TL;DR
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Full Story
Starting January 1, 2025, we began phased changes to the Validator Support Program, shifting aims to enhance network liquidity, revenue and increase ICX burn. Recently we began the last of our scheduled votes, to reduce the required bond percentage to 1% - a change that will also reduce the ICON Foundation’s validator support delegation to 1M ICX. Beginning on April 1, 2025, the ICON Foundation will completely discontinue delegation to nodes under the Validator Support Program, officially concluding the phased wind-down initiated earlier this year.
Transitioning to a Liquidity-Focused Model
The decision to scale back and ultimately retire the Validator Support Program was made to free up ICON Foundation funding and to align incentives with the network’s long-term economic strategy - prioritizing liquidity incentives. This shift ensures that resources are directed towards mechanisms that drive sustainable network growth and efficiency.
The ICX/sICX liquidity pool on Balanced, introduced as part of this transition, has been well received. The rewards offered through this pool provide an alternative, and compelling, yield source for validators, bonders, and stakers, reinforcing ICON’s economic sustainability goals.
Key Changes Effective April 1st
Complete discontinuation of ICON Foundation delegation to all nodes under the Validator Support Program.
Validators can consider the newly incentivised ICX/sICX liquidity pool on Balanced as an alternative yield producing venture - aligned with our network goals.
Next Steps for Validators & Network Participants
If you were a recipient of ICON Foundation delegation under the Validator Support Program, we encourage you to explore opportunities within the ICX/sICX liquidity pool on Balanced. This transition offers a more sustainable, long-term reward model that aligns with ICON’s economic enshrinement approach.
For any questions or further assistance, please reach out via our official Discord.
We appreciate the contributions of all validators who have supported the network through this period of evolution. Your role in securing and advancing ICON remains crucial as we continue optimizing our economic model for long-term success.
Thank you for being part of ICON’s journey!