NexDAX Chain Validator Overview
What is NexDAX Chain?
NexDAX Chain is an innovative solution to bring programmability and interoperability to NexDAX Chain. NexDAX Chain relies on a system of 21 validators with Proof of Staked Authority (PoSA) consensus that can support short block time and lower fees. The most bonded validator candidates of staking will become validators and produce blocks. The double-sign detection and other slashing logic guarantee security, stability, and chain finality.
What is Validator?
NexDAX Chain relies on a set of validators who are responsible for committing new blocks in the blockchain. These validators participate in the consensus protocol by signing blocks that contain cryptographic signatures signed by each validator's private key. The validator set is determined by a staking module built on NexDAX Chain for NexDAX Chain, and propagated every day UTC 00:00 from BC to NC via Cross-Chain communication.
Validator's rewards come from transaction fees and commission fees from delegators.
Let us also assume that the reward for a block is 100 NT and that a certain validator has 20% of self-bonded NT and sets its commission rate to 20%. These tokens do not go directly to the proposer. Instead, they are shared among validators and delegators. These 100 NT will be distributed according to each participant's stake:
Commission: 80*20%= 16 NT Validator gets: 100*20% + Commission = 36 NT All delegators get: 100*80% - Commission = 64 NT
If validators double sign, are frequently offline, their staked NT ( not including NT of users that delegated to them) can be slashed. The penalty depends on the severity of the violation.
Risks for Validators
If you try to cheat the system, or act contrary to the specification, you will be liable to incur a penalty, known as slashing.
Loss for Double-Sign Slash
Running your validator keys simultaneously on two or more machines will result in Double-Sign slashing.
Penalty for Double-Sign Slash:
- 10000 staked NT will be slashed for the validator.
- The Double-Sign Jail time is 2^63-1 seconds, which means the candidate cannot become a validator anymore.
Note: Rewards for submitting double-sign evidence: 1000NT Anyone can submit a slashing request on BC with the evidence of Double Sign of NC, which should contain the 2 block headers with the same height and parent block, sealed by the offending validator.
Loss for Offline Slash:
If a validator missed more than 50 blocks every 24h, the blocking reward for validator will not be relayed to BC for distribution but shared with other better validators. If it missed more than 150 blocks every 24h, then this will be propagated back to BC where another Slashing will happen
Penalty for Offline Slash:
- 50 staked NT will be slashed for the validator.
- The Downtime Jail time is 2 days, which means the candidate can send a
unjailtransaction to become a candidate again.
Loss for Too Low self-delegation
Validator candidates must stake 10000NT as self-delegation. If the self-delegation amount is lower, the Jail time is 1 day.