Thanks for the analysis @nethermind
Directionally we agree with the proposed changes and think they will be beneficial to the dYdX Chain in the long term
We are effectively shifting protocol revenue towards more productive and positive actions. Building up the MegaVault should be highly productive for the protocol, however, I think its profitability should be closely monitored. There is no point in directing 50% of protocol revenue to MegaVault if it’s largely unprofitable
Lastly, we sympathise with a lot of the Validators that are affected by the reduction in the Validator set and think it would’ve been better to frame this reduction with the purpose of increasing performance as no one is forcing a Validator to join the network and it’s their decision to operate at a loss. If we are truly wanting to improve performance (which i think should be the number 1 priority) then the 50% cut likely makes sense, however, if it’s about validator profitability it could then make sense to initially reduce it down to 45 and assess if profitability improves