What is a Validator on Fuse Network?

Fuse

December 9, 2022

6 min Read
Fuse Validator

The Fuse network is run by validator nodes hosted by network participants worldwide. ​Any person or entity holding the Fuse token can run a node that approves transactions in the network and receive rewards in Fuse tokens (FUSE).

The Fuse network allows entrepreneurs to easily plug payments into their products and onboard users to an application that lets them pay, transact and access financial services in their favorite currency. This requires computational power, not the kind living in a centralized storage facility. Instead, it’s provided by people like you and me. 

​Any entity or person holding enough FUSE can run a node that approves transactions in the network. The more communities and users conducting transactions, the more validators will earn as a reward for approving transactions. This allows the network to grow organically as validators are incentivized to participate, build, and onboard users into the Fuse Network. 

What does it mean to be a validator?

Validators run special software that holds a copy of the Fuse blockchain and validates transactions in the network. Every 5 seconds, the network groups the latest transactions broadcasted to the system, validates, and signs them so they can never be changed. 

Validators contribute their computer resources to maintain the network and need technical knowledge to host this kind of software. The validators receive a block reward for this work. Yearly inflation of 5% is distributed between all validators, and the block rewards update to accommodate this functionality. 

Validators are the guardians of a network and are in charge of not only maintaining it and keeping transactions moving but also steering it through the governance mechanism that allows any holder of the Fuse token to vote on important decisions and upgrades to the network in its development and resource allocation.

How to become a validator?

  • Minimum of 100K tokens staked or delegated. In a Delegated Proof of Stake blockchain like Fuse, it is required that all the validators have a staking requirement. Therefore, the stake of 100K Fuse tokens needs to be locked in a contract to be eligible to become a validator.

Who shouldn’t become a validator?

  • Non-technical users – Running a node requires technical background in blockchain and web hosting. It’s not very complicated but also not trivial or basic.
  • Uncomplicated FUSE holders – We are looking for validators who are invested in the future of the network and are looking to take an active role. This is what the Delegated Proof of Stake mechanism was born to do.

Who should become a validator?

Regular FUSE token holders can further involve themselves in the community by delegating their Fuse token to a validator to earn rewards. 

Becoming a validator is not an everyday activity and requires contributing computer resources and some technical knowledge to host specialist software. Other contributors and reasons to consider becoming a Fuse network validator are: 

  • Companies who build on the Fuse network – The open-source Fuse stack allows many companies to collaborate on the same code base.
  • Allowing any company interested in using the Fuse services and code to join as a stakeholder is a new innovative approach to collaboration and partnerships.
  • Any company that builds products on the network can own a piece of it and become a stakeholder.
  • Running a node in the process will allow the company to earn rewards and grow as the network grows.
  • The company can also use this open-source infrastructure to save costs for its development needs.
  • Operating a node gives reliable access to the network and participation in its governance and aligns all the different interests behind the operation of the network.
  • Third-party service providers – Many providers create and provide services across blockchains. Services like KYC, exchanges, credit score providers, lenders, etc
  • Any service provider can become a stakeholder in the network, and already today, we are seeing the potential of cross-blockchain transactions uniting business processes between different entities using cryptography and without middlemen.
  • Community operators on Fuse – Community operators are the foremost stakeholders in the network and can upgrade themselves to a validator and thus provide better access to their clients.

Getting started as a validator on Fuse Mainnet

Pre-requirements

To be a Fuse validator, you must meet the pre-requirements:

  • You know what it means to be a Fuse validator – How to become a validator
  • You have at least 100K FUSE tokens, or you will have an aggregated delegation of at least 100K FUSE tokens (you can purchase FUSE tokens on Uniswap).
  • You have always-on hardware that meets the pre-requisites – How to run network nodes

How to become a Fuse validator

To become a validator quickly, follow these steps:

Step 1: Download the `quickstart.sh` script and an `.env` example file:

mkdir fuse-validator

cd fuse-validator

wget -O quickstart.sh https://raw.githubusercontent.com/fuseio/fuse-network/master/scripts/quickstart.sh

chmod 777 quickstart.sh

wget -O .env https://raw.githubusercontent.com/fuseio/fuse-network/master/scripts/examples/.env.validator.example

Step 2: Update the `.env` file:

set “sudo” on `PERMISSION_PREFIX` if running docker/docker-compose requires root

(optional) set ‘VAL_NAME’ to display a custom name on health.fuse.io (cannot contain spaces)

Step 3: Run the script as a validator:

./quickstart.sh

After running the script successfully, you will see your address in the health site.

Step 5: Stake and/or delegate!

Stake

To stake FUSE tokens, all you should do is send your FUSE tokens to the Fuse Consensus contract address over the Fuse network from the validator address.

The Fuse Consensus contract address: 0x3014ca10b91cb3D0AD85fEf7A3Cb95BCAc9c0f79

The easiest way is to import your private key or key-store file to your favorite wallet (for example, Metamask), switch the network to Fuse, and send the FUSE tokens (native tokens) to the Consensus contract address.

You can find your key store (containing your private key) and the password for the created account in:

$HOME/fusenet/config/keys/FuseNetwork/UTC–xxxx

$HOME/fusenet/config/pass.pwd

Delegate

To delegate, just send the FUSE tokens from any address to the Consensus contract address with the data: 0x5c19a95c000000000000000000000000<address without 0x>.

Example:

For the address: 0xb8ce4a040e8aa33bbe2de62e92851b7d7afd52de

Use: 0x5c19a95c000000000000000000000000b8ce4a040e8aa33bbe2de62e92851b7d7afd52de as the data.

5c19a95c is for the delegate(address) function signature.

b8ce4a040e8aa33bbe2de62e92851b7d7afd52dein this example is an address you’re delegating to (without the 0x prefix)

Step 6: Wait for one cycle (approximately 48 hours).

Wait until the next cycle starts.

You can see that you are validating on the health and explorer sites.

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