Validator Security - Video: Securing the Cosmos - Ron Stoner Validators
- Block Reward in proportioin to stake
- Transaction Fees
- More Stake == more power
- Governance
Benefits to running a validator
- Pretty cheap to do!
Validator Networks:
- Cosmos
- Kava
- Polkadot
- Microtick
Cosmos - "The internet of block-chains"
Cosmos ATOM
Staking w/a validator
Why should I risk my $$$
- Block rewards - inflation on native tokens incentivize holders to bond their stake as non-bonded stake will be diluted over time
- In Aug 2020, Cosmos ATOM had a 7% inflation, and staked coins received 9.7% return
- Transaction Feeds: Bonus on the fees of the proposed block
Slashing
- Slashing is a violation to the network and consensus layer
- Jeopardizes the safety of other participants
- Financial incentive to "play nice"
Slashing Events
- Downtime - If you miss 95% of the last 10,000 blocks, then you get slashed
Double Sign
- Private key from a validator was used to sign two transactions...
- When that was detected, the validator was jailed.
Best Practices for Staking with a Validator
- Who do you trust with your money?
- Diversify (3 or more)
- Look at their uptime history
- Jail occurances?
- Redundant setup?
- Team profile and communication?