Validators get their revenue based on the uptime & staked amount

In VIRTUAL, the Validator Pools with each pool consisting of one Validator and several Stakers.

Revenue Distribution Based on Validator's Uptime

Validator's Uptime is the ratio of the number of validated proposals to the total number of proposals presented. This metric is crucial in determining the effectiveness and reliability of a Validator. The higher the Validator's Uptime, the greater the proportion of revenue allocated to that Validator's pool. This incentivizes Validators to maintain high performance and reliability.

Example:

• If Validator A has an Uptime of 90%, and Validator B has an Uptime of 10%, the revenue distribution reflects these percentages.

• In this scenario, a significantly larger portion of the revenue would be allocated to Validator A’s pool due to its higher Uptime, compared to Validator B’s pool.

Regarding the distribution of revenue within a Pool:

• Stakers' Share: The revenue allocated to a Pool is further distributed among the individual Stakers, including the Validators who have staked their tokens. Distribution is allocated based on the amount they have staked.

• Validator's Fee: From the Stakers' share of the profit, 10% is paid to the Validator of the Pool as a delegation fee.