Nominated Proof of Stake (NPoS)
Last updated
Last updated
Nominated Proof-of-Stake (NPoS) is the advanced consensus mechanism that secures the Vine network and ensures efficient block production.
The system is based on Nominators and Validators, who back and secure the chain, respectively; the relationship between the two fosters a collaborative and decentralized network. Details below:
Active Roles in NPoS
Validators
Nominators
Opting Out ("Relaxing")
There are two key roles in maintaining and securing the network: Validators and Nominators.
Validators are responsible for producing new blocks, maintaining the network infrastructure, and ensuring security and finality of transactions.
Validators stake Vine Coin (VNE), the native token of Vine Blockchain, to guarantee proper conduct. If a validator violates the protocol, their stake (and that of their nominators) is slashed as a penalty. Conversely, consistent performance earns rewards, multiplying their stake.
Nominators are token holders who contribute to network security by backing validators with their stake. They can nominate up to 16 validators at a time, creating a pool of candidates they trust to perform reliably.
Nominators stake a portion of their VNE tokens to support validators. Once their chosen candidates are selected, they share in the rewards or penalties based on the validator's performance. Rewards are distributed proportionally to the amount staked.
Participants in the NPoS system can choose to temporarily step back:
Validators can opt out of candidacy for future elections.
Nominators can pause their participation as voters.
Validators play an important role in ensuring the security of a blockchain network and facilitating the creation of new blocks.
A "nominator" is a participant who stakes their own VNE coins and also selects and nominates a set of validators to participate in the consensus process.
