Validation Reward

This is a reward feature for maintaining token value and contributing to network reliability by validating FiNANCiE Lightning. The reward is paid from the allocated community allotment of 42% of the FNCT issuance limit. The staker who performs this validation is called a "validator" and his/her reward is called a "validation reward.” Validators are selected by probability according to the amount of locked FNCT, and the selected one will proceed with the validating operation.

Selection of Validator and Delegation Reward

We expect that a marketing partner that will nurture the development of the token economy will be selected as the validator (currently in the process of selection). Stakers other than marketing partners become "delegators" who delegate to validators and receive a portion of the validation rewards through the validators. This is called "delegation rewards.”

Process of Validation

1. The validator sets how to distribute the validation reward between the validator and the delegator to a smart contract.

2. The staker selects his/her validator by comparing distribution ratios etc. Such a validator will be called a delegator.

3. The validator periodically inscribes a hash of the FiNANCiE Lightning logs to the smart contract.

4. Validators are probabilistically selected based on the total amount of FNCT that the validator and delegator are staking, and validation reward is paid in FNCT to such validator.

5. A portion of the validation reward is distributed as a delegation reward in accordance with the settled distribution ratio. The delegation reward is further distributed to each staker in accordance with the amount of staking by the delegator.

In the future, we are considering selecting stakers other than marketing partners as validators in order to make the system more autonomous and decentralized.