How Does a validator'S'active Participation' Benefit Them Financially in PoA? ⎊ Path

How Does a Validator’s ‘Active Participation’ Benefit Them Financially in PoA?

A validator's active participation, meaning being online and correctly signing blocks when selected, directly benefits them financially by earning them the block rewards and transaction fees. Failure to participate when selected can result in missed rewards or even a small penalty (slashing), which is a direct financial loss.

Therefore, continuous, correct participation is essential to maximize their return on investment.

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Glossar

Validator

Role ⎊ A validator is a critical network participant in a Proof-of-Stake blockchain responsible for proposing, verifying, and attesting to new blocks of transactions to maintain consensus and secure the distributed ledger.

How Does a validator’S’active Participation’ Benefit Them Financially in PoA?