Validator Restaking and Job Provision

1. Introduction

This guide will help you understand the concept of restaking, the various roles available, and how to maximize their earnings through active participation in the Tangle network.

Restaking is a unique feature of the Tangle network that allows validators to commit their staked Tangle Native Tokens (TNT) to additional roles beyond the initial validation responsibilities. By restaking, validators can contribute to the network's security, efficiency, and growth while earning rewards for their efforts.

2. Understanding Restaking on Tangle

What is Restaking?

Restaking is the process of allocating a portion of a validator's staked TNT to specific roles within the Tangle network. These roles include Threshold Signature Scheme (TSS) and Zero-Knowledge Proofs as a Service (ZkSaaS) roles, which are crucial for maintaining the network's integrity and supporting advanced features like privacy-preserving transactions.

By restaking, validators demonstrate their long-term commitment to the network and align their incentives with its performance and growth. Restaking offers flexibility and additional opportunities for validators to earn rewards while contributing to the network's overall health.

3. Validator Roles and Responsibilities

By opting into various roles through restaking, validators can contribute to different aspects of the network.

TSS Roles

Threshold Signature Scheme (TSS) roles involve participating in collective signing processes to secure multi-signature transactions and contracts. Validators can opt into the following TSS roles:

DfnsCGGMP21Secp256k1
DfnsCGGMP21Secp256r1
DfnsCGGMP21Stark
ZcashFrostP256
ZcashFrostP384
ZcashFrostSecp256k1
ZcashFrostEd25519
ZcashFrostEd448
ZcashFrostRistretto255

Validators in TSS roles are responsible for collaborating with other validators to generate and manage shared keys, ensuring the security and integrity of multi-signature operations.

ZkSaaS Roles

Zero-Knowledge Proofs as a Service (ZkSaaS) roles require validators to provide computational resources for generating zero-knowledge proofs, enabling private and scalable transactions on the Tangle Blockchain. The main ZkSaaS role is:

ZkSaaSGroth16

Validators in ZkSaaS roles contribute their computing power to generate zero-knowledge proofs, facilitating privacy-preserving transactions and enhancing the network's scalability.

Responsibilities for Each Role

Regardless of the specific role, all validators are expected to:

Maintain high availability and uptime to ensure the network's smooth operation
Actively participate in the consensus mechanism and fulfill their validation duties
Perform role-specific tasks, such as collaborating in TSS or generating zero-knowledge proofs
Stay updated with network upgrades and adhere to best practices for security and performance

By fulfilling these responsibilities, validators contribute to the overall health, security, and efficiency of the Tangle Blockchain.

4. Restaking Mechanisms

Maximum Restake Amount

Currently, validators can restake up to 50% of their initially staked TNT for participating in additional roles. This limit ensures a balance between the network's security needs and the flexibility for validators to engage in various functions.

Independent vs. Shared Restaking

Validators have two options when it comes to restaking:

Independent Restaking: Validators can allocate specific amounts of TNT to different roles, tailoring their risk and reward distribution according to their preferences and strategies. This approach allows for more granular control over the allocation of staked TNT.
Shared Restaking: Validators can choose to distribute a single restake amount across multiple roles. This simplifies stake management and potentially diversifies risk by participating in various roles simultaneously.

Process for Opting into Roles and Restaking TNT

To opt into roles and restake TNT, validators should follow these steps:

Evaluate Roles: Carefully consider the available TSS and ZkSaaS roles and assess their technological requirements, potential rewards, and risks.
Restaking Decision: Decide between independent and shared restaking based on your preferred strategy and risk tolerance.
Restake Execution: Allocate TNT to the selected roles through the Tangle Blockchain's interface using the appropriate dispatchable calls (detailed in Section 7).

Capital Efficiency and Reward Optimization

Restaking allows validators to earn rewards from multiple roles without requiring additional capital. This mechanism encourages efficient stake allocation and active participation in the network. By strategically allocating their staked TNT to various roles, validators can optimize their potential rewards while contributing to the network's security and functionality.

6. Risks and Mitigation Strategies

While restaking offers validators the opportunity to earn additional rewards, it is essential to be aware of the potential risks involved.

Slashing Risks

Validators who fail to fulfill their responsibilities or engage in malicious behavior may be subject to slashing penalties. Slashing involves the loss of a portion of the validator's staked and restaked TNT. To mitigate slashing risks, validators should:

Maintain high availability and uptime
Adhere to the network's rules and protocols
Regularly monitor their validator nodes and address any issues promptly

Centralization Risks

If a significant portion of the network's staked TNT is concentrated among a few validators, it could lead to centralization risks. To mitigate these risks, the Tangle Blockchain has implemented a maximum restake amount limit and encourages a diverse set of validators to participate in the network.

Yield Risks

The rewards earned through restaking may vary depending on factors such as network activity, total staked TNT, and the number of validators participating in each role. Validators should be aware of the potential fluctuations in rewards and make informed decisions when allocating their staked TNT to different roles.

7. Dispatchable Calls and Validator Management

The Tangle Blockchain provides a set of dispatchable calls for validators to manage their profiles, opt into roles, and perform various actions related to restaking and job provision.

Dispatchable Calls for Validators

create_profile: Allows validators to create a profile, specifying the roles they want to participate in and the restaking amounts for each role. Profiles can be shared or independent, and the total restaking amount should meet minimum requirements.
update_profile: Enables validators to update their profiles, adjusting restaking amounts for roles. The update operation ensures that the new restaking amounts meet the minimum requirements and do not exceed the maximum allowed.
delete_profile: Allows validators to submit a request to delete their profile, initiating the process to exit from all services. This operation fails if there are pending jobs associated with the roles.
chill: Enables validators to declare no desire to validate or nominate, effectively opting out of all roles and services.
unbond_funds: Allows validators to unbond funds. These operations are only allowed when the validator has no active roles.
withdraw_unbonded: Enables validators to withdraw unbonded funds after a certain period. These operations are only allowed when the validator has no active roles.

Best Practices for Managing Validator Profiles

To effectively manage their profiles and optimize their participation in the Tangle Blockchain, validators should:

Regularly review and adjust TNT allocations to optimize for reward potential and adhere to network updates.
Monitor the network's performance and adapt their restaking strategies accordingly.
Keep their validator nodes updated with the latest software versions and security patches.
Participate in the Tangle community and stay informed about upcoming changes and improvements to the network.

By following these best practices, validators can ensure a smooth and profitable experience while contributing to the overall health and growth of the Tangle Blockchain.

8. Conclusion

Restaking and job provision on the Tangle Blockchain offer validators exciting opportunities to earn additional rewards, contribute to the network's security and efficiency, and support advanced features like privacy-preserving transactions. By understanding the various roles, restaking mechanisms, and economic incentives, validators can make informed decisions and optimize their participation in the network.

As a validator on the Tangle Blockchain, you play a crucial role in the network's success and growth. By actively participating in restaking and job provision, you can maximize your rewards, contribute to the network's security and functionality, and be a part of the exciting journey towards a more efficient, privacy-focused, and decentralized future.

Rewards Quickstart