🪙Stake
Last updated
Last updated
Staking in the Viper Network is a fundamental stage where participants commit their tokens as a form of collateral to actively engage and contribute to the network's operations. By staking tokens, participants demonstrate their commitment to the network's success and gain the opportunity to earn rewards in return.
Requestors in the Viper Network stake tokens to gain access to send relays on the network. The amount of stake and the USD value of tokens at the time of staking determines the number of relays they can send. After each session, the stake is burned based on the number of requests sent, ensuring that the stake aligns with the level of activity and resource usage.
Servicers in the Viper Network stake tokens to be part of the network and receive incentives for servicing the relays sent by the clients. All nodes in the network are staked as validators, but only the top stakers are selected to validate blocks. This staking mechanism serves multiple purposes.
Staking tokens act as a barrier to prevent anyone from easily joining the network and potentially causing bloat or disruption. By requiring a stake, it ensures that participants have a genuine commitment and stake in the network's success.
Staking serves as a form of security and alignment of incentives. Servicers who stake tokens have a direct financial stake in the network's proper functioning and are motivated to provide reliable and efficient relay services. This aligns their interests with the network's goals and encourages them to maintain high-quality service.
Staking becomes expensive for misbehaviour. In case of any malicious activity or failure to follow the network's rules, a portion of the staked tokens can be slashed as a penalty. This discourages misbehaviour, enhances network security, and ensures that participants have an economic disincentive to act against the network's best interests.
To participate in the network, servicers stake a certain amount of VIPR tokens either directly or through delegated staking.
Direct staking is the process of having the operator of the servicer be the recipient of the rewards of that servicer.
Delegated staking is the process of having the operator of the servicer be a different account from the account that receives the rewards.
