The Nodle Network is a Liquid democracy with token weighted votes. This means that by running a Validator Node you contribute to the decentralization and integrity of the Nodle Network.
What is Staking
If you are a Nodle Cash token holder you can decide to block some of your tokens for a pre-defined period of time. You can then use your locked tokens (referred to as a "stake") to choose the validators producing blocks, become a validator and (later) help settle on decisions.
One can stake Nodle Cash to:
What do I Get
- Nominate and choose validators.
- Decide to support validators.
- Validators can then set a commission they give to supporters that nominate them.
- Become eligible to be a validator.
- Receive a revenue share from transaction fees.
- Validators receive 80% of the transaction fees in the block (20% are a protocol fee sent to Nodle to support its operations).
- If you stake and decide to support a validator, you receive a commission in the form of staking rewards.
In exchange for locking your tokens (you can't use them for the time they are locked, thus this is an opportunity cost for you as a token holder) you are offered different ways to get additional profits (aka more tokens for you):
- If you are running one or many validator nodes: you get 80% of the transactions fees included in the blocks you produce. The more blocks you produce, the more tokens you get. Of course, this also depends on the usage of the network which creates an incentive for validators to help push forward the network's adoption.
- If you are helping choose validators: validators typically share part of their collective fees with the token holders contributing to their stake. The amount of tokens is repartitioned proportionally to the stake of their supporters, if you are supporting them with more tokens you get more revenues.
No new Nodle Cash is distributed when blocks are created thus no inflation reward is given to stakers. New Nodle Cash is created by Network Contributors reporting IoT device's data.
Head over to the next wiki pages to learn how to become a validator or help choose them (you role would be of a Nominator).