Validators and Delegators are essential components of the Vyvo Smart Chain (VSC) network, playing key roles in its operation and security.
Validators
Validators are participants who stake their Vyvo Coins (VSC) as collateral using staking contracts to secure the network. By processing transactions, they help maintain the decentralization and integrity of the VSC network. In return for their services, validators receive rewards, which are distributed among all stakers based on their stake at each checkpoint, with additional bonuses for the proposer.
To become a validator, participants must run a Validator Node and lock up a minimum of 400,000 $VSC as a stake in the ecosystem. This requirement ensures that validators have a significant investment in the network, incentivizing them to act in their best interest.
Delegators
Delegators are stakeholders who choose not to run a validator node themselves but instead secure the network by delegating their stake to validator nodes. They play a crucial role in the system by selecting validators to delegate their stake to. Delegators stake their $VSC by delegating them to a validator and receive a percentage of the validator's rewards in exchange.
However, delegators also share risks with their validators. If a validator makes an error or acts maliciously, each of their delegators is at risk of being partially slashed in proportion to their delegated stake. Therefore, delegators must carefully consider the reputation and performance of validators before delegating their stake.