This article was first published on Zilliqa — Official Blog - Medium
The launch of the seed node staking had been much anticipated by our global community of over 150,000 Zilliqans. Therefore, it was not much of a surprise to see a tremendous participation following the Phase I launch of non-custodial seed node staking on October 14, 2020. Within a matter of hours, over a billion ZILs were staked in the contract.
Seed Node Staking Background
For those who are unfamiliar with the underlying concept behind seed nodes, these are Infura-like (on Ethereum) nodes that store transaction history of the Zilliqa blockchain. They also serve as an entry-point to the network, allowing users and dApps to send transactions. The goal of the seed node staking project was to open up an incentivised network of nodes providing the service.
The seed node staking design was simple. Seed nodes would get 40% of the block rewards as an incentive for their service. In order to become a seed node, the node operator must have at least 10 million ZIL staked with it. The reward would be distributed among the operators in proportion to their stake and the quality of their service (to be determined by a verifier). Any stake delegated by a token holder with a given operator would count in the 10 million ZILs. In other words, the operators were allowed to seek stake from ZIL holders.
Seed node staking programme was launched in two phases: Phase 0 being custodial, where delegators had to send their stake to an address controlled by the operator while in Phase 1, a non-custodial staking mechanism was introduced via a smart contract. Delegators could now directly deposit their stake in the contract. Phase 1 staking was launched on October 14, 2020.
October 14–16, 2020
After the launch on October 14, 2020, the staking contract distributed its first reward to all ...
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Zilliqa — Official Blog - Medium