Lido has officially introduced Identified Community Staker (ICS) applications on the Ethereum network. This new system establishes a verification process, providing individual stakers with preferential terms within the protocol’s Community Staking Module.

According to Lido’s announcement, the ICS program utilizes a point-based system evaluating applicants on experience, engagement, and their demonstrated “humanity.” Prospective ICS members must surpass minimum point thresholds in each category, achieving a total of at least 15 points to be considered eligible.

The ICS program’s main purpose is to prioritize independent operators within the CSM, especially after a significant influx of registrations following the permissionless opening earlier this year. Lido reports that approximately 450 operators joined after the January shift to permissionless access, which subsequently reduced the opportunity for smaller operators to stake validator keys.

ICS applicants who successfully complete the review process gain access to specialized parameters designed for CSM v2. These include a 6% reward allocation on the first 16 keys, a 1.5 ETH bond requirement for the initial key, prioritized deposits for the first 10 keys, and more lenient performance expectations compared to the standard permissionless track.

Lido states that the application hinges on an identification framework leveraging data from the broader ecosystem. Verification of experience can be substantiated via inclusion in EthStaker or StakeCat’s solo-staker lists, participation in Obol’s Techne and SSV’s operator initiatives, and historical involvement within the CSM. Engagement is assessed based on HighSignal metrics and documented contributions through GitPOAP.

Ensuring Human Participation in Ethereum Staking

Proof of “humanity” involves verification utilizing Human Passport and Circles. This is converted into ICS points through a dedicated interface within Passport, producing a Unique Humanity score compatible with the ICS model. Lido reports Human Passport boasts over 2.2 million users, and the ICS weighting scheme amplifies certain credentials, enhancing confidence in the identification of stakers.

The CSM remains permissionless, and participation without ICS validation remains accessible. The ICS program serves as an additional operator tier within v2, offering specific parameters intended to direct early capacity towards verified individuals while maintaining oversight regarding validator performance and established strike policies.

Applications are currently being accepted. The initial evaluation phase concludes on October 1st, with approved addresses anticipated to be nominated for inclusion on the on-chain ICS list through Easy Track governance around October 8th. Following this, operators can claim the ICS node classification within the CSM interface.

The launch’s timing is aligned with CSM v2, which Lido indicates will increase the community staking share limit to 5%, thus expanding the portion of stake managed through the module after the upgrade’s implementation. Lido describes this adjustment as a method to provide more room for community stakers, while ensuring the system remains accessible to all operators through the permissionless option.

Lido re-emphasized the scoring categories and the goals of ICS on their social media channels, noting that Entry Gates in v2 will enable parameters to be assigned per operator group, with ICS acting as the initial such gate.

The application process is managed through the CSM widget, offering the option to connect the primary operating address, add up to five secondary addresses for supplementary verification, and input contact details. Upon approval, the ICS status will display an estimated date for the subsequent list update.

In case of non-approval, applicants are able to revise and resubmit their application for future review rounds. Simultaneously, all validators can continue operations on the permissionless track without interruption.

Advantages of ICS for Community Stakers

Lido promotes the ICS track as a mechanism to direct early deposits and allocate fee shares to individuals capable of demonstrating independent operation. This is achieved using external verifications to mitigate sybil risks, while safeguarding privacy through credential-based evaluations rather than direct identity disclosure.

The initial list update and the v2 transition will determine how swiftly ICS operators witness deposits flowing through the priority queue. Following this, fee share and bond adjustments will be implemented for those initial keys, as pre-configured.

Lido’s instructions underscore the importance of achieving approvals during round one and preparing for the October 8th Easy Track action. This sets the stage for applicants to operate validators under ICS parameters once the upgrade is live.

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