Summary
The time has come to reserve your Orcfax Validator license! But before we start explaining how you can reserve your validator license, it’s important to note that this is just the first step towards being a Cardano mainnet Orcfax validator. In the coming months we will take our community through the following steps:
- Reserving your Orcfax Validator license (you are here now)
- Purchasing and minting your Validator license
- Introducing the Orcfax Incentivized Testnet (ITN)
- Depositing your $FACT into the Validator smart contract
- Participating in the ITN
- Claiming your ITN $FACT rewards
- Going live on mainnet as a validator with our decentralized validator network
We will publish medium articles, open up discord channels and host AMA’s for all these steps as we move forward. This article is only focusing on the first step: How to reserve your Orcfax Validator license.
To become an Orcfax Validator you will need to 1) reserve, mint and hold a Validator license and 2) deposit $FACT tokens in our validator smart contract.
- There are only 100 validator licenses available. A license will cost 100,000 $FACT to mint, but before it can be purchased, you will need to reserve a license. In order to make a valid reservation, potential licensees will need at least 250,000 $FACT in their wallet. A ranking system will be employed to score user reservations based on two factors: timeliness of reservation (the earlier, the better score) and and the total $FACT submitted in the transaction (the more $FACT, the better the score).
- The required $FACT deposit will be determined by market value as of 1 March 2024, whereby either 500,000 $FACT or 10,000 USD equivalent in $FACT will be required (i.e. whichever $FACT amount is larger on that date).
The reservation process will start on February 17th at 19:00:00 UTC and end exactly 1 week later on February 24th at 19:00:00 UTC.
1. Introduction to the Validator model
Orcfax validators are the software nodes run by a decentralized network of operators around the world. These Orcfax software nodes collect, validate, publish and archive real world data on-chain for Cardano decentralized apps (dApps) to use. Instead of having off-chain business deals and contracts with hand-picked validators, Orcfax is implementing a permissionless and decentralized Oracle pool model for its validator network.
This means that anyone can become an Orcfax validator as long as they are able to stake the required amount of $FACT, are holding a validator license, and are able to meet the minimum technical requirements for running an Orcfax validator node (which are kept intentionally low to encourage widespread validator node adoption).
1.1 Validator rewards
When a fact statement is published on chain the validator that was randomly selected to put that statement on-chain will be rewarded with FACT tokens. This means that because the amount of Validator licenses are limited, more feeds means more rewards will be distributed to each active validator.
The initial version of the validator network (V1) will be designed to select validators at random to publish a fact statement, giving all validators an equal chance of earning a reward. Future models will weight this random distribution by biasing rewards to those with higher $FACT delegation.
1.2 How much can I earn as a validator
Validators can get an idea for the rewards they can expect by joining our discord and checking out the initial rewards calculator in the validator channel.
The calculator allows you to simulate certain scenarios by modifying the most important parameters that define the estimated rewards (like number of feeds). You can see a screenshot of this calculator below. The yellow fields can be modified by the user. Some fields include notes to help you understand how they work. You can also ask the team and the rest of the validator community in our discord for clarifications. See you there!
1.3 Incentivized testnet (ITN)
After the validator licenses have been distributed, we will launch the Incentivized Testnet (ITN). The ITN will take place on the Cardano test net(s) and also in our private validator channel in our discord. The validators that are willing to participate in the ITN and help us test the node software, will be rewarded for their efforts in working with the Orcfax team to finalize the technical and economical parameters of the model. Active participants will be rewarded with $FACT tokens. More details about this soon.
1.4 Non-validator rewards
Although not decided yet, non-validators may potentially earn $FACT rewards for staking their $FACT during the initial phase of the validator network (V1). The protocol could distribute a portion of both the customer fees and the $FACT emission to reward non-validators that stake their $FACT tokens. However, before these decisions are finalized Orcfax will facilitate a community vote in alignment with our goals to allow opportunities for community members to participate in (and shape) the future of the network.
1.5 Technical requirements
While we believe that accessibility plays a large role in decentralization, and have made design choices which we hope allows a broader range of participation within the network, it is still important to be aware of what will be required technically from those who choose to participate. In addition to a validator license and the minimum $FACT deposit, operators will be expected to be familiar with:
- The Cardano network
- Operating Linux servers
1.6 License + Deposit = Security + Utility
The use of a license and the required deposit is designed strategically to provide security, clarity, and fairness in the Validator Network.
The License is an NFT that represents the right to operate a validator node. The NFT is non-redeemable, but tradable on the secondary markets.
The Deposit is a redeemable amount of $FACT staked by validators for network participation. It ensures validator accountability and is subject to slashing (penalty) for actions that harm the oracle network (i.e. poor node network response time, contributing non-conformant data, etc). Validators can reclaim their deposited $FACT anytime but they will lose the ability to run their node unless a deposit is added once again in the future.
2. How and when to reserve a license
After several constructive conversations with our community, we have decided to go with a point-based reservation process that is fully permissionless and open to all. The points system provides greater opportunity to all and disincentivizes “whales” acquiring multiple licenses for the purposes of speculation. The points system will also lower the chances of bots.
To reserve one of the 100 licenses, you need to send yourself a transaction holding 2.2069 $ADA and at least 250,000 $FACT.
Your transaction will have a higher score if you send your transaction as soon as possible (after the reservation starts) AND if you add more $FACT to that transaction.
The reservation process will start on February 17th at 19:00:00 UTC and end exactly 1 week later on February 24th at 19:00:00 UTC
During the reservation period, you will be able to follow your reservation in a realtime leaderboard at https://status.orcfax.io/validators.
[update 15–02] At the end of the reservation process, no new entries will be accepted and the top 100 valid entries will be whitelisted to mint their validator license at a later date. NOTE: The wallet MUST retain the $FACT amount in their wallet that they reserved with up and until the minting date in order to keep their whitelist status.
Mint date to be announced shortly after the reservation process ends. The minting price of the license will be 100,000 $FACT.
[Update 15–01] Orcfax will transfer the tokens acquired from the license minting to the ecosystem wallet. This allocation is for future partnerships, (centralized) exchange liquidity, marketing campaigns and developer grants. It will also be used to fund research and to develop tools and services that contribute to the health and growth of the Orcfax ecosystem.
2.1 Acquiring points
The more points you earn the higher your ranking in the process. In the event that more than 100 wallets want to reserve a Validator license, we will look at the top 100 wallets with the most points. There are two ways to earn points:
2.2 Time points
Calculated based on how quickly you send the transaction after the reservation period begins. The sooner you send your transaction, the more time points you will receive. The maximum Time points you can earn is 604,800. This is the amount of seconds in 1 week (the period that the reservation will run). Every second that passes after the reservation period starts before your transaction is on chain, will cost you 1 point. This means that being very fast does not make a big difference in the amount of time points you will get.
2.3 Stake points
Calculated based on the amount of $FACT that you add to the reservation transaction (which goes to your own wallet). E.g. if you send 500,000 $FACT in the transaction (instead of the minimum required 250,000), you will earn 500,000 Stake points.
[update 15–02] If a reservation entry exists for your wallet address (stake address or payment address), any subsequent entries from the same wallet address will invalidate the previous entry regardless of which one has more or less $FACT. Only the latest transaction counts. The others are excluded.
2.4 Transactions that will be excluded from the reservation process
The following transactions are also excluded from the reservation process:
- sent BEFORE or AFTER the reservation period
- not going to the same wallet
- not holding the required amount of ADA (2.2069)
- not holding at least 250,000 $FACT
- Wallets that fall below the amount of $FACT added to the reservation transaction before mint date (you cannot move your assigned $FACT until the minting event starts)
2.5 Example point scoring scenarios
- Point-scoring example 1 (valid)
You send a transaction to yourself containing the minimum required amount of 250,000 $FACT as soon as the reservation period starts. Your transaction is on-chain 20 seconds later at 19:00:20 UTC. This transaction will earn you 604,780 Time points (20 seconds deducted from the maximum). Your Stake score is 250,000. Your total points are: 854,780. - Point-scoring example 2 (valid)
You decide to send yourself another transaction 1 day later at 19:00:00 UTC, but now you are able to add 500,000 $FACT to this transaction. Since this transaction is 1 day later than the start of the reservation period you will earn 604,800 (max Time score) — 86,400 (seconds in 1 day) = 518,400 Time points. Your Stake score is now 500,000 bringing your total score to 1,018,400. Since this total score is higher than your previous score, the first transaction is disregarded and your current score is 1,018,400. - Point-scoring example 3 (valid)
You sent a valid reservation transaction containing 500,000 $FACT. Your wallet holds 1000,000 $FACT. You move 500,000 $FACT. Your reservation is still valid. - Point-scoring example 4 (excluded)
You sent a valid reservation transaction containing 250,000 $FACT. Your wallet holds 500,000 $FACT. You move 300,000 $FACT. Your reservation is no longer valid, since the balance has dropped below the 250,000 $FACT that was added to the reservation transaction.
3. Whitelisting and minting the License
[Update 15–02] The top 100 eligible wallets will be whitelisted post-reservation period. The rest are in reserve in case some don’t exercise their rights to mint a license or in case a reservation entry is invalidated due to moving their funds before the minting event begins.
After the reservation process, we will share a time-window for these wallets to mint their License NFT. In case of unclaimed licenses, a second round will open for the group of wallets held in reserve.
After you have reserved your Validator License you can purchase and mint it with 100,000 $FACT. The proceeds from this process will be used to further develop and improve the decentralized Orcfax solution. This License is, and always will be, tradable on the open market.
4. Participate in the ITN and/or become an Orcfax validator
If you want to participate in the ITN and/or become an Orcfax validator, you will also need to deposit a specific amount of $FACT tokens into a smart contract (besides holding the license).
The required amount will be 500,000 $FACT OR 10,000 USD in $FACT as of 1 March 2024 at 00:00:00 UTC (snapshot date).
Whichever is bigger, rounded down to 100,000 $FACT, will be the actual minimum required amount of $FACT to deposit.
4.1 Example deposit scenarios
Deposit example 1
- $FACT/USD price on the snapshot date is 0.015 USD
- 10,000 USD worth of $FACT = 10,000 USD / 0.015 USD = 666,667 $FACT.
- 666,667 $FACT is more than the minimum required amount (500,000 $FACT), therefore the actual minimum required amount will be 600,000 $FACT (rounded down to 100,000 $FACT)
Deposit example 2
- $FACT/USD price on the snapshot date is 0.03 USD
- 10,000 USD worth of $FACT = 10,000 USD / 0.03 USD = 333,333 $FACT.
- 333,333 $FACT is less than the minimum required amount (500,000 $FACT), therefore the actual minimum required amount will be 500,000 $FACT
5. Disclaimer
Be aware! During the reservation process, people might try to scam you. Only use our official channels as your information source.
About Orcfax
Orcfax is a decentralized oracle service that publishes data about (real world) events to the Cardano blockchain. Orcfax data is made available to on-chain smart contracts in Cardano’s eUTXO native format using the Cardano Open Oracle Protocol (COOP). Learn more about Orcfax.
Questions? Join our Discord!
