How To Become A Validator
The Fuse network is operated by validator nodes that are hosted by network participants from all around the world. The network allows entrepreneurs to easily plug payments into their products and onboard their users to a platform that allows them to pay, transact, and access financial services in their favorite currency.
All access to the network is public, and all the code is open source so that it can be customized and localized to developers' and users' needs. Any application hosted on the Fuse chain needs to pay small fees to the network's validators to validate its transactions on the network.
The more communities and users conducting transactions, the more validators will earn as a reward for approving these transactions. This allows the network to grow organically as more usage in the system and more network participants means rewards increase.
What does it mean to be a validator?
Any entity holding the FUSE token can run a node that approves transactions in the network and, in doing so, receive rewards in the form of Fuse tokens (FUSE).
Validators run special software that holds a copy of the Fuse blockchain and validates transactions in the network.
Every 5 seconds, the network groups the latest transactions broadcast to the system, validates them, and signs them so they can never be changed in the future.
The validators receive a block reward (X per block) for this work. Yearly inflation of 5% is distributed between all validators (the block reward is updated to accommodate this functionality).
Validators are the guardians of the network and are in charge of not only maintaining it but also steering it in its future through the governance mechanism that allows any holder of FUSE tokens to vote on important decisions and upgrades to the network in its development and resource allocation.
Who should become a validator?
Companies that build on the network
The Fuse open-source stack allows many companies to collaborate on the same code base. Allowing any company interested in using the Fuse services and code to join as a stakeholder is a new innovative approach to collaboration and partnerships.
Any company that builds products on the network can own a piece of it and become a stakeholder. Running a node in the process will allow the company to earn rewards and grow as the network grows.
The company can also use this open-source infrastructure to save costs for its development needs. Operating a node gives reliable access to the network, and participation in its governance aligns all the different interests behind the operation of the network.
3rd party service providers
We are starting to see many service providers creating and providing services across blockchains—services like KYC, exchanges, credit score providers, lenders, etc.
Any service provider can become a stakeholder in the network, and already today, we are seeing the potential of cross-blockchain transactions uniting business processes between different entities using cryptography to cut out middlemen.
Community operators on Fuse
Community operators are the foremost stakeholders in the network and can upgrade themselves to a validator and thus provide better access to their clients.
Who shouldn’t become a validator (and what they can still do)
- Non-technical users. Running a node requires technical background in blockchain and web hosting. It’s not very complicated, but also not trivial or basic.
- Simple holders. We are looking for validators who are invested in the future of the network and are looking to take an active part. The DPoS (Delegated Proof of Stake) mechanism was created to achieve this.
Not everybody who wants to earn rewards needs to be a validator. Any token holder can delegate their FUSE tokens to a validator to earn rewards.
How can I become a validator?
- Minimum of 100,000 FUSE tokens staked or delegated. In a DPoS blockchain, all the validators must have a staking requirement. The stake of 100,000 FUSE needs to be locked in a contract to be eligible to become a validator.
- Run a full node.