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What is Validating?

In this module, we will see how validating works for the Mavryk blockchain. More precisely, we will see the different actors involved, from creating new blocks to their validation. We will then see the associated reward system, and how to deploy your own validator. Finally, we will present a list of existing validators and the criteria to evaluate them.

What is validating?​

To achieve its consensus, Mavryk Network uses a Liquid Proof of Stake (LPoS) consensus mechanism. How does LPoS Work? On Mavryk, validators of the network temporarily lock a part of their tokens as a frozen bond (which they cannot use anymore) to obtain the right to create a block. The creator of the next block is called the validator and is chosen randomly among all the candidates, based on the number of locked MVRK. In exchange for their work, the validator receives a reward in MVRK.

What is delegating?​

If a MVRK holder does not have 6,000ṁ or does not want to set up a computing infrastructure to bake blocks, they may delegate their MVRK to a validator. Delegating lets token holders (i.e. delegators) "lend" their tokens to a validator (i.e. a delegate), giving the validator a higher probability of being selected to validate and attest blocks. In turn, validators share the additional revenue generated from the delegated tokens with the delegators, in proportion to their percent share. Note that this process does not transfer ownership of the delegator's MVRK. Hence, validators cannot spend or control the MVRK delegated to them, ensuring that validators cannot appropriate the delegator's funds.

With LPoS the number of validators is unlimited (everyone can participate), and delegation is optional.

In Mavryk, we call participants in the block validation process delegates. Each delegate can create, sign and attest blocks.

Validating and attestation rights are attributed at random, several cycles in advance. To deter dishonest behavior (e.g. double validating or double attestation), each delegate must place a fixed quantity of MVRK as a security deposit for a limited time (five cycles), which will be confiscated if they attempt to compromise the chain.

Prospective validators must meet the following requirements:

  • Server available round the clock and stable internet connection
  • At least 8GB of RAM
  • SSD disk (preferably with more than 100GB storage)
  • At least 6,000ṁ as a staking balance (own funds + delegated balance)

The more MVRK a validator holds in his staking balance, the higher his chances to bake blocks and earn validating rewards.

Liquid Proof-of-Stake and delegation​

On Mavryk, validating rights are attributed randomly but proportionally to the staking balance. A MVRK holder may:

  • become a validator if they possess at least 6,000ṁ in their own funds or by delegation.

  • delegate their MVRK to a validator, to participate in the consensus.

In practice, certain validators may pass on some of the rewards they receive to the individuals who delegated their MVRK to them. This distribution may encourage others to delegate their MVRK, thereby increasing the delegated balance of these validators and so their staking balance, i.e. their chance of validating/attesting.

Liquid Proof-of-Stake (LPoS) provides the option for a MVRK holder to retain ownership of their funds while delegating their associated (voting, validating) rights to a validator. This principle differs from the delegated Proof- of-Stake (DPoS) of other blockchains, in which participants vote for a restricted number of block validators.