What are Validators?
The Validators are required to have a high computing server, secure and stable network to run a full node. The Validators are required to be online 24/7, to produce new blocks and participate in the consensus by broadcasting votes and avoid any slashable behavior.
How to become a Validator?
To become the Validator, it requires to have a minimum of 5M KAI in the possession and 25K KAI for registration. Also, to be Proposer Validators, the candidates must register in the candidate list and be the top 30 Validators to get selected.
What is the incentive to run a Validator Node?
The Validator will:
- Earn a reward for every new block created and signed.
- Charge commission fee to the Delegator. The commission fee will help the Validator offset their operation cost of maintaining the server.
Example of reward and commission fee:
Validator Andy has 15M KAI and stakes all his KAI. His commission rate for delegation is 10 % to help him to maintain his operation. Delegator Bob has 5M KAI and delegates all his KAI to Validator Andy. Now Validator Andy has a total 20M KAI in staking.
For this example, let say the current APR is 20%, the total staking reward for Validator Andy is:
20M (Total staked KAI) * 20% (APR) = 4M (Total reward )
How reward will be distributed:
Based on the total contribution amount of staking, Validator Andy has ¾ and Delegator Bob has ¼ . Let calculate the reward:
Validator Andy: 4M * ¾ = 3M reward
Delegator Bob: 4M * ¼ = 1M reward.
Since Delegator Bob agrees to pay a 10% commission fee to Validator Andy. Let calculate the commission fee:
Commission pay to Validator Andy: 1M * 0.1 = 100K
What will Validator Andy and Delegator Bob will receive as the take home reward:
Delegator Bob: 1M - 100K (commission fee) = 900K
Validator Andy: 3M + 100K (commission fee) = 3.1M
What is the responsibility of a Validator?
The Validator has two main responsibilities:
- Ensure that the server/node is always online, protect and safeguard the private key without compromising.
- Actively participate in consensus processes such as voting and committing new blocks in the KardiaChain network.
Additional responsibility will be actively participating in the community, maintaining the system's state up-to-date. The Validator plays an important role in the KardiaChain network thus requiring to vote on every blocks’ proposal.
What are the different states of a Validator?
A Validator can be in these states:
- Validation set: Validator is in the active set and participates in the consensus process. Validators can earn rewards and can be slashing for misbehaving.
- Jailed: Validators misbehaved and is in Jail
- Unbonded: Validators are not in the Validator set, therefore not sign block and do not earn reward. It is still possible to delegate Validator.