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How NPoS Works

Vine does proof-of-stake (PoS) differently.

Unlike traditional PoS models where staking power might be concentrated among a few entities, Vine’s NPoS grants equal authority to elected validators. The validator election process is integral to the system.

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Validator Election Process

The election process covers:

  • How Validators are Elected

  • Reward Distribution

  • Slashing & Penalties

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How Validators Are Elected

  • Nominators stake their Vine Coin (VNE) to support trusted validator candidates.

  • Validators are selected based on the total stake they receive—the more nominations and stake backing a validator, the higher the likelihood of election.

  • Elections occur at the end of each era (typically every hour), ensuring that the validator set is dynamic and can change over time.

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Reward Distribution

At the end of each era, staking rewards are distributed to validators and their supporting nominators. Rewards are allocated equally among all active validators, regardless of individual stake size. The validator’s commission fee is deducted first, and the remaining rewards are proportionally distributed among nominators based on their staked amount.

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Example Reward Distribution Calculation

Let’s assume:

  • Total rewards per era: 200 VNE

  • Era duration: 1 hour

  • Validator commission fee: 10% (20 VNE)

  • Total stake backing the validator: 200 VNE

Nominator Stakes:

  • A: 20 VNE

  • B: 10 VNE

  • C: 40 VNE

  • D: 60 VNE

  • E: 70 VNE

Reward Calculation:

  • Total rewards after commission deduction: 180 VNE

  • Each nominator receives a share based on their stake percentage:

    • A: (20 / 200) × 180 = 18 VNE

    • B: (10 / 200) × 180 = 9 VNE

    • C: (40 / 200) × 180 = 36 VNE

    • D: (60 / 200) × 180 = 54 VNE

    • E: (70 / 200) × 180 = 63 VNE

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Slashing & Penalties

Vine Blockchain enforces a slashing mechanism to maintain network integrity. Validators and their nominators can lose a portion of their staked VNE if:

  • A validator fails to act properly (e.g., goes offline or produces invalid blocks).

  • A validator engages in malicious activity (e.g., double-signing blocks).

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How Slashing Works

  • The penalty amount is deducted from the validator’s stake as well as the proportional stake of nominators backing them.

  • The ‘payout_stakers’ call must be made before an era becomes too old to claim staking rewards.

  • Any network participant can execute this function, ensuring both validators and nominators receive their due rewards or penalties.

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