Polkadot is implementing a significant change to its staking infrastructure through Referendum 1890, which requires validators to self-stake at least 10,000 DOT of their own money. According to latest reports from BeInCrypto, the referendum currently shows 100% Aye support with enactment targeted for May 31. This mandatory prerequisite serves as the foundation for Polkadot's next phase of staking redesign, with non-compliant validators facing significant risk of being chilled from the network. The upgrade represents a fundamental shift in how the network distributes risk across its staking ecosystem, directly increasing economic risk for validators while protecting nominators. As reported by Polkadot OpenGov, this reform is a mandatory prerequisite for the next phase of staking upgrades, which include immunity from slashing for nominators and quick unbonding capabilities.
Polkadot operates under a Nominated Proof-of-Stake (NPoS) system where validators operate computers for transaction processing and network security, while nominators lend their DOT to validators in exchange for rewards. As reported by BeInCrypto, the current system shares risk between validators and nominators, with validators operating the infrastructure and nominators providing capital. The upgrade introduces two key improvements: nominators becoming unslashable and fast unbonding capabilities. In the new system, any validator that misbehaves or goes offline would first lose their own 10,000+ DOT bond, while nominators' principal would be protected and they could still receive rewards. The unbonding period has been reduced from 28 days to 24 to 48 hours, eliminating the previous month-long waiting period for users to access their staked DOT. The logic behind this change allows validators to absorb slashing risks directly through significant self-staking exposure, while nominators can continue earning staking rewards without exposing their principal to slashing.
By mid-June, the network will introduce rewards for validators in unlocked DOT tied to their self-stake, with these DOT rewards subject to a one-year vesting period. According to BeInCrypto, after the issuance buffer starts funding stablecoin payouts, these DOT rewards will be subject to a one-year vesting period. Stablecoins will handle operational expenses going forward, resulting in the commission model being phased out as it no longer serves a purpose. The reasoning behind this change is simple: validators directly shoulder slashing risk through substantial self-bond exposure, while nominators can continue earning staking rewards without risking their principal to slashing. If passed, Polkadot staking will eliminate two major barriers to participation, thereby reducing the risk for nominators and shortening exit times.
These developments come as DOT traded at $1.25 at press time, following the network's recovery from a Hyperbridge exploit that significantly impacted its market capitalization. As reported by BeInCrypto, Polkadot ranks seventh in L1 staking market capitalization with $1.1 billion, trailing Ethereum's $82.1 billion leadership position. The upgrade is expected to remove what the team describes as Polkadot's two largest barriers to participation: lower risk and faster exits. Validators must actually post the required 10,000 DOT before May 31 to avoid being chilled from the network, marking one of the most significant rewires of Polkadot's staking economics with the heavy lifting still ahead. The faster exit capabilities could draw back holders who previously avoided staking due to the extended lock-up periods.
