What is a Staking Validator (Validator Vaults)?

Created by Divi Support, Modified on Wed, 11 Dec at 1:05 PM by Divi Support

What is a Staking Validator?

Being a Validator on the Divi Blockchain means actively participating in the peer-to-peer network by maintaining an always-on connection. Validators receive and share blockchain data, validate transactions, and ensure the integrity of the network. This foundational role is essential for maintaining decentralization and consensus.

A Staking Validator goes beyond these tasks by also producing blocks and minting DIVI coins. Unlike traditional proof-of-work systems, which often require specialized hardware and immense energy consumption, staking allows anyone with DIVI to participate meaningfully. This approach lowers barriers to entry and opens participation to a broader community, ensuring that the network remains decentralized and accessible.

Divi’s Proof of Stake model embraces the inclusivity envisioned in the early days of blockchain. When Satoshi Nakamoto released Bitcoin, the software empowered anyone to run a node and mine blocks. Over time, the need for more computational power concentrated mining into pools and specialized hardware, making it less accessible for everyday users. Divi’s staking model revives this accessibility by letting participants “put their coins to work” to secure the network, providing a fair and efficient alternative that promotes decentralization.

As a Staking Validator, you not only earn rewards but also contribute to a system that prioritizes decentralization, open participation, and the foundational ideals of blockchain technology.

How They Earn!

Participants earn rewards by maintaining the blockchain through producing blocks, validating transactions, and notarizing ledger data. Each block they produce is notarized and includes newly minted DIVI coins as part of the rewards. This process is facilitated by a coinbase transaction, similar to Bitcoin. However, Divi’s blockchain uses a modified Proof of Stake (PoS) miner, called a Divi Miner, which replaces energy-intensive mining with a multiplier system based on the amount of DIVI coins you own.

Anyone can participate using a standard computer or by deploying specialized Validator Vaults, which anchor the blockchain while earning rewards for their work.

Solo Hot Staking with Divi Desktop

For those opting for home-based staking with the Divi Desktop Application, the process is straightforward but requires individual oversight and optimization. Unlike Validator Vaults, running the desktop application requires:

A local computer running continuously with a stable internet connection.
The Divi Desktop Application is "unlocked for staking only" with your DIVI coins.

While solo staking offers accessibility, it requires careful management of resources and infrastructure to ensure reliable network participation.

New Feature: Cold Validator Vaults

Validator Vaults provide a secure and efficient way to participate in Divi's staking process. They combine the security of a cold wallet with the convenience of a hot wallet, ensuring your funds remain safe even if the validation node is compromised. This is achieved by separating staking funds from the validation node, allowing the funding wallet to remain completely offline—just as secure as a hardware or paper wallet.

Although both general stakers and Validator Vaults earn rewards through block production, Validator Vaults introduce key distinctions:

Network Support

General stakers are often nomadic, sometimes online and sometimes offline, relying on home-based setups that frequently depend on Wi-Fi, which can be prone to interference, instability, and downtime. Solo stakers are encouraged to use Ethernet connections where possible, ensuring greater stability and a better opportunity to reliably support the network. Validator Vaults, however, are typically deployed with enterprise-grade infrastructure, offering stable and consistent connectivity, making them robust anchors for the blockchain.

Governance and Future Upgrades

General stakers do not participate in future governance as their nomadic setups lack the consistency required for sustained peer-to-peer connectivity. Validator Vaults, in contrast, will play a central role in governance, both on-chain and off-chain. Furthermore, Vaults will have the ability to opt into supporting sidechains as the network evolves, providing additional opportunities to contribute to Divi’s ecosystem.

Earning and Block Production

Both general stakers and Validator Vaults act as peer-to-peer validators, competing to submit blocks and validate transactions in the mempool. The likelihood of producing blocks and earning rewards is influenced by the amount of DIVI staked, with larger amounts statistically increasing success due to weighted probabilities and multipliers.

Secondary Earning Opportunities for Vaults

Validator Vaults have an exclusive secondary earning mechanism by supporting future sidechains. This capability ensures Vaults can earn rewards not only from mainchain block production but also from their contributions to the expanding Divi ecosystem through sidechain participation.

Validator Vaults enhance security and simplify the staking process, making them more user-friendly. They represent a significant advancement in Divi’s evolution, offering a robust, resilient, and forward-compatible method for network support, governance, and additional earning opportunities.

Fairness and Weighted Systems

Divi’s staking process is not purely random. It employs a weighted system that ensures fairness, incorporating factors such as coin age to provide all participants—whether Staking Validators or Validator Vaults—a probabilistic opportunity to earn rewards over time. This ensures Divi’s network remains inclusive, with a focus on increasing participation and involvement for all users.

Earning Potential

Your earning potential depends on the total number of participants and the individual spendable coin amounts. Once you meet the minimum staking requirements:

You can begin validating and competing to produce blocks for the Divi Blockchain.
Newly received or moved coins will require a "warm-up" period of about one week before they are fully weighted for staking. However, coins with the required confirmations will begin staking immediately.
Mining opportunities are determined stochastically (randomized with fairness), weighted by your coin holdings.

Getting Started

Welcome to Divi!
The first step in your journey is downloading and installing the Divi Desktop Application.

Resources: