Concordium Protocol 8 Release — More Stability, Efficiency & Fairness
The next step in Concordium’s evolution is here. Following a successful testnet launch, the release of Protocol 8 on mainnet.
Last October, Protocol 7 introduced several key updates to enhance network performance and security, including more cost-efficient smart contract execution, a revised staker cool-down mechanism, the discontinuation of shielded transfers, and an improved block hashing process. All of these changes laid the groundwork for further enhancements, allowing Concordium to continue evolving with greater efficiency.
With the release of Protocol 8, critical improvements to validator activity and network efficiency have been made to ensure a more stable, efficient, and fair network for all participants — an outcome that resulted from the Governance Committee’s participation in the proposal.
Why Protocol 8 Matters
Concordium operates on a proof-of-stake (PoS) consensus mechanism, where validators play a crucial role in securing the network and finalizing transactions. Unlike proof-of-work systems that rely on computational power, Concordium’s PoS model selects validators based on the amount of stake they hold. This ensures an energy-efficient and decentralized blockchain while incentivizing active participation in consensus.
Inactive validators disrupt this system. When validators fail to participate in block production, confirmation times increase, leading to slower transaction finalization and reduced throughput. To maintain optimal network performance, Protocol 8 introduces automatic validator suspension, ensuring that inactive validators cannot win the lottery to make the next block.
To be clear, this is not a penalty — suspended validators do not lose their stake and can rejoin the consensus at any time. However, removing inactive validators from the consensus committee ensures a smoother and more efficient network. Currently, block times on the mainnet average 2.2 seconds. With this change, block times are expected to be even faster, improving transaction speed and overall network reliability for all users. And if a large validator drops out, it will only affect the network for a short period of time until the dormant validator is suspended.
How Validator Suspension Works
The consensus protocol continuously tracks validator activity. If a validator fails to participate in block production for more than 10 consecutive rounds, it is flagged for suspension at the next payday. If it remains inactive up until an hour before the following payday (23h later), it is automatically suspended. Once suspended, the validator will be removed from the consensus committee, but retains its delegators and stake. Validators can resume participation by sending a transaction, which takes effect on the next payday.
The time it takes for a validator to be suspended depends on its stake. For example:
- A validator with ~47,000,000 CCD staked (~0.53% of total stake) might produce 11 blocks per hour, and could be flagged for suspension after just 1 hour of inactivity.
- A validator with ~500,000 CCD staked (~0.004% of total stake) might produce 2 blocks per day and could be flagged for suspension after approximately 6 days of inactivity.
These numbers are estimates and can vary based on network conditions. So, to all node providers — the best way to avoid suspension is to keep validator nodes online and up-to-date.
Consequences of Being Suspended
Suspended validators no longer participate in consensus and do not earn rewards for themselves or their delegators. However, they do not automatically lose their delegators. Delegators can choose to remain or move their stake to another validator. A suspended validator’s stake remains intact, and they can resume validation at any time by sending a transaction via their wallet. Once this transaction is submitted, the validator will rejoin the consensus committee at the next committee selection, which occurs an hour before payday. To avoid repeated suspension, validators should ensure their nodes are online and up-to-date.
Delegators do not earn rewards when staking with a suspended validator until the validator resumes participation. Delegators can choose to wait for the validator to return or update their delegation to another validator. No stake is lost as a result of delegation to a suspended validator, and funds remain locked in the wallet as they are still staked.
A Milestone in the Concordium Tech Roadmap
Protocol 8 is yet another key milestone in Concordium’s ongoing development. By introducing automated validator suspension, this update ensures a more stable, efficient, and fair network for all participants.
As Concordium continues its push towards greater resilience and performance, Protocol 8 represents a crucial step in refining the blockchain’s governance and consensus processes. Validators and delegators should prepare for upcoming advancements, as each protocol update builds upon the last to create a more resilient network.
For detailed documentation on validator suspension, see:
Stay tuned for more updates as we continue to enhance Concordium’s blockchain capabilities. Follow us on: X and Discord
Watch the recent global Townhall to learn more about upcoming advancements in the Concordium ecosystem.