Very brief update this week. Most of the week has been testing code and ensuring we don’t have any massive vulnerabilities. So we’ll address some frequently asked questions that our staff and ambassadors have compiled.
The most common question we’ve received is on the minimum Proof-of Authority requirements for validators, system requirements and potential penalties for suspicious activity. Ultimately, the price is set by the decentralized community as the Top 100 nodes are the block-producing validators. The Top 100 can change constantly. If, for example, the 101st ranked stakeholder outbids the 100th ranked stakeholder, the seat changes. That outseated validator can then regain their seat. And so on.
It’s also important to note that just because a validator is ousted from the Top 100, doesn’t mean that their node isn’t still validating transactions and ensuring network health. It simply means that their node won’t have the authority to produce a block.
Getting back to the question, the floor is currently set at 50,000 $LOX. The community will then determine the seat price after 100 proposals. The 100th proposal will set the seat price. From there, the seat price must increase with each new block-producing validator. If 50,000 $LOX is determined to be the seat price, then 50,001 $LOX is the next and so on. Block-producing validators earn $LOX Token rewards for producing new blocks with a static inflation rate of about 5.5% each year.
Again, for example, should the 100th-ranked validator stake 1,00,000 $LOX, then the seat price will be 1,000,001 $LOX. The next active validator would then need to stake more than or equal to 1,000,001 $LOX.
Before you decide if running a node is something that you’re interested in, please ensure your machine meets these recommended minimum requirements: CPU x86_64 (either Intel or AMD) processor with at least 8 physical cores CPU, CMPXCHG16B, POPCNT, SSE4.1, SSE4.2, AVX RAM 8GB DDR4, 500GB SSD. Note: NVMe SSD is recommended. HDD will be enough for local net only.
The validator node does not need to be online at all times. It is possible to shut down for a few days if needed. It will require a resync though and there may not be a penalty if the shut down, resync and restart are all done within the same epoch. That said, unusual and suspicious activities can receive a two epoch ban with increasing penalties.
For those not interested in validating Lox Network blocks, and are only interested in helping the network through staking, token holders may stake by locking their tokens to a validator’s staking pool and earn a portion of the validator’s $LOX rewards as an incentive to stay involved with the community and support professional validators acting in good faith.
The amount of staking rewards one can earn is proportionate to the total amount of tokens staked to Lox Network. For example, if there are 1000 total tokens staked in the pool and you have staked 100 of those tokens, you can earn 10% of the rewards awarded to that pool. If there are 2000 total tokens staked and you have staked 100 of them, you earn 5% of the rewards.
If you decide to withdraw or stake to a new validator, simply unstake the desired amount. Those tokens will remain locked for as long as six epochs. Once the tokens are unlocked, the user can then withdraw the tokens to your wallet or restake them to a validator’s staking pool. Every epoch is a sequence of 50,000 blocks, or roughly 12 hours, so you can unlock your staked tokens in 2-3 days. The LOX Wallet provides a clear interface for staking, unstaking and withdrawing tokens.
Please keep the questions coming! Feel free to reach out to our staff and ambassadors on Discord, Twitter and Telegram. Don’t forget that Snapshot 4 of the Lox Trio is scheduled for Sunday and the MEXC trading competition is still going until the end of the month. Please check out our tweet for the referral link and details. Please note, the referral link both helps us out and ensures that your account is counted toward the competition.
We’ll keep our heads down and churning away! Thanks for the support as always #LoxFamily! – Team LOX