Klever Mainnet Migration for Validators

As all validators are aware we have been running the TestNet for the following reasons:

  • For validators to get ready and familiarize themselves with the Klever node.
  • For the Klever team to work out any last bugs.
  • For the Klever team to stress test the network.

With the help of the community Validators, we have been able to test and work out several bugs.

We however need to start preparing for KLV Token migration and the network bootstrapping. Currently, Klever has a token known as KLV which is a TRC20 token. We need to migrate the KLV TRC20 token to KleverChain. In order to do this, we have offered 100% staking APR for 3 months, this allows Klever token holders to unstake from current staking contracts and restake on the Mainnet migration staking contracts.

More details can be found in our announcement.

In preparation for Mainnet, Validators must, however, familiarize themselves with the steps they need to take.

KLV is required for your validator node

Each Validator will require KLV for each node they wish to run. 

Below is the KLV required per node

  • Each validator requires 1 500 000 KLV to be locked into the node 
  • Each validator requires 100 000 KLV to register as a validator
  • Each validator will need some extra KLV to cover transactions

We, therefore, recommend a minimum of 1 601 000 KLV per validator. Hopefully, you have been a long-time Klever supporter and have your stash of KLV ready. If not, this KLV can be bought now on Klever Wallet, Klever Exchange, Bittrex, Kucoin, etc. Can find more detail on Coingecko around our Klever token.

KLV Migration is required for your node

Each Validator can stake their KLV in the Mainnet migration staking contract as mentioned in the announcement. The staking migration for the Klever community will end approximately around 26.07.2022. KleverChain should be fully running and secure before this date.

We estimate the following:

  • KleverChain to launch around 1 July 2022 with 21 guardian nodes run by Klever.
  • KleverChain will then allow Validators to unstake early, we estimate around 11th July 2022.
  • After unstaking early, the validators will receive the KLV coins already migrated and deposited in a wallet provided by the validator on the KleverChain. The validator can then use these native KLV coins to register their validators.
  • By 26.07.2022 when Klever end-users start unstaking we would like all Validators to be ready to receive community delegations.
  • From 26.07.2022 if the validator receives enough delegations to have over 10 Million KLV delegations they will be elected.

We are aiming to have over 50 validators and grow steadily to 100 validators. 

KLV Validator Rewards

Validators earn block confirmation rewards when transactions are confirmed by their validator node. KleverChain makes use of Practical Byzantine Fault Tolerance (PBFT), due to this  60% of the rewards goes to proposers and 40% to the signers. The block reward flowback is set initially to 50% of the fee paid by users. The additional 50% of fees will be burned to control inflation and maintain healthy network interoperability. An additional amount of 15 KLV will be added to the block rewards. Both the fees and the block rewards will be distributed proportionally to the staked amount of each wallet. All staked amounts bound to validators (eligible or not) will participate in a rewards pool of 500,000 KLV daily, proportional to the staked amount of each wallet.

Validators to note the following:

  • Validators can set a commission fee for the delegated-staking on their node.
  • All rewards are added to a claimable balance in the wallet and must be claimed by the wallet owner to be made available. This applies to validator and delegator rewards
  • A portion of the rewards is linked to successful block production. 15KLV per produced block
  • All parameters can be adjusted by on-chain proposals
  • 50% of the fees are burnt and 50% are distributed to the validators that produced blocks

The validator rewards are based on several factors as seen above. Below are two simulations with estimations of expected validator node rewards under specific network conditions. The estimations are estimates and to provide some insight into the possible validator rewards

Block rewards depend on consensus participation, which is a random selection among all eligible validators. Meaning the election and block rewards mining shown in the simulations below are based on selection change over a large time window. The below are estimates to provide insights into node rewards, they are not guaranteed and may fluctuate based on network conditions and network parameters, 

Simulation A

We expect node rewards under these conditions

  • 50 validators
  • 10 000 KLV Fee burn per day
  • 500 000 000 KLV staked on the network
  • 10% of daily chance to be elected and produce blocks. Validator is rotated into an election at a minimum of 10%
Node Staking SimulationRewards Per Day
StakedStaking PoolBlocksFeesTotal KLV EarnedAPR

Simulation B

We expect node rewards under these conditions

  • 100 validators
  • 10 000 KLV Fee burn per day
  • 500 000 000 KLV staked on the network
  • 10% of daily chance to be elected and produce blocks. Validator is rotated into an election at a minimum of 10%
Node Staking SimulationRewards Per Day
StakedStaking PoolBlocksFeesTotal KLV EarnedAPR

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Disclaimer: This article is for informational purposes only. The information does not constitute an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Klever.Finance does not provide financial, tax, legal, or accounting advice. There is no responsibility on the part of the company or the author for any loss or damage arising from or related to the use of or reliance on any content, goods or services mentioned in this article.

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