KYVE Validator Delegation Program Update: Mainnet Delegation And Curated Airdrop Breakdown
This past month, the KYVE Validator Delegation Program was put into action. For those unaware, this program aims to reward the top protocol validators for their previous efforts on our Incentivized Testnet, as well as secure an active mainnet slot more easily via delegated $KYVE rewards. In turn, this promotes further network participation from those already experienced with KYVE and increases the protocol’s decentralization and security.
In our previous article regarding this program, we outlined the process of checking a user’s eligibility for the program, and the first major steps in getting started. This includes creating a protocol validator profile on Kaon, and filling out this form.
Now, with already 200+ applications submitted and more underway, as well as the testnet protocol layer being live, it’s time to unveil further details regarding the mainnet delegation and its reward pool distribution:
The program’s 10 million $KYVE reward pool will be broken into two distribution types:
- Curated Airdrop: 2 million $KYVE will be distributed via airdrop to all 2,500 top protocol validators, with the amount depending on the Incentivized Testnet Leaderboard rank;
- Mainnet Delegation Program: 8 million $KYVE will be split evenly amongst the top 200 validators (40k $KYVE each) who make it into the mainnet delegation program.
In this article, we will break down these two types of distributions.
Protocol Validator Curated Airdrop
Now, with inter-pool security in place, although it highly increases protocol security, it limits the number of active validator slots available on the protocol layer, seeing that validators can participate in multiple data pools at once. This means our original goal of having 2,500 participating protocol validators is no longer relevant.
With this security measure in place, we assume that a good amount of protocol validators will join multiple data pools. However, due to the need for extra resources, we also believe that not all protocol validators will join every single data pool. Therefore, with every pool, the effective amount of new slots will be less than 50.
After analyzing this situation, we found that selecting 200 protocol validators for mainnet delegation would allow high enough delegation for a secure stake amount in the data pool, while still including as many validators as possible. Whereas if we had stayed with the original plan of distributing to all 2,500, there would have been way too small of a stake in the data pools.
Below is a graph that shows the exact activity of each Incentivized Testnet user. As shown, the top 2,500 ranked users were the most active, especially regarding Engineering-based tasks. It significantly increases in the 1–200 range.
Of course, we highly value all of the previous work and efforts our community has brought forward during KYVE’s Incentivized Testnet and will not let this situation stand in our way of rewarding those for their hard work.
Therefore, all 2,500 eligible validators will be rewarded a certain amount of $KYVE via airdrop in order to participate on mainnet. This way, even if they’re not 1 of the 200 selected for the mainnet delegation program, they can still participate via staking.
Please note that according to our Terms and Conditions, certain countries and regions are under sanction, and, therefore, cannot participate (for both airdrop and mainnet delegation). Therefore, prior to receiving the airdrop or mainnet delegation, one must complete their KYC.
Airdrop amount will follow the Korellia Leaderboard ranking, with the following distribution amounts:
Airdrop Distribution Schedule
In order to maintain a stable flow of rewards, we opted for a vesting-like distribution schedule. Therefore, each airdrop will be split evenly into four payouts, with one happening every three months.
Top 200 Validator Mainnet Delegation
As mentioned, in order to take part in the program and increase your chances of participating with a higher stake on mainnet via our delegation rewards, you must complete the application form.
Application Deadline
As soon as the proposal to create the first data pool on mainnet goes live for governance voting (May 31st), the first batch of Kaon validators that passed the evaluation and KYC will be chosen for the first round of delegation. Priority will follow the Incentivized Testnet Leaderboard ranking. You can check your rank on your user profile.
Delegation Details
Each of the 200 protocol validators selected will receive a one-time delegation of 40k $KYVE (8M $KYVE / 200 = 40k $KYVE). For the top 200 protocol validators, this delegation means giving them a higher stake to more easily claim an active mainnet slot. For the protocol, this delegation will allow for a high enough stake to secure the data pools while also promoting decentralization within the network.
For the first mainnet data pool, Cosmos Hub, 80 protocol validators will be selected from the applications, again, according to their evaluation and leaderboard ranking. Each data pool is set to have 50 active slots. We decided on selecting 80 protocol validators for the first pool to create a healthy amount of competition and give as many protocol validators a chance as possible without compromising security by having too little stake in the pool.
Those chosen will have one week (the time of the voting period) to spin up their mainnet protocol validator with a moniker, identity, and security contact in preparation for receiving their delegation.
**In case the protocol validator would like to update their wallet address to a more secure wallet for mainnet delegation, they can fill out this form to change their address.
For each new data pool after Cosmos Hub, around the governance voting time for pool creation, the next top 40 protocol validators who were not already part of the mainnet delegation program will be elected for the next round of mainnet delegation. This election process will continue until we have delegated to the 200 protocol validators (AKA, during the first 4 data pools on mainnet).
Our goal is to fill the available mainnet slots within every distribution. The team will continuously monitor the current validator set for slashes. If one validator meets the exit conditions, they will lose their delegation from the program. In this case, the team can decide either to redelegate to the next approved validator in the program or to keep the tokens undelegated until the evaluation.
The check for a redelegation will be done at least once a week and especially during the announcement of a new data pool. Also, rewards earned by the KYVE Foundation will be reallocated toward the growth of the ecosystem.
Exit Conditions
When protocol validators misbehave, this harms the overall protocol security and functionality. In order to incentivize good behavior, it’s imperative to have exit conditions in place, removing delegation from those that behave incorrectly.
Therefore, three single slash events (not the fault of the protocol) will lead to permanent removal from the candidate list. The remaining amount will either be redelegated to the next candidate in the list or to the KYVE Core Team validator.
If someone notifies us that they will leave, they have to leave the pool with the LeavePool transaction, then this person will not get banned from the candidate list. However, the slot will free up and be reallocated once the next evaluation takes place.
Delegation Distribution Schedule
To recap, there will be a maximum of 200 delegations. 80 for the first pool, and 40 for every additional pool afterward, until 200 is reached. Every user will receive an equal amount of 40k $KYVE as soon as their protocol validator is created on mainnet and the pool has been created.
If a protocol validator becomes inactive due to being pushed out and can never join a data pool again, we will send out a message (every 3 months) to their security contact and ask them to sign a transaction that clarifies if they want to continue or not.
Join KYVE Mainnet
If you’re eligible and interested, be sure to create your protocol validator on Kaon and fill out the form as soon as possible in order to join in before the first round of evaluations on May 31st!
A big thank you again to all who have participated in our Incentivized Testnet and followed KYVE along on its journey. We have come a long way, and are very excited to share this next major chapter of officially launching data pools on mainnet with you all!
About KYVE
KYVE Network is revolutionizing customized access to on- and off-chain data by providing fast and easy tooling for decentralized data validation, immutability, and retrieval. Its data lake archives and validates data in a decentralized way, making trustless data easily accessible via solutions like KYVE’s Data Pipeline.
The network is powered by decentralized uploaders and validators funded by $KYVE tokens and aims to operate as a DAO following our mainnet launch. This past year KYVE has gained significant support, currently backed by top VCs, including Hypersphere Ventures, Coinbase Ventures, Distributed Global, Mechanism Capital, CMS Holdings, IOSG Ventures, and blockchains such as Arweave, Avalanche, Solana, Interchain, and NEAR.
Join KYVE’s community: Twitter | Discord | Telegram
About The KYVE Foundation
The KYVE Foundation aims to support the development, adoption, and growth of KYVE and its ecosystem. By providing essential resources and KYVE’s trustless data-sourcing solutions, we are unleashing an unstoppable wave of innovation that is propelling the future of Web3 forward.
Our commitment to decentralization, security, and true validity is at the heart of everything we do. Join us in creating a brighter future, where trust and collaboration are the keys to unlocking a more equitable and sustainable world.
