For Validators
Validators are the backbone of Bitplanet's security and consensus. By running validator nodes and staking BPL tokens, you secure the network while earning commission on staking rewards from the distribution module through Proof-of-Stake consensus.
What Validators Do
Validators on Bitplanet perform the essential functions of blockchain operation:
Validate transactions submitted to the network
Propose new blocks when selected by the consensus algorithm
Participate in consensus using CometBFT (Tendermint) protocol
Vote on governance proposals that shape network parameters
Maintain network security through staked capital at risk
Bitplanet uses BitSDK's battle-tested Proof-of-Stake consensus, providing security guarantees similar to other major Cosmos chains while supporting EVM compatibility for smart contracts.
How Rewards Work
50% of newly minted BPL tokens flows to the distribution module for staking rewards. The remaining 50% flows to the AI Attribution Pool for creators, contributors, and AI Apps (the siphon percentage is adjustable via governance). This distribution ensures strong security incentives while funding innovation—understand the rationale behind this split.
The distribution module then allocates tokens using standard BitSDK mechanisms:
Community tax (typically ~5%) goes to the community pool for ecosystem development
Staking rewards (~95% of the 50%) are distributed to validators and delegators
Validators earn their commission rate on rewards from their stake pool
Delegators receive the remaining rewards proportional to their stake
Reward Calculation
Each block, validators earn commission based on:
Your total stake weight (self-bonded stake + delegated stake)
Your uptime and performance (missed blocks reduce rewards)
Total network stake (your proportional share)
Commission rate (what you keep before distributing to delegators)
Example Earnings
If the network mints 1,000 BPL per day:
Distribution Module receives: 500 BPL (50%)
AI Attribution Pool receives: 500 BPL (50%)
From the distribution module's 500 BPL:
Community Tax (~5%): ~25 BPL → Community pool
Staking Rewards (~95%): ~475 BPL → Validators & Delegators
If you control 5% of total stake with 10% commission:
Your validator's staking rewards: 23.75 BPL (5% of 475)
Your commission: 2.375 BPL (10% of 23.75)
Your delegators receive: 21.375 BPL (90% of 23.75, distributed proportionally)
Plus you earn transaction fees from all transactions in blocks you propose.
Note: The percentages for community tax and commission are examples. Actual values are determined by governance parameters and individual validator commission rates.
Validator Responsibilities
Consensus Participation
Sign blocks when you're not the proposer
Propose blocks when selected by consensus
Vote on blocks to reach consensus within seconds
Maintain uptime to avoid missing consensus rounds
Governance Participation
Review proposals submitted by the community
Vote on governance decisions affecting network parameters
Propose changes to improve network operations
Communicate reasoning for votes to delegators
Network Security
Protect your keys using HSMs or secure key management
Monitor for attacks on your infrastructure
Update software promptly when new versions release
Maintain backups of critical configuration and keys
Risks and Slashing
Validators face penalties for misbehavior or poor performance:
Slashing Conditions
Double signing: Signing two blocks at same height (severe penalty)
Downtime: Excessive missed blocks (moderate penalty)
Governance violations: Potential future slashing conditions
Slashing Penalties
Double signing: 5%+ of staked tokens slashed
Downtime: Warning period, then jailing and minor slashing
Jailing: Removal from active set until manual unjail action
Both self-bonded stake and delegated stake are subject to slashing, making validator security paramount.
Commission and Delegators
Validators can attract delegators by offering competitive commission rates:
Commission rate: Percentage of delegator rewards you keep
Max commission: Upper bound on commission changes
Max change rate: Maximum commission adjustment per day
Lower commission attracts more delegators but reduces your direct earnings. Most validators balance around 5-10% commission while providing excellent service.
What Affects Your Earnings
Several factors determine your validator profitability:
Total stake: More stake means larger proportional rewards
Commission rate: Higher rates increase revenue but may reduce delegations
Uptime: Near-perfect uptime maximizes rewards
Network growth: Growing BPL inflation increases absolute rewards
Competition: Number of active validators affects individual share
Self-bonding: Your own stake demonstrates commitment
Successful validators focus on reliability, communication with delegators, and active governance participation.
Validator Economics
Beyond block rewards, validators may earn from:
Transaction fees: Priority fees from users wanting faster inclusion
MEV (Maximal Extractable Value): Advanced strategies for transaction ordering (requires additional infrastructure)
Delegation services: Some validators charge separate fees for delegation management
Related services: Providing infrastructure, analytics, or tools to the ecosystem
Most validator revenue comes from block rewards and transaction fees.
Governance Influence
As a validator, your governance participation carries weight:
Delegators inherit your votes unless they vote directly
Validator votes have high visibility in the community
Proposal outcomes directly affect your economic interests
Network upgrades require validator coordination
Active, reasoned governance participation builds trust with delegators and strengthens your validator brand.
Related:
Governance - Participating in network decisions
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