues until all available stake is distributed or no further allocations are possible due to constraints.
  • Result: This process returns a list of validators sorted by Max_Yield, along with the amount of stake each validator is allocated.
Priority Adjustment:
  • Insufficient Allocation Scenario:  
    • If a validator's bid is too low or their bond has insufficient funds, they will receive less stake or no stake at all.
    • Resolution: Validators should keep their bond topped up to maintain the stake they already have. Those without stake yet should increase their bid to improve priority and secure stake allocation.