CratD2C Blockchain Consensus: Validators & Delegators
Comprehensive Guidelines, Rewards & Penalties
How to Become a Validator
Choosing Validators for Blocks Producing
Validator Rewards
Validator Penalties
Validator & Stop-List
Validator Deposit and Rewards Management
How to Become a Delegator
Delegator Rewards
Delegator Penalties
Delegator Deposit and Rewards Management
Delegator & Stop-List
How to become a Validator: To become a Validator, you need the following. 1. Run a CratD2C Node: A separate machine running a node open to all nodes on the CratD2C DPoS network. Find the entire configuration settings Here
2. Make a Deposit: Set the reward commission and stake at least 100,000 $CRAT Native Coins into the staking contract. As soon as your deposit is confirmed, you will become an active (HEALTHY) Validator. Any user (Delegator) will be able to delegate $CRAT Native Coins to your Validation Pool.
Rewards & Commissions: Validator commission is the reward percentage (set by the validator, from 5% to 30%) deducted from the total rewards for validating transactions and generating blocks. This deducted amount is the validator’s reward share. The delegator’s rewards share is the remaining total rewards distributed proportionally among the delegators based on their stake. Choosing Validators for Blocks Producing Block producers are a committee selected from the validator pool based on their stake, which occurs at regular intervals. Here’s the breakdown of how the block producers are chosen: 1. Initiating: The elections are initiated by the node that creates a block, which includes the next election.
2. Pre-Selection: All nodes that want to become validators participate in the election. To select the candidates, the total deposit amount for each validator is calculated as an accumulated value, comprising the validator's deposit and the deposits of delegators for this validator. The top 100 candidates with the largest cumulative deposits participate in the elections.2
3. Sorting: pre-selected candidates are ranked in ascending order of their cumulative deposits.
4. Range Assignment: Each candidate is assigned a number ranging from 1 to 1000 proportional to their stake. The range must be at least 1.
For example: a. The network currently has four (4) validators with corresponding cumulative deposits: i. A: 15M $CRAT,
ii. B: 7M $CRAT,
iii. C: 3M $CRAT,
iv. D: 1M $CRAT.
b. Now we need to sort these validators; the result is: [D, C, B, A]
c. Calculating the number range for each validator:
5. Random Selection: A random number within the total range is generated. The candidate whose range includes this number becomes a validator.
6. Iterations: The process is repeated until the required number of validators is selected. The maximum is 18, so there can be no more than 18 block producers for each epoch.
7. New Epoch: Elected validators participate in block production in the next epoch. Validator Rewards Validators of the CRAT Blockchain receive two (2) types of rewards: ● Fixed APR reward (the reward based on the APR, which is accrued until the validator gets into the stop-list. 15% APR for the validator fixed reward.); ● Variable reward (percentage of transaction fees and block-generating rewards).
All the rewards are CRAT native coins, and a Variable reward is paid out every 3 days (recommended) based on the transaction fee amount.
Validator Penalties The validators are slashed each epoch for malicious activities, such as double-signing or downtime. The elected validators who missed at least 25% of block validations are penalized. When the validator is slashed, a 3-month trial period begins for this validator. If the validator is not slashed again during this trial period, a fixed amount of 100 $CRAT coins is withdrawn from their deposit upon the subsequent slashing. And if the validator gets slashed during the trial period, all of their fixed APR reward accumulated from the last slashing (trial period start date) and a fixed amount of 100 $CRAT coins are also withdrawn from the deposit amount as a penalty. Each time a validator gets slashed, all of its delegators also lose 5% of their deposit as a penalty for this validator. All slashing penalties are collected at the network slashing receiver address.
Validator & Stop-List Validator can be sent to the stop list in 2 cases:
1. The protocol detects any malicious activity or misbehaviour, gets slashed, and the deposit gets below the minimum deposit limit.
2. The validator requests withdrawal from the network on its own. In any case, the following takes place:
1. The rewards are not accrued from the stop-list moment (both fixed and variable);
2. The Withdrawal Cooldown period countdown starts (7 days for validators). Withdrawal Cooldown is the period following the stop-list event, during which the validator can withdraw their deposit and leave the network.
3. All delegators of this validator are automatically added to the stop list (a withdrawal request is made, and the cooldown period begins).
There are two (2) ways for a validator to leave the stop list:
1. Revival: A validator cancels the withdrawal request.
a. If a validator’s deposit is lower than the minimum (100,000 $CRAT), he should add more CRAT coins to his deposit to make it bigger or equal to the minimum.
b. If the active validators limit is reached (101 Validators), this validator can’t be revived.
c. As soon as a validator is successfully revived, it continues receiving the fixed APR rewards.
2. Exit: Withdraw the deposit and exit the network.
a. To fully exit the network, a validator should wait for both Withdrawal Cooldown (7 days) and Claim Cooldown (14 days) to finish.
b. When a validator exits the stop list, all of their delegators exit automatically (a withdrawal request is made, and the cooldown period begins).
A validator can claim their accumulated rewards while being on the stop list, but can’t restake them. Validator Deposit and Rewards Management
First of all, when you are managing your validator deposit, you should remember the cooldown periods
● Withdrawal Cooldown - the period following the stop-list event during which the validator can withdraw their deposit and leave the network, which is 7 days for validators.
● Claim Cooldown - the period from the last reward claim, after which the validator can claim their freshly accumulated rewards, which is 14 days for validators.
Any validator can increase their deposit at any time, provided they are not on the stop list. When a validator is on the stop list, they can increase their deposit during the revival (when cancelling the withdrawal request).
Any validator can restake their rewards, which means the fixed and variable accumulated rewards (not previously claimed) are claimed and added to the current deposit within a single transaction. For that to happen, three (3) conditions must be met:
● a validator is not on the stop-list;
● the accumulated reward is above zero;
● The Claim Cooldown period is finished.
If a validator is on the stop list and both cooldown periods have expired, any user can execute the unstake for them; this way, the validator will exit the network.
When the Validator unstakes, all their delegators also get unstaked. Validators and delegators receive their deposits and rewards in their wallet. How to Become a Delegator To become a delegator, you need to:
1. Choose the validator (or validators) to which you want to deposit. Take a look at the commission of the validator. The lower the commission is set, the larger your reward share will be.
2. Make a deposit (or stake) of at least 1,000 $CRAT Native Coins to the validator (or to each
validator if you choose multiple).
Once you’ve made a deposit, you will start receiving the delegator rewards. Delegator Rewards Delegators of the CRAT Blockchain receive two (2) types of rewards:
● Fixed APR reward (the reward based on the APR, which is accrued until the delegator gets into the stop-list. 13% APR for the delegator fixed reward.);
● Variable reward (the commission: percentage of validators variable reward).
All the rewards are CRAT native coins, and a Variable reward is paid out every 3 days (recommended) based on the transaction fee amount.5 Delegator Penalties Each time a validator gets slashed, all of its delegators also lose 5% of their deposit as a penalty for this validator. All slashing penalties are collected at the network slashing receiver address. Delegator Deposit and Rewards Management First of all, when you are managing your delegator deposit, you should remember the cooldown periods:
● Withdrawal Cooldown - the period from the stop-list event after which the delegator can withdraw their deposit and leave the network, which is 5 days for delegators.
● Claim Cooldown - the period from the last reward claim after which the delegator can claim their freshly accumulated rewards, which is 30 days for delegators.
Any delegator can increase their deposit at any time, provided they are not on the stop-list. When a delegator is on the stop-list, he can increase his deposit during the revival (when cancelling the withdrawal request).
Any delegator can restake their rewards, which means the fixed and variable accumulated rewards are claimed and added to the current deposit within a single transaction. For that to happen, three conditions must be met:
● A delegator is not on the stop-list;
● the accumulated reward is above zero;
● The Claim Cooldown period is finished.
In case a validator or delegator requests withdrawal, the cooldown period starts is defined as:
1. If only a validator has requested withdrawal, the delegator cooldown starts at the same time;
2. If only a delegator has requested withdrawal, the delegator's cooldown starts at the same time;
3. If both the delegator and validator have requested a withdrawal, the earliest of the two times is the start of the delegator's cooldown.
If a delegator is on the stop-list and both cooldown periods have expired, any user (Validator or the Delegator) can execute the unstake on their behalf; this way, the delegator will exit the network.
When the Validator unstakes, all their delegators also get unstaked. Validators and delegators receive their deposits and rewards in their wallet. Delegator & Stop-List
Any delegator can be sent to the stop-list in the following cases:
1. The validator was sent to the stop-list. a. Wait for the cooldown to finish and withdraw.
b. Wait for the validator to revive;
c. Wait for somebody to call the unstake for him.
2. Delegator’s deposit has decreased below the minimum deposit amount (1000 CRAT).
3. Manually call the request withdrawal.
In cases 2 and 3, a delegator can exit the stop-list in 2 ways:
a. Revival: A delegator cancels the withdrawal request.
i. If a delegator’s deposit is lower than the minimum, he should add more CRAT native coins to his deposit to make it bigger or equal to the minimum.
ii. As soon as a delegator is successfully revived, they continue to receive the fixed APR rewards.
b. Exit: Withdraw the deposit and exit the network.
i. To exit the network entirely, a delegator should wait for both Withdrawal Cooldown and Claim Cooldown to finish.
A delegator can claim their accumulated rewards while being on the stop-list, but cannot re-stake them.
If a delegator is already on the stop-list, they may still be penalized if their validator gets slashed.
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