Decentralized, Independent Governance Model
In this article, we will delve into the decentralized, independent governance model employed by Metal Blockchain.
In this series, we will be taking an in-depth look at the various components and features of the Metal Blockchain. We will explain the Layer 0 concept, explore the history of consensus mechanisms and why the Metal Blockchain employs Avalanche protocols as the latest advancement in consensus technology.
We’ll also take an in-depth look at the flow of a single blockchain on the Metal Blockchain, the underlying components, such as the Virtual Machine, Subnets, and the $METAL token, including its tokenomics, fee burns, fee schedule, and staking rewards.
This series aims to provide a comprehensive understanding of the Metal Blockchain for both experienced and new users. Join us as we delve into the technical details and discover the unique advantages of the Metal Blockchain.
In the fifth article of our deep dive series, we will delve into the decentralized, independent governance model employed by Metal Blockchain and the three key entities it encompasses: Validators, Delegators, and the Metal Foundation.
Decentralized, Independent Governance Model
Metal Blockchain employs a decentralized governance model that involves three essential entities: Validators, Delegators, and the Metal Foundation, which we will describe in detail below.
Delegators entrust their staked tokens to validators, enabling the validators to participate in the consensus process and process transactions on their behalf.
The governance of staker fees, transaction costs, and emission rate is governed by METAL, and can be decided upon by the network.
The Metal Foundation
The Metal Foundation, also known as "The Foundation", is an active member of the Metal Blockchain community, both directly and indirectly, through its grant, support, and other initiatives. The Metal Foundation contributes to the ongoing development, implementation, and maintenance of the Metal Blockchain and its community by supporting the following, among other things:
Developing and implementing different types of software, such as smart contracts, dApps, subnets, APIs, utilities, upgrades, bridges to other blockchains, and wallet software, and assisting others in doing the same.
Staking METAL tokens and operating nodes/validators to help secure the Metal Blockchain.
Creating written, video, and other content on websites, various social media platforms, and elsewhere to educate and engage with the community.
Serving as a resource to the community in various ways to support its growth and development
The Metal Foundation is composed of top validators on the network and operates with an open governance system that allows all METAL holders to make proposals and vote. The Foundation conducts its meetings in a transparent manner, with all sessions accessible to the public for listening and viewing. Furthermore, the Foundation serves as the voice of the community and the open-source builders working on the ecosystem, providing funding and support for community-driven initiatives. The Foundation is always composed of an odd number of members, not exceeding five at any given time, and members can be added or removed through internal Foundation votes or external community votes.
Validators are the heart of the Metal Blockchain ecosystem. Validators are independent organizations that run the open-source MetalGo software to create new blocks/vertices, and process transactions. To achieve consensus, validators repeatedly sample each other. The probability that a given validator is sampled is proportional to its stake.
The primary job of a validator is to allocate computational resources to validate transactions. However, they can also play additional roles in the ecosystem. They can for example serve as local resources to developers and users in their respective communities or offer additional services.
To participate as a validator on the Metal Blockchain, a minimum stake of 2,000 METAL is required, with a staking duration ranging from 14 days to a maximum of 1 year (365 days).
To ensure network decentralization, each validator has a maximum weight that includes their stake as well as the stake delegated to them. The maximum weight is determined as the lower value between 3 million METAL tokens or 5 times the amount staked by the validator.
This weight limitation prevents validators from creating multiple rogue nodes that could act as delegators and potentially defraud the system through a Sybil attack. For instance, if a user stakes 2,000 METAL to become a validator, they can only be delegated up to 8,000 METAL.
Validators are required to maintain a minimum of 80% uptime during the staking period to be eligible for staking rewards. A validator’s uptime directly affects the rewards for both the validator and the delegators. If a validator fails to maintain at least 80% uptime during the staking period, neither the validator nor the delegators will receive rewards. Uptime refers to the percentage of time that a validator's node is operational and actively participating in the network.
In addition to collecting rewards, validators can set their own delegation fee that they charge to delegators for their services. The minimum fee allowed is 2%.
These measures ensure that the Metal Blockchain remains secure, decentralized, and incentivizes validators to maintain high uptime and provide reliable services to the network.
Learn how to become a validator here.
Delegators on the Metal Blockchain are individuals who prefer to stake their METAL tokens while maintaining a relatively passive role. They trust an existing validator node by delegating their staked tokens to them.
In return for their support, delegators are rewarded with incentives for their participation in securing the network. This allows users to actively contribute to the ecosystem while entrusting the operational responsibilities to trusted validators, making it a convenient option for those who wish to participate in staking without actively managing their own validator node.
To become a delegator in the Metal Blockchain, a user must stake a minimum of 25 METAL tokens. Just like validators, these staked tokens must be locked for a minimum of 2 weeks and a maximum of 1 year, ensuring commitment and participation in the network.
It's important to note that delegating METAL tokens does not put them at risk, as validators cannot spend the staked METAL tokens. At the end of the locking period, the user will receive their original staked amount along with staking rewards.
It's crucial to carefully choose a validator in the Metal Blockchain ecosystem, as their uptime directly affects the rewards for both the validator and the delegators. If a validator fails to maintain at least 80% uptime during the staking period, neither the validator nor the delegators will receive rewards.
Uptime refers to the percentage of time that a validator's node is operational and actively participating in the network.
Rewards earned by validators are distributed back to delegators proportionally based on the number of staked tokens.
Validators may charge a delegation fee to cover the increased effort they put into managing delegations. This delegation fee can be set by validators, with a minimum fee of 2%. The delegation fee is an essential mechanism to incentivize and compensate validators for their services while ensuring fair participation and rewards for delegators in the Metal Blockchain ecosystem.
Learn how to delegate here.
In the following article, we will give an overview of the $METAL token, including its tokenomics, fee burns, fee schedule, and staking rewards.