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key-features.md

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Key Features For Validators

  • Open Participation: Anyone can register as a validator. Validators are responsible for managing their staking pools and nodes. Creating a new Validator costs 10.4449 ALGO, which is sent to the fee sink. This is meant to help prevent spam. In addition to the 10 ALGO sent to the fee sink, each pool costs 6.1978 ALGO in MBR / storage costs. No fees are charged by the protocol itself.
  • Secure Account Management: Validators must specify an owner address (preferably a cold wallet) and a management address (hot wallet) for operational tasks. This dual-account system ensures stronger security while facilitating pool management.
  • Flexible Staking Pool Configuration: Validators have the autonomy to define various parameters for their staking pools, including a commission, which is paid to the Validator each epoch. They can also specify participation requirements, such as holding certain assets or NFTs to create community-specific pools. Find more in Validators.
  • Dynamic Reward Distribution: The protocol supports adjustable payout intervals and reward distribution mechanisms, ensuring validators and stakers receive their earnings according to the staked amount and pool performance. This includes the option for validators to offer additional reward tokens alongside ALGO earnings. Find more in Rewards.
  • Automated Participation Key Management: The Réti node daemon automates the generation and renewal of participation keys, maintaining pool activity and ensuring continuous consensus participation.
  • Decentralized Pool Creation and Management: Each pool operates as a separate Algorand account, with its contract instance allowing for decentralized consensus participation. Validators can create new pools up to their limit, manage staker contributions through a master validator contract, and track staker balances via an on-chain ledger system.
  • Transparent and Fair Reward System: A ledger within each pool tracks staker contributions and rewards, adjusting for the timing of stakes to prevent gaming of the reward system. Rewards are calculated based on the pool's performance, with mechanisms in place to ensure a fair distribution among all participants.