Permissionless bonding, validator incentives, Casper economics, and more for validators on the Delta testnet.
Today, we announced the launch of the Zug500 Delta testnet, our last incentivized testnet before mainnet launch in Q1 2021. Validators are crucial for the security, uptime, and decentralization of the Casper Proof of Stake network. We have a strong base of loyal validators, and now have the ability to accept more during Delta in preparation for mainnet launch.
The Casper network has its own native token CSPR (Delta has testnet CSPR), which serves many functions for the network’s participants, and for validators in particular. When joining the network, validators use CSPR as a deposit to bond to the network. Users use CSPR to fund their transactions and validators receive CSPR rewards for maintaining the network and validating those transactions. New CSPR is minted to incentivize validators to remain in the network, and bonded CSPR is burned to punish malicious or underperforming validators.
Rewards are distributed through a process called issuance. New tokens are minted at a constant rate and allocated to participating validators. At the end of an era, issuance is paid to all validators based on their stake and participation in finalizing transactions. This ensures stable, continuous payments for honest validators, and eliminates the need to create pools.
The Delta testnet is a fully incentivized testnet, meaning validators act with testnet CSPR just as they would on the real network. Top active validators on the Delta testnet will be rewarded with the Casper mainnet token $CSPR when it goes live in Q1 2021 with the public mainnet.
Casper is permissionless, meaning validators may join and leave whenever they wish for no penalty. In order to stake in the network, prospective validators participate in bonding auctions for a limited number of validator positions, with winning bids becoming bonded as stakes. An open auction with open bids, a simple “first-price” resolution, and a fixed number of slots solves the issue with imprecise control over the security/performance tradeoff, while offering prospective validators an easy to understand procedure for joining. There is no minimum stake and the security/performance tradeoff is handled by an automatic on-chain slot number adjustment mechanism.
The Delta testnet has 50 open slots for validators, which will gradually expand to 200. You can see the current status here
Our Node Operator Guide walks you through anything you need to know about getting started as a validator on the Delta testnet in preparation for the mainnet launch in Q1 2021. Happy validating!