Why are there 21 addresses with very large stake❓
At present, 8 validators with huge stake volume are officially deployed and distributed in 8 different countries around the world. The purpose of large-scale stake is not to divide the incentives of the community, but to consider that the unstable online rate of many nodes in the testnet will lead to reduce the efficiency and stability of the entire network. For example, if more than 4 of the 11 nodes in each consensus are not online, it will lead to an empty situation. It takes a few minutes to conduct a consensus on the entire network. Wormholes believes that it is unfriendly for the entire network. So 21 large validators are staked to keep the network efficient and uninterrupted.
Why don’t many validators get rewards❓
Because the DRE algorithm is a random selection of placement points, many validators may not be able to get rewards immediately when they enter the network. This needs you to read DRE consensus algorithm introduction carefully. As long as you maintain a stable online rate, you will have the opportunity to acquire block rewards. The income of validators with the same stake volume may also be different, which depends entirely on the characteristics of DRE. This has a certain relationship with 8 addresses with excessive stake volume. They only do this to ensure network stability. They will not plunder the interests of the community, Question 3 and 4 will tell everyone how to ensure relative fairness.
What mechanism will Wormholes use to balance the infrastructure community❓
The revenue generated by the official 8 high-stake validators will all be used for the construction of low-energy infrastructure communities. Wormholes will distribute all the output revenue to the validators who maintain the online rate, so that these can contribute to the network. Validators can increase the stake amount to obtain better block incentives. This cycle will be around 5 to 10 days. There will be the statistics of the online rate, and all nodes that contribute to the network and remain online will be distributed evenly according to the statistic results. Although DRE is a relatively fair random algorithm, the more stake, the higher the number of participating consensus will theoretically be obtained. The random placement is a very important factor as well.
Test reward rules:
1️⃣According to the DRE+POS consensus algorithm, each block has 11 nodes participating in the final consensus, 7 nodes of them will acquire 7/11 reward of the mainnet, and there are 0.11 ERB rewards for every node each time, the more times they participate in the final signature, the more reward they will get.
About DRE consensus algorithm, please refer to this link:
DRE Dynamic Random Election Algorithm — The Perfect Complement to PoS
As a multi-layer and multi-dimensional public chain, Wormholes has from the beginning sought the optimal solution to…
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2️⃣The block rewards obtained by all nodes participating in the public testnest during the test process will become the only certificate for the exchange of mainnet assets. Regarding the asset exchange ratio, Wormholes will divide it into 3 levels according to the online rate of node. Assuming the lowest level of exchange ratio is A, then the exchange ratio of the second level is A*2, and the exchange ratio of the first level is A*3, so keeping online is the core criterion for getting more mainnet rewards.
About the final reward for validators❗
Because all the nodes participating in the test will issue 70000ERB by default, due to the high randomness of the DRE algorithm, some validators will have relatively high rewards, some will have relatively low returns, and even in extreme cases, some nodes will have no income for the time being. For the nodes that have no income after the whole test period, Wormholes will compensate according to the income of the lowest node in the whole network, provided that your validator must be online all the time. If you stay online all the time, this very extreme situation is almost impossible to occur.
How long will the test take? How will the final reward be exchanged for mainnet assets❓
The entire public testnet will be conducted for a minimum of 3 months, and all validators participating in the test will exchange the final mainnet assets according to the accumulated block rewards. The proportion of assets will be divided into 3 levels according to the online rate of the validator. For example, the proportion of the lowest level of online rate is A, then the proportion of the remaining two levels is A*2 and A*3, so as to ensure the high level of the entire network. The online rate achieves high stability and continuous high TPS trading experience.
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