🍶Staking

Used to manage funds as stake by network maintainers.

Overview

Manage funds at stake by network maintainers.

This allows a user to voluntarily place funds under deposit. These funds are rewarded under normal operation but are slashed should the staked maintainer be found not to be discharging duties properly.

Validating

A validator is responsible for validating the block. In this scenario, the block is the contributing work entry being claimed.

Validators are chosen on rotation based on regular elections in each era.

Nomination

A nominator votes on a set of `validators to be elected. Once interest in nomination is stated by an account, it takes effect at the net election round. The funds in the nominator's stash account indicate the weight of its vote. The rewards and punishment that a validator earns are shared between the validator and its nominators.

Since nominators and validators share punishment and rewards it incentivizes the nominator to NOT vote for misbehaving/offline validators as much as possible, simply because the nominators will also lose funds if they vote poorly.

An account can become a nominator via the nominate call.

Voting

Actual validators are chosen from among all potential validators via election by the potential validators and nominators. The term voters is used to represent the union of potential validators and nominators all of whom participate in the election process.

The current election algorithm is implemented based on Phragmén.

The election algorithm's first priority is to elect validators with the most stake value and votes.

Then it tries to divide the nominator votes among candidates in an equal manner.

Optional post-processing can be applied to iteratively normalize the nominator staked values until the total difference among voters of a particular nominator is less than a threshold.

Rewards and Slash

The Pallet is attempting to embrace valid behavior while punishing any misbehavior or lack of availability.

Rewards must be claimed for each era before it gets too old by $HISTORY_DEPTH using the payout_stakers call.

Slash

Slashing can occur at any point in time, once misbehavior is reported. Once slashing is determined, a value is deducted from the balance of the validator and all nominators who voted for this validator.

The logic for slashing is further described in the slashing pallet documentation.

Reward

Validators and nominators are rewarded at the end of each era. The total reward is calculated using era duration and staking rate.

t is $HISTORY_DEPTH

points_{era(t)} are the reward points received by the team during an era

$_{stakedn, stakedv} is the total validator and nominator stake

$_{supply} is the total supply of the currency

The total reward is split among validators and their nominators depending on the number of points received during the era.

Reward points are issued to validators.

• 20 points to the block producer for producing a (non-uncle) block in the delay chain,

• 2 points to the block producer for each reference to a previous unreferenced uncle, and

• 1 point to the producer of each referenced uncle block

The validator and its nominator split their reward as follows:

The validator sets commission which is paid to the validator only. The commission =is deducted from the total reward paid to validator and its nominators and the remainder is split among validator and all of the nominators proportional to the value staked behind the validator.

Chilling

Any role above can choose to step back temporarily and just chill for a while.