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Staking - Validators and Delegators
Stakers are rewarded for helping to validate the ledger. They do this by delegating their stake to validator nodes. Those validators do the legwork of replaying the ledger and send votes to a per-node vote account to which stakers can delegate their stakes.
A 'Validator' on a Blockchain is like a banker who verifies every incoming transaction. A transaction will only be completed on the blockchain when it has been verified by the validator. Validators are assigned the duty to verify transactions to whether or not they are legal and accurate.
The primary benefit of staking is that you earn more crypto, and interest rates can be very generous. In some cases, you can earn more than 10% or 20% per year. It's potentially a very profitable way to invest your money. And, the only thing you need is crypto that uses the PoS model.
To become a validator, you need to stake BONE tokens with staking management contracts residing on the Ethereum mainnet. Rewards are distributed to all stakers proportional to their stake at every checkpoint with an exception being the proposer getting an additional bonus.
Validators are the key actor in maintaining the Shibarium network. Validators run a full node and secure the network by staking BONE to produce blocks, validate and participate in PoS consensus.
Validator performance is critical for the stability and security of Shibarium. In order to ensure the network is in secure hands, in the early stages validator selection will be a manual process requiring an application and interview for consideration.
To begin staking Shibarium (BONE), you will need to have BONE and Ethereum on the Ethereum Mainnet in your MetaMask wallet.
In order to participate in securing the network and to be rewarded for this doing this, validators are required to put up collateral “stake” which can be forfeited (i.e. “slashed”) programmatically if their actions break the programmatic rules that define the blockchain protocol which they secur.e
In exchange for their role and service, validators receive rewards proportional to their stake. The rewards are divided among all participants based on the amount of tokens they have staked. The user's reward balance is recorded in a contract, which is used to determine the rewards that can be claimed.
To become a delegator users need to stake a certain amount and approve the request after that they will be added to the delegator list.
Delegators are individual users or an entity that participate in a consensus mechanism by delegating their voting rights to a validator. Delegators can choose to vote for a validator of their choice and delegate their voting power to that validator. The validator, in turn, uses the combined voting power of all delegators to help secure the network and validate transactions. This allows for a more efficient and scalable consensus mechanism compared toPoW. Delegators are people who own BONE and choose to support the network by staking their tokens into validator nodes instead of running one themselves. They play an important role in the system by selecting which validator nodes will be responsible for validating transactions. Delegators choose to lend their tokens to validator nodes, and as a result, they are entitled to a portion of the rewards earned by those validators. On the other hand, this also implies that they are exposed to the same risks as validators. For example, if a validator fails to comply with the protocol, the delegators may lose a part of their tokens in relation to the amount they had delegated to that validator.