What’s the Benefits of Becoming a Delegator or Validator for Fusotao Protocol?

Validator

A blockchain validator is someone who is responsible for verifying transactions on a blockchain. Once transactions are verified, they are added to the distributed ledger.

As transactions on the blockchain are initiated by users, they are queued on the network for subsequent validation. Validator nodes then batch individual transactions into a block to verify it. Each blockchain has its own rules pertaining to the number of transactions per block. When the block has been completed, validators process it to add it to the blockchain as a permanent record.

There are two common validation protocols of a blockchain network, which are Proof-of-Work and Proof-of-Stake.

PoW-based blockchains, are Bitcoin (BTC) or Ethereum (ETH), but they are energy-consuming,slow transaction speeds and high fees,while PoS blockchains, such as Solana (SOL) or Ethereum 2.0 are the reverse.That’s the the reason Fusotao Protocol is built on the Proof-of -stake Blockchain network.

Delegator

Delegators are token holders who cannot, or do not want to run a validator node themselves. Instead, they secure the network by delegating their stake to validator nodes and play a critical role in the system, as they are responsible for choosing validators.

What Is Proof-of-Validation?

Proof-of-validation (PoV) is a unique proof-of-stake (PoS) consensus mechanism that works to achieve consensus through staked validator nodes. Each node within a PoV system keeps a complete copy of the sequence of transactions in blocks that are created on the blockchain. A copy of all of the user accounts can then be identified by a user’s public key, as well as whichever crypto token that node owns.

From this point onwards, a user can stake their coins inside of the validator nodes. The number of tokens staked within each validator will consequently determine the number of nodes that a specific validator possesses.

A new block is confirmed once a set of validators, with at least two-thirds of the network’s total voting power, send a commit vote for that block.

Role of Validators and Delegators in the relationship between Fusotao Protocol and Octopus Network

Fusotao protocol is built based on the paradigm of “execute off-chain, verify on-chain” which means that when transactions are matched on Fusotao Protocol(off-chain), they are verified by validator nodes on the Octopus Network(on-chain).

Fusotao Protocol being an appchain on the Octopus Network makes it an independent blockchain, there are validator nodes of the appchain in the Octopus network, which collect and verify the transactions of the appchain. These validator nodes are run by OCT holders who stake OCTs to provide security for the appchain.

Steps of becoming a Validator or delegator for Fusotao Protocol on the Octopus Network

Based on Octopus Network,the following

are their requirements;

Validator

● Choose appchain (Fusotao Protocol) and stake 5,000 OCT as least;

● Run the validator node, ensure its availability is as high as possible

● The unbond period is 21 days

Delegator

● Delegate the OCT to the validator, No other operations are required;

● For delegator, the current minimum amount is 200 OCT.

● The unbond period is 21 days.

The detailed guide about how to delegator: https://docs.oct.network/maintain/delegator-delegate.html

You can stake your OCT to earn TAO rewards here: https://mainnet.oct.network/appchains

Note: A node is technically a computer or other electronic device running software

Benefits of becoming a Validator or Delegator for Fusotao Protocol

For providing security for an appchain like Fusotao Protocol you are going to be rewarded in the following ways;

1. Earn rewards from Octopus Network

Octopus Network rewards Validators and delegators of all appchain, and the rewards are calculated based on the bias of block generation and recorded per era (approximately 24 hours). If the bias of block generation of a validator reaches the expected 70% in an era, there will be the full reward of this era.

Also, rewards are distributed based on the staking amount of the validator node, which means that the higher the stake amount, the higher the reward the validator node will receive when they’re 100% available when forming the consensus. For the staking reward of the validator node, the validator gets 20% as a commission fee, and then the remaining staking rewards are distributed between the validator and the delegator in proportion to the staking amount.

2. Earn Validator rewards from Fusotao Protocol

Verification nodes of the Fusotao Protocol are provided by the Octopus Network (OCT). Community users can obtain TAO rewards by becoming the validators or staking OCT to validators as delegators in the octopus network and the validators will share 20% of the TAO rewards of the delegators staked OCT in the validators’ nodes. 7.5% of the total token will be allocated to the validators and delegators in the Octopus Network in 5 years.

💫 About Fusotao Protocol

The Fusotao protocol is a verification protocol for orderbook-based matching system using the paradigm of “execute off-chain, verify on-chain”. Fusotao network is an Octopus Network based application chain to hold users’ assets and verify the matching transactions from off-chain exchange services. Founders can build their own DEXs by using the Fusotao appchain as an on-chain verifier and deploying their own off-chain matching server. Communities can earn rewards by trading on the DEXs or directly staking tokens for the DEXs backed by Fusotao Protocol to share transaction fees from them.

🔴 You can reach Fusotao here:

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