As a proof-of-stake blockchain, there are a number of Validators that maintain Neon Link’s distributed ledger. They are vital in pushing network updates, as well as maintaining the security of the network through a decentralised consensus mechanism.
Neon Link uses this model to create a decentralised blockchain maintained by a distributed network of Validators. Did you read our article yesterday sharing insight into our path to a decentralised web3 gaming ecosystem? You can click here to check our 3-phase plan.
This article expands upon the 3 phase plan. Read on to find out how you can participate in our path to decentralisation by becoming a Validator. You can also support our journey by participating in the Proof of Stake consensus mechanism and governance of the network, by staking NEON Coins.
Over $10m in NEON (at presale price) will be available to be earned over a 10-year plus period.
How to Become a Validator?
In order to become a Validator, one would first need to have the right specification of hardware to ensure a Validator node that maintains its upkeep consistently.
Furthermore, in order to secure a Validator node, you will need at least 250,000 NEON (~$15,000 at presale prices). This is required to be self-delegated to the Node.
You can gather further insight into what is required to set up a Validator by checking out our Developer documentation. Please note, this information is subject to change ahead of Phase 2- more information will be provided as we reach Phase 2 of our mainnet rollout.
Incentives for Validators
With Validators playing an important role in the operations and security of the ecosystem, we intend to incentivise the growth of our pool of reputable Validators. As we enter Phase 2, we aim for around 20 active and decentralised Validators initially, then 100~ as we get closer to Phase 3.
This will be achieved through a total allocation of up to 100m NEON (~$6m at presale prices) to be distributed to active Validators on the Neon Link network over a 10-year+ period (~2033). These rewards will gradually decrease over time, with the greatest rewards being in the first few years as Validators are onboarded (up to 10m NEON per year = $600,000 at presale prices).
Validators can obtain increased stake delegated to their node through community participation: they can offer to provide rewards to those who support them in maintaining their position in the top 20.
Neon Link will encourage transparency and value-adding Validators. Those who actively look to help the ecosystem grow, from building cool products to supporting the growth of our community.
Delegating Neon to Validators
As an additional incentive to encourage participation in the consensus, security and governance of Neon Link, we have allocated 70m NEON ($4.2m at presale price) over a 10-year period to bolster rewards for our community of Neonites.
Those that delegate their NEON to active Validators and participate in governance will earn rewards from a massive 170m NEON ($10m+ at presale price) total allocation for this key component to the Neon Link ecosystem.
Governance on Neon
Governance is a fundamental component to our vision for a decentralised web3 gaming ecosystem. While not all decisions should require community involvement, particularly at the early stages of development (in order for us to move fast), we strongly believe in the strength of the community at large. We have some incredibly smart people across the internet who have vast experience across a number of different sectors, with different world views that can provide us unique perspectives.
More details on our pathway to enhance the feedback and community governance of Neon Link over time, in line with our vision. Our objective is to encourage and reward those who take the time to review and respond to proposals, while actively participating in community discussions around key topics.