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 the access to the network is public, and all the code is open source so that it can be customized and localized to their needs. Any community that lives on the Fuse chain needs to pay a small fee to the network's validators to validate its transactions in the community.
The more communities and users conducting transactions, the more validators will earn as a reward for approving the transaction. This allows the network to grow organically as more usage in the system and more network participants means rewards grow.\
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 are running 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 broadcasted to the system, validate 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 contribute their computer resources to maintain the network and need technical knowledge in hosting this kind of software (see Running a validator node) and participate in the network governance through voting.
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 and without 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 can become a validator (Technical requirements)
- See Running a validator node__
Who shouldn’t become a validator (and what can he 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 born to do this.
You can delegate your Fuse token to a validator of your choosing. Not everybody that wants to earn rewards needs to be a validator! Any token holder can delegate their Fuse token to a validator to earn rewards through the validator.
How to become a validator?
- Minimum of 100K tokens staked or delegated. In a DPoS blockchain, all the validators must have a staking requirement. The stake of 100K Fuse tokens needs to be locked in a contract to be eligible to become a validator.
- Run a full node.