 My name is JK. I'm the operations manager at stake fish Thank you Steakfish is a validator for different pre-OS blockchains and And node operators for projects that use staking mechanisms. I'll get into that a bit later But you know, we're all excited for a dream 2.0. POS is going to be enabled But you know, there have been plenty of other POS per calls That have been in operations for a year or even or slightly less than that and there are already good data points to take from there and Having been in this space for about a year now and a bit over a year There's plenty of lessons that we've learned throughout the way throughout our our operations And we wanted to share a few of those with you today In the hopes that once a term 2.0 launches, we don't have similar problems. We've seen on other POS protocols So just a very short introduction about steak fish steak fish was founded by Wang Chun who co-founded F2Pool Which is one of the of course bit what largest Bitcoin and Ethereum mining POS and You know, he wanted to contribute something similar in the proof of stake space and of course naturally They meant creating validators and staking POS. And so so far we have validators or nodes on Various projects. We have EOS. We are a validator on BIOS, Cosmos, Tezos, Lume Network, Iris Network, BOS a node operator for Chainlink, Algorand and a storage node provider for storage as well And so right now roughly we're facilitating around 30 million dollars in Stakeable assets So first of all just a quick reality check. I know that everyone will be able to run an Ethereum 2.0 Validator node as long as you have 32 ETH, but the reality is not everyone will be able to You know either you don't have the equipment we can't assume that everyone will have a PC at their home or even a laptop and We can't assume everyone will have the technological capabilities of you know Parsing through GitHub or even using command lines to actually run a validator node And so that's where I believe validators come in. We're trying to help Lower the barriers to staking even further by making staking easy for retail And so there are two main service offerings that validators offer so far One is validator as a service This is where we run a validator and people delegate their coins to us Delegate is where people don't give up their ownership, but rather they provide the power and ends of the coins to a validator so it's a pretty special type of transaction and So therefore we're able to run a validator, but we don't have custody over the coins that are stake with us Also, there's a fair amount of validators that run a node as a service This is where you imagine like AWS right you're trying to spin up a note validator for any customer that wants to stake and you know there are I think in the US are two big players in this space there's block Damon and bison trails and You know largely node as a service. You could really imagine it to look similar to just an AWS But of course With e2.0 There's not there's no such thing as delegation. I mean you're not going to be able to delegate your coins So unless you have custody of the funds Validators of service is probably not going to be a viable business for for validators So I won't go too much into detail because of time constraints over what validators are considering on what are their Businesses that could be provided But you know rest assured that node as a service will probably be one of the more strong business lines that validators will pursue for e2.0 But of course personally and there's there's other avenues that are exciting such as I'm giving a shout out to rocket pull Of course, which I'm really looking forward to for e2.0 But you know so, you know The validators are losing probably like one of their main business lines and node as a service seems to be one of the more viable options But like why are validators and here at all in this space right now? There's around about five billion dollars of Stakeable assets in the market so it's it's a fair amount and I estimated roughly that in a year or so there is gonna be this Number is gonna balloon to 30 billion dollars And of course it during 2.0 is gonna be the majority of that with eight billion dollars And so not to say that this is the exact like revenue opportunity But this is the the size of the market and so therefore there's a reason why the validators are here They want to either facilitate something here. They want to do something here They want to help facilitate staking of eight billion dollars in the when e2.0 launches And so that's sort of a short intro on like Who are validators are how they're trying to they're approaching e2.0? But let's go into like the reason why I'm here today to talk about some of the lessons the key lessons we've learned By validating on other POS protocols and I've really summarized it down to five there are far many But these are the five key ones that I believe This the Ethereum Community needs to focus on So I don't know if any of you were at the first speaker session for today life Adam from live Here actually gave a pretty good presentation on the one of the key bottlenecks of staking right now, and it's It's the user interface Right now staking is insanely hard even on you know even for like a network like Tezos for example It's very difficult to understand like where I need to go if I have Tezzi's in my ledger Is there an interface I could use to stake it's very hard to find that I recommend you trying to Google it You'll you'll come up with very different You know explanations on where you could go. It's not really clear on Cosmos similarly so when Cosmos launched there was only one mobile wallet available and what one web wallet available and Obviously people were confused whether that was the only ones ones they could use But you know, but the most safe one was actually using the command line And so people that some of the validators started telling people to use the command line and obviously As I mentioned when I first began this talk, we can't expect everyone to understand how to use the command line So therefore there was a lot of confusion So it's important that some form of staking interfaces or multiple staking interfaces are available when the e2.0 launches If not, it's gonna cause a lot of confusion and you're just basically limiting the Opportunity to stake the very limited set of people of community members Now another important part is the making staking trackable and You know, of course you want it for bookkeeping you want to see how much income you have how much how much you have Stake but more importantly there are tax reasons for this There's a lot of regulatory and clarity on how staking should be considered tax-wise But eventually, you know, people will need to pay their taxes on Most likely on staking rewards and the only way they'll be able to do that is if they're able to track how much Rewards they've been receiving how much asset savings staking so far There aren't that many of such dashboards many of them are launching right now But this is another another another key tool that needs to be provided when e2.0 becomes available So yeah, so number one key theme here is try to make You know interfaces for users for retail such that they're able to Steak easily and also track how how their staked assets easily number two is so slashing has occurred on Cosmos especially recently not recently I guess in June July someone one of the valedirs had Their valedir was down for a while and then they try to bring it back up and accidentally their backup note and their main valedir note Came back up at the same time causing a double double signing so When as a valedir when I talk with retail or other funds the number one question They always ask us ask us is how are you gonna insure me that you know How are you gonna insure me in terms of slashing risk? It's all in their minds But with this with this double signing event. It's becoming much more This risk is becoming bigger in their minds and it's become a key thing That they constantly ask for insurance or some way that you know some social con some option contract We could sign such that they're able to then somehow recoups the slashed amount and so Therefore, this is definitely another pain point and there needs to be some method to let You know people Hedge their slashing risk and most likely I believe this will come in the form of DeFi in terms of like insurance markets most likely and so these sort of These sort of DeFi products needs to be thought of in advance and created Not not after ease 2.0 has launched really Also, another thing is another way of actually reducing slashing risk is by diversifying who you stake to for example If I'm trying to stake on Cosmos rather invalid any rather is staking with one valedier It's better to spread out your risk and valid just similar to how you would diversify your portfolio This concept is sort of not really being considered too much We see way too many just all in staking going on in various protocols so But the probably the main reason why that's occurring is because it's very inconvenient to diversify your stake When you're staking so providing an automated Option or service such that people could automatically diversify the validators that they're using is also a pretty important Method of hedging their slashing risk and probably a very important product that will be needed You know close to when these two point launches Another key thing that we've seen constantly come up in other POS protocols is a centralization debate It's sort of so on the left here. You could see sort of the graph of the stake power basically distribution and and This is this is in cosmos by the way So for Ethereum, there's no delegation. So you won't see this this stark of a Distribution graph, but you know and each two point on how this is relevant is in two ways So exchanges definitely will have so much in their custody. So they're gonna be big players. So there will be some some debate over their role in Staking economy in the east 2.0, but second of all remember I said that validators will probably enter into each 2.0 as node as a service Well, imagine if any of these node as a service providers Become big like they control like 50 60% of the market Imagine that they find a very critical bug in their infrastructure What that means is then every single user staking using their node as a service are probably likely going to be compromised So it's another point of failure In that case. So that's also so that's somewhat like not going to be as Forefront as you know seeing an exchange gain like five six percent of a network's power But this is also going to be a very crucial Centralization a failure point that will be neat. We'll need to be vigilant about So I actually took this out I've put it as a separate point because this is very crucial So exchanges are finally entering staking, you know I'm quite sure many of you have seen how Binance announced that they're providing staking operations and the reason why staking is so Exchanges are so entering to staking is crucial is because they're able to provide instant liquidity And they actually bypass any unbonding periods and you know Imagine that you know like if you're trying to stake on a east 2.0 And you don't need to lock up your ease You just keep it on a on a exchange wallet and you instantly get each drop to your wallet like how convenient is that and So therefore This is this is a really problematic Especially for independent validators like us because we're not really able to compete with these exchanges that are able to bypass These liquidity issues. Oh Yeah, and there's like your street points on how exchanges are entering I'll Please come up to me if you want to understand more about how exchanges are entering right now so as I mentioned the the important part for the important part about like of tackling this is that Independent validators like us need to be able to compete with these guys And the only way we could do that is if there's a way where we could offer people who delegate to us who stake with us Have similar liquidity, you know liquidity when they're when they're staking and so therefore I see Staking derivatives again defy playing a key role here There are a few players right now trying to tackle this and so once staking derivatives are alive That will then help us validators actually compete with exchanges and that's what that's key here I think that that's how I don't expect validators to be treated more favorably Compared to exchanges, but at the very least we could level the playing field By providing staking derivatives and so This is just one a way of sort of tackling the exchange Centralization issue of regarding staking, but I welcome anyone to think of any alternatives to try to See where we could compete better with exchanges when it comes to staking So finally This is a topic that no one likes to talk about but that we seriously need to There needs to be a working group around this it's regulation and taxation Proof of work mining has been around so there has been some framework Constructed around how mining and mining rewards should be considered but You know, we can't assume that proof of stake staking and staking rewards will be considered the same way Like as an example like let's say a proof of stake staking rewards will eventually be taxed Will it be taxed once I get the staking rewards in my wallet? Or will it be taxed once I liquidated into like another coin? Like these are questions that are still up in the air and no one knows the answers to So there is a PLS alliance proof of stake alliance that has been created with a few key players in the staking staking world I also do encourage the during community to think about how we could engage policy makers and regulators around how staking should be considered because if this stack is not figured out like You know valid air stakers everyone alike is going to be in a heap of regulatory issues so I think it's important that we we We actually take We take a proactive approach I try to talk with policy makers on what they're thinking and how we could make it comfortable such that they make Reasoned and logical decisions on how staking should be taxed how staking should be regulated So, yeah, so those are sort of the five key lessons I wanted to share with you guys and hopefully that once these 2.0 launches we have some answers to we might not have answers to All but hopefully most of them. I love talking about staking. I'm happy to share any knowledge insight on What we've how we've operated so far So please feel free to reach out to me on Twitter on By email or or yeah, I think that's it. I guess I'll take questions if there are any