Validator Node Licensing

Validator Node Licensing

• ERC721 NFT License Key: To become a validator on the GAN Chain, one must acquire a License Key, represented as an ERC721 Non-Fungible Token (NFT). This NFT serves as a validator's license, granting them the authority and responsibility to participate in network validation.

• ERC6551 Compliance: The License Key is compliant with the ERC6551 standard, allowing it to function as a token-bound account. This feature enables the NFT to accumulate incentives directly, with the NFT itself acting as the signer for transactions.

Validator Node Operation

• Validator Registration: Validators register in the network by purchasing the License Key NFT.

• State Root Determination: Validators are responsible for determining the correct state root of successor assertions in the network. This process is crucial for ensuring the accuracy and integrity of the blockchain's state.

• Claim Posting and Reward Mechanism: Validators post claims on assertions. Successful claims, verified by a designated contract, result in rewards being paid to the validators. The reward system is designed to incentivise validators to accurately determine and assert the next state root.

Incentive Structure

• Reward Calculation: The rewards for validators depend on several factors, including their License Key ID, the correctness of their state root assertions, and a challenge value that is determined after the state root is fully established.

• Token-Bound Incentives: The ERC1155 compliant nature of the License Key allows for a seamless accumulation of rewards within the validator's wallet, streamlining the incentive distribution process.

Protocol Integrity

• Assertion Consistency: The GAN Chain protocol mandates that each assertion must precisely utilize the messages present when its predecessor assertion was created. This ensures consistency and predictability in the network's operation.

• Incentivized Accuracy: Validators are incentivized to accurately calculate the successor state root and verifying the compute capacity, as their rewards are directly tied to the correctness.