Validator Rewards on NovaNet

Configuring Validator Rewards on NovaNet

Introduction

NovaNet utilizes Quantum Delegated Proof-of-Stake (Q-DPoS) to select validators who secure the network and validate transactions. Validators earn rewards based on:

• Staking amount (NOVA tokens)
• Network participation and uptime
• Block validation performance
• AI-assisted fairness adjustments

This guide details how to:

• Configure validator rewards
• Adjust staking parameters
• Set up automatic reward distribution
• Optimize validator income using AI-driven scaling

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1. Understanding NovaNet Validator Rewards

NovaNet distributes block rewards to active validators using a dynamic reward model, where high-performance validators earn more.

Validators earn rewards based on:

• Base Block Reward (BBR) – The fixed NOVA reward per block.
• Validator Staking Weight (VSW) – Staking impact on reward distribution.
• Network Performance Multiplier (NPM) – AI-driven adjustment based on uptime, response time, and fairness.

The reward formula is:

$$R_v = BBR \times VSW \times NPM$$

where:

• $$R_v$$ = Total validator reward
• $$BBR$$ = Base block reward (in NOVA tokens)
• $$VSW$$ = Staking weight of validator
• $$NPM$$ = AI-based performance multiplier

• This ensures fair distribution and prevents centralization risks.

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2. Setting Up Validator Rewards

Step 1: Configure Validator Reward Parameters

Open the NovaNet configuration file:

nano ~/.novanet/config.toml

Modify the following parameters:

[validator]
stake_min = 1000     # Minimum NOVA stake to earn rewards
reward_rate = 0.08   # 8% annualized staking reward
slashing_penalty = 0.02  # 2% penalty for downtime

• Validators must stake at least 1,000 NOVA tokens to participate.
• Rewards are dynamically adjusted based on validator activity.

Save and exit (CTRL + X, Y, ENTER).

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3. Enabling AI-Driven Reward Optimization

NovaNet uses AI-powered governance to optimize validator rewards, preventing stake dominance and ensuring fair validator distribution.

To enable AI-based scaling:

novanet-cli enable-ai-rewards

• Reduces rewards for inactive validators
• Increases rewards for high-uptime validators
• Balances staking distribution to prevent monopolization

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4. Setting Up Automatic Reward Distribution

Validators must distribute earned rewards to delegators. To enable auto-rewards:

novanet-cli set-reward-distribution --percentage 90

• 90% of earned rewards will be automatically distributed to stakers
• The validator keeps 10% as a commission

Adjusting Reward Commission

To modify the commission percentage:

novanet-cli set-commission --percentage 15

• This sets validator commission to 15% of block rewards.
• Validators with lower commission rates may attract more delegators.

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5. Monitoring Validator Rewards

To check current validator earnings:

novanet-cli validator-rewards

Example output:

Validator Address: NOVA1x3y5a8...
Total Earned Rewards: 5,670 NOVA
Commission Rate: 10%
Delegator Distribution: 90%
Next Payout: 12 hours

• Validators can track rewards in real-time.

To withdraw rewards manually:

novanet-cli withdraw-rewards

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6. Slashing & Penalties for Low Uptime

NovaNet penalizes validators who:

❌ Go offline for extended periods
❌ Fail to validate transactions
❌ Engage in malicious activity

Penalties are calculated as:

$$P_s = R_v \times Slashing Penalty$$

where:

• $$P_s$$ = Slashing penalty
• $$R_v$$ = Earned validator reward
• Slashing Penalty = 2% (default)

If a validator's uptime drops below 90%, they receive a reduced reward. Below 70% uptime, their stake may be slashed.

To check uptime:

novanet-cli validator-status

Example output:

Validator: NOVA1x3y5a8...
Uptime: 94.6%
Slashing Risk: None

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7. Staking Rewards for Delegators

Validators share rewards with delegators who stake their NOVA tokens.

To delegate NOVA:

novanet-cli stake --amount 500 --validator NOVA1x3y5a8...

• Delegators receive passive rewards based on validator performance.
• Higher-staked validators distribute larger rewards.

To check staking rewards:

novanet-cli staking-rewards

Example output:

Delegator Address: NOVA1y6z8d9...
Staked Amount: 500 NOVA
Earnings: 2.5 NOVA/day
Next Payout: 24 hours

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8. Running NovaNet Validator as a Systemd Service

To ensure continuous validator operation, configure NovaNet as a systemd service:

sudo nano /etc/systemd/system/novanet-validator.service

Paste the following:

[Unit]
Description=NovaNet Validator Node
After=network.target

[Service]
User=$USER
ExecStart=/usr/local/bin/novanet-cli start --validator
Restart=always
RestartSec=5

[Install]
WantedBy=multi-user.target

Save and exit (CTRL + X, Y, ENTER).
Enable the service:

sudo systemctl daemon-reload
sudo systemctl enable novanet-validator
sudo systemctl start novanet-validator

To check logs:

journalctl -u novanet-validator -f

✔ Your validator will restart automatically on system reboot.

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9. Summary: Best Practices for NovaNet Validators

• Maintain High Uptime: Ensure at least 95% uptime to avoid penalties.
• Optimize Commission Rate: Lower commissions may attract more delegators.
• Stake More NOVA: Higher stakes increase validator ranking and rewards.
• Use AI-Based Scaling: Enables fair validator selection and dynamic rewards.
• Monitor Performance Regularly: Use novanet-cli status to track performance.

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10. Related Links

🔗 NovaNet Whitepaper
🔗 Quantum Delegated Proof-of-Stake (Q-DPoS)
🔗 Quantum-Secure Smart Contracts
🔗 Quantum-Assisted Virtual Machine (QAVM)

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11. How to Contribute

NovaNet’s Validator Reward System is open-source, and we welcome contributions! You can help by:

• Forking the repository and submitting pull requests.
• Improving documentation and updating validator models.
• Providing research on AI-driven staking rewards.

Start contributing: GitHub Repository

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📢 Join the NovaNet Community!
💬 Discord: Join Discussion
📢 Twitter: @NovaNet_Official
👨‍💻 Telegram: Community Chat

NovaNet’s AI-powered validator rewards ensure fair, scalable, and decentralized blockchain security!