A Validator is an entity that operates a full node and validates transactions to secure the BitSong blockchain. In return for their services, validators earn rewards.

Validators participate in:

• Consensus: Voting on the validity of blocks.
• Governance: Voting on network proposals.

Users declare their intention to become a validator by sending a create-validator transaction to become a candidate. The total amount of staked tokens determines the validator's voting power and probability of being selected to produce blocks.

Currently, only the top 64 Validators by staked BTSG participate in consensus.

Staking is the act of depositing cryptocurrencies to help secure the BitSong blockchain.

• Delegators stake their BTSG tokens to a Validator for a share of the rewards.
• Validators stake BTSG tokens (their own + delegators') to participate in the network.

A full node runs the current version of the BitSong software to validate transactions and blocks. Operating a full node requires running non-compromised, up-to-date software with low network latency and zero downtime.

BitSong welcomes users to run full nodes even if they do not plan to become Validators.

A Delegator is a token holder who delegates their BTSG to a Validator to help secure the network in return for rewards. Unlike Validators, Delegators do not need specific hardware.

Responsibilities:

• Actively monitor their stake and Validator performance.
• Participate in governance votes.
• Manage risk (e.g., by staking to multiple Validators).

To become a Validator, you must send a create-validator transaction with the following parameters:

• Validator's PubKey: Private key used to sign prevotes and precommits.
• Validator's Address: Application-level address for public identification, delegation, and claiming rewards.
• Moniker: The validator's name.
• Website: (Optional) Link to your website.
• Description: (Optional) Short bio.
• Initial commission rate: Fees charged to delegators on rewards.
• Maximum commission: The absolute cap on your commission rate (cannot be changed later).
• Commission max change rate: Maximum daily increase allowed for commission.
• Minimum self-delegation: Minimum BTSG you must keep bonded. If you fall below this, you unbond.

Once created, you become a candidate. You must be in the top 64 by total stake to join the active set and earn rewards.

We strongly recommend testing your setup on the Testnet before launching on Mainnet. This signals readiness to the community.

1. Consensus: Run correct software, ensure high uptime, and secure private keys.
2. Governance: Vote on proposals.
3. Community: Participate in discussions and stay updated on ecosystem events.

Validators must vote on proposals (e.g., parameter changes, upgrades).

Staking is a safety deposit.

• Unbonding: Requires a 3-week unbonding period.
• Slashing Risk: During unbonding, tokens are still liable for slashing if misbehavior occurred before the unbonding started.
• Custody: Validators never have custody of delegator funds. They cannot steal tokens.

Proposers are selected deterministically based on bonded stake.

• If a validator holds 10% of total bonded stake, they will be selected as proposer 10% of the time.

For Stakers:

• Block Rewards: Inflationary BTSG minted per block.
• Transaction Fees: Fees paid for network usage.

For Validators:

• Commission: A percentage cut of the rewards earned by their delegators.
• Governance Power: Influence over the network's future.

Rewards are spread among validators and then to delegators.

Example:

• Block Reward: 1000 BTSG
• Validator Pool: 10 Validators (equal stake), each with 20% self-bond.
• Commission: 1%

Calculation for one pool (100 BTSG allocation):

1. Commission: 100 * 80% (delegators) * 1% = 0.8 BTSG
2. Validator Gets: 100 * 20% (self) + 0.8 = 20.8 BTSG
3. Delegators Get: 100 * 80% - 0.8 = 79.2 BTSG (distributed proportionally)

Fees follow a similar model but include a Proposer Bonus (1% to 5%) for including precommits.

Example:

• Total Fees: 1025.51 BTSG
• Community Pool Tax (2%): 20.51 BTSG deducted.
• Remaining: 1005 BTSG

If Proposer includes 100% signatures (5% bonus):

• Proposer Pool: Receives 105 BTSG (Base + Bonus).
• Other Pools: Receive 100 BTSG.

Rewards are then split between Validator and Delegators based on commission and stake share.

Validators can lose stake for misbehavior:

• Penalty-free re-delegation: Delegators can easily switch validators.
• UI Warnings: Wallets may warn users when delegating to validators who already hold too much power.

Hardware:

• Data center location with redundant power/network.
• Dedicated servers (specs rise with network usage).
• Firewall and HSM (Hardware Security Module).

Software:

• BitSong full node.
• Monitoring and alerting solutions.

Validators should use an HSM supporting ed25519 keys. Options include:

• YubiHSM 2
• Ledger Nano S
• Ledger BOLOS SGX enclave
• Thales nShield

Validators mitigate Denial-of-Service (DoS) attacks using Sentry Node Architecture.

1. Validator Node: Runs in a private subnet. Connects only to trusted Sentry Nodes.
2. Sentry Nodes: Public-facing full nodes. They handle the internet traffic and relay blocks to the validator.

If a sentry node is attacked, the validator remains safe and can spin up new sentries.

Running a validator requires:

• Skilled Team: Often multiple people for 24/7 coverage.
• Maintenance: Regular upgrades and bug fixes.
• Incident Response: Ability to respond immediately to outages or attacks.