Staking is a fundamental component of maintaining the security and performance of the REI Network. In this article, we will introduce the staking rules of the REI Network and the rewards for REI Network validators.

All About Staking

REI Network allows users to stake or delegate their tokens to specific validation validators on the network. The staking mechanism behind it can reward users and incentivize validators to provide higher performance, thereby ensuring the network’s security.

Validators are a primary component of the REI Network, serving as the distributed ledger of the blockchain, securely handling transactions, storing data, and executing consensus to validate all operations on the network.

As an open system, anyone can apply to become a validator in the REI Network, essentially serving as the “reserve force” of validators.

Requirements for Joining as a validator

To lower the barriers and difficulties for community participation in decentralized governance, joining as REI Network validators doesn’t require powerful hardware or a massive token stake.

Minimum hardware requirements:

• RAM: 16GB
• CPU: 4-core
• Storage: 500GB SSD
• Bandwidth: 10Mb/s

Recommended hardware standards:

• RAM: 32GB
• CPU: 8-core
• Storage: 1TB SSD
• Bandwidth: Unlimited

Ordinary users only need to stake 100,000 $REI and possess the servers to run validators, along with validator operation technical personnel, to become eligible validator candidates. The top 21 validators, ranked by the number of votes, have the right to package blocks and earn rewards!

If individual validators don’t have enough tokens, they can stake their votes with validators that offer higher profit-sharing ratios.

Incentive Performance — How Much Can Validators Earn by Participating in Block Production?

REI Network uses Delegated Proof of Stake (DPoS) to secure and operate the network. This model allows token holders to stake their $REI with validators, where the validator’s token proportion staked represents their voting power on the network. The more staked, the more influence a validator has in network operations.

As processors of transactions and enforcers of consensus, validators earn rewards based on the gas fees collected. Additionally, based on community voting, the REI Network Foundation allocates 50 million tokens for validator rewards, released over five years, meaning the foundation releases 10 million $REI tokens annually for rewarding validators. This incentive is also distributed based on the staking proportion.

The most efficient validators can process more transactions, promoting overall network efficiency and earning greater rewards for their stakes. Poor-performing validators handle fewer transactions, resulting in smaller rewards for both themselves and their stakers. Validators ranking lower than the top 21 in staked votes lose their block-producing rights and, consequently, any earnings. This token economic model ensures that only the best validators come online to support the network.

User Rights

Staking allows REI users to play an active role in supporting the network. When users stake their $REI with a specific validator, they help that validator run and earn a proportionate reward based on their stake.

Apart from earning rewards, users reinforce the validator’s incentive model. If users stake their $REI with malicious, inactive, or non-producing validators, they risk not receiving rewards during the staking period and might even face penalties or being “jailed.” A reduction in user stakes helps supervise vibrant and responsible validators.

Well-performing validators can earn more rewards for their staked users, motivating users to increase their stakes and encouraging others to join. Furthermore, the REI Network Foundation provides additional validator incentives based on a validator’s contributions, serving as the “prime mover” for the development of the REI Network.

As an example, the REI Fans validator has made significant contributions to the promotion and development of the REI Network’s Chinese community. They encourage their followers to support the development of the REI Network by staking, earning an additional 5 million votes from the foundation and an extra 300,000 $REI annually. This demonstrates how brands and communities can actively participate in the REI Network’s validators.

The secure and stable operation of the REI Network relies on the support of validators and active participation from the community. It depends on many inputs based on the incentive model to maintain network health and provide an exciting high-performance experience for everyone.

The Rewards of Being A Validator on REI Network was originally published in REI Network Project on Medium, where people are continuing the conversation by highlighting and responding to this story.