TL;DR RChain Cooperative is selling RHOC to committed validators in order to secure the network
When Satoshi Natamoko invented bitcoin, he presented one of the first practical solutions to the byzantine generals problem. In bitcoin, a group of people called “miners” must coordinate and agree on a common strategy in the face of misinformation and adversity. Satoshi deployed an algorithm called proof of work to help solve these problems, which has some downsides. For example, earlier in 2018 the bitcoin network was consuming the same amount of electricity as the country of Ireland. This is not sustainable.
One alternative to proof of work is proof of stake. RChain board member Vlad Zamfir first proposed a version of proof of stake called Casper in mid 2015 that has since gained widespread industry interest. Unlike bitcoin’s “miners,” Casper has “validators”. Validators are responsible for checking that transactions in the network are correct, and for checking each other’s behavior. Every validator must lock up some amount of money in order to become a validator. If any validator tries to cheat or fails to do their job, other validators will detect it, and money can be taken away as a penalty.
Casper is a key enabler in allowing RChain to scale, but it will be critical that we have enough validators to actually secure the network. RChain’s Casper uses pure proof of stake in which security increases with the number of independent validators and the total value of staked tokens. Systems that deploy delegated proof of stake algorithms attempt to achieve security by sacrificing decentralization, using only a small number of elected delegates who validate. RChain will need many validators with real skin in the game to be secure and decentralized.
To ensure that RChain has enough validators at launch, the Cooperative has 80 million RHOC for purchase by validators willing to stake the network. To make the network as secure as possible, we want 1700 validating nodes within the first year of launch.
These RHOC will have a minimum price of $0.55 for validator agreements. If the spot price goes above that price, a discount will be offered.
All validators must be members of the co-op, go through a KYC process, and sign a validator agreement with the co-op.
If you or your company would like to take part in this program, you can do so by clicking on the link below and someone will reach out within 48 hours.
What is the minimum and maximum amount of RHOC I can buy?
The minimum purchase: $1,500 and the maximum: $1,000,000*
What will the discounts be if the spot price is above $0.55?
$1,500 – $250,000 = 18% off spot
$250,001 – $999,999 = 21% off spot
$1,000,000+ = 24%
Will existing token holders who agree to validator terms be compensated?
Yes, existing holders will receive the same benefit if they agree to become validators. Existing holders will end up with the same number of tokens as if they had used the dollar value of their RHOC in the validator sale.
This applies only if the spot price is above $0.55.
Do all validators need to sign an agreement?
No, only validators that wish to participate in this sale will need to sign the validator agreement.
What kinds of payment will the Co-op accept?
Payment is accepted in USD, ETH, and BTC.
What does the full process look like?
- Register your interest and someone from our team will contact you
- Become a Co-op member or prove your existing membership
- To prove your membership, you will be asked to provide your Discord ID
- New members pay a $20 fee and can register on our website
- Provide the Co-op with an acceptable hardware provisioning and maintenance plan
- Provide your own
- Use an approved vendor
- Know Your Customer
- Valid government-issued proof of identity documents (i.e. passport)
- For US citizens we require accredited investor status
- Everyone will also go through a OFAC check
- Signed validator agreement
- All RHOC must be locked until mainnet launch
- RHOC will be replaced by REV at mainnet launch
- All REV must be staked for at least 1 year
See the legal docs in https://github.com/rchain/legaldocs/tree/master/validator-sale
What are the main duties of a node validator?
- Participating in the testnet from September through March 2019**
- Bonding REV for a period of time
- Complying with RChain and namespace validation requirements
- Maintaining properly functioning equipment or using an approved vendor
Will there be staking pools?
There won’t be any official staking pools. There may be 3rd party staking pools available at some point in the future.
Can I stake with RHOC I already own?
Yes. Most of the process is the same if you are staking with RHOC you already own. Please register your interest and for the question “How many RHOC tokens are you interested in acquiring?” answer with 0.
* the number of million dollar validator agreements is capped at 40
** required to validate at mainnet launch
Learn more about validator economics