Announcing the first community-driven protocol changes: How StorSwift championed ARC0037 and 0038

As an open-source ecosystem, the Aleo Network aims to become fully community-driven. Two recently implemented protocol changes — ARC0037 and ARC0038  — are examples of the impact that open collaboration can provide. 

While many parties were involved in bringing these ARCs (Aleo Requests for Comment) to life, the Aleo Foundation recently recognized the StorSwift team with a retroactive grant for being the inspiration and first proponents. StorSwift’s contributions to Aleo also include the Aleo123 Explorer, Soter Wallet, Data123, and Proof Market.   

Alex Pruden, our Executive Director, recently discussed the impact that community has on the network. "Community is the bedrock that anchors Aleo and ensures its staying power over the long term,” he explained. “ARC0037 and ARC0038 stand as pivotal advancements, showcasing the power of community-driven innovation in shaping the future of our platform.”

The origin of ARC0037 and ARC0038

In November 2023, StorSwift, an Aleo grantee and one of the longest-standing participants in the Aleo ecosystem, put forth two Aleo Request for Comments (ARC): ARC0037 and ARC0038. ARC0037 proposed the separation of an Owner and Worker address for validators as a way to ensure security of the validators’ staked funds. ARC0038 proposed allowing validators to receive a commission on the rewards provided to delegated stakers on said validators, as a way to incentivize validators to support delegated staking while still allowing the delegators to earn fair rewards on their stake.

After some discussion between StorSwift, Aleo Systems, and Aleo community developers, ARC0037 ultimately adds a Withdrawal Address for stakers (validators and delegators), which ensures security for stakers’ funds even if the stakers’ hot keys are compromised. It has recently been implemented by Aleo Systems.

ARC0038 is being implemented by Demox Labs with some modifications, but heavily inspired by Storswift’s original proposal. The most notable difference between the original ARC0038 and Demox Labs’ implementation is that in Demox’s implementation, the commission is being enforced via a standard program rather than at the protocol level.

“Aleo's commitment to decentralization, privacy, and community-driven governance resonates deeply with us,” said Leng Bo, CTO at StorSwift. “Beyond technology, it's the collective effort shaping a more inclusive and secure digital frontier.”

Shaping the future of the Aleo Network

These two ARCs are the first changes to the Aleo Network that have been suggested by the community, and both of these are critical improvements to the validator experience on Aleo. The Foundation is grateful to the StorSwift team for authoring these ARCs to serve as the first steps toward open-sourcing the Aleo Network.

If you have an idea for a project built on Aleo, apply for a grant. You can also explore our existing ARCs and submit your own suggestions for protocol improvements.