Dexalot’s Subnet Validation Program
Info for Validators and Delegators
The Dexalot team has been working hard all spring and summer on building our Avalanche subnet, and we are happy to announce the launching of the new Dexalot is just around the corner. Users will have a far better trading experience with cheaper transaction and trading fees unmatched on Avalanche, better liquidity, tighter bid-offer spreads, blazing speed, and many other new features and innovations that are coming out soon. Stay tuned to this and our other channels for further announcements on everything we are building.
However, for today, we want to focus on our plans for validators and delegators.
As you may be aware, the path to the subnet began with Dexalot’s #Can’tWait4theSubnet campaign in which users were incentivized to hold their Dexalot token ($ALOT) in order to become potential validators or delegators for the Dexalot subnet. Since this campaign is coming to an end, here is your guide for everything that Dexalot validators and delegators need to know, including what validation on the Dexalot subnet will look like, how you can join in to help secure the first DeFi subnet on Avalanche, and what you can do with what you got from #Can’tWait4theSubnet if you are not becoming a validator.
VALIDATORS
All Avalanche subnets are individual blockchains made up of a group of validators run through virtual machines. Dexalot will start with 10 nodes run by operators comprising of the Dexalot Foundation, private sale participants and other users in the ecosystem.
To maintain a stable and secure environment, the Dexalot Foundation will initially operate 8 of the 10 nodes, while the remaining 2 will be operated by vetted and independent users who participated in Option 1 of our #Can’tWait4theSubnet campaign. Over time the number of nodes will increase and become more diversified as Dexalot matures and grows.
The two users will be selected based on the number and duration of $ALOT tokens held during the campaign and must meet our vetting requirements.
Over the next few weeks, we will reach out to such candidates to take part in a KYC (Dexalot’s Know Your Customer) process. To be selected you will be required to:
- hold a minimum of 30,000 $ALOT
- lock your holding for a minimum of 3 months.
You will receive validation rewards in $ALOT at 9% APY distributed via a smart contract. Minimum node hardware requirements are the same as those used to validate Avalanche.
- CPU: Equivalent of 8 AWS vCPU
- RAM: 16 GB
- Storage: 1 TB
- OS: Ubuntu 18.04/20.04 or MacOS >= Catalina
In addition, geographic location is not a major consideration in the ranking and prioritization of applicants but if there are many applicants with similar qualifications this criteria may be utilized. So, if you are a strong validator with a good validation track record on Avalanche and would like to apply you can do so by answering a few questions — here.
You will be asked:
- Your name and to provide an email contact address;
- What’s the wallet address you’re using to hold $ALOT?
- How much experience do you have running an Avalanche validator node?
- Where are you located?
- How will you be hosting a validator node? A. Cloud Provider or B. Owned Hardware ?
- If you answered A to the last question, which cloud provider will you be using? If B, please provide your hardware specs below.
- What is the period of time you’re planning to hold $ALOT?
- How much $ALOT are you currently keeping on hold?
DELEGATORS
If you are not selected as a validator you can still participate in the distribution of subnet validation rewards by delegating what you had with #Can’tWait4theSubnet. In fact, anyone with a minimum of 750 $ALOT will be able to delegate regardless of whether you participated in Option 1 or Option 2 of #Can’tWait4theSubnet.
As delegators you will be able to receive the same 9% APY reward that validators do minus a delegation fee depending on how you participated in #Can’tWait4theSubnet campaign.
- Option 1 participants have a total delegation reward percent = 8.550% APY (.09-(.05*.09))
- Option 2 participants have a total delegation reward percent = 8.325% APY (.09-(.075*.09))
- the__General__Public has a total delegation reward percent = 8.100% APY (.09-(.1*.09))
(The fee for Option 1 participants is 5% of rewards; for Option 2 participants it is 7.5% of rewards and for the general public it is 10% of the validation rewards)
This is made possible because Dexalot will be running a majority of the initial nodes and will pass on all validator rewards directly to delegators.
REWARDS FOR OPTION 1
Users who held for at least 2 continuous months in Option 1 of #Can’tWait4theSubnet will receive a proportionate share of at least 25% of aggregate trading fees collected by Dexalot for up to 1 year unless and until governance becomes active and there is a proposed vote otherwise. Total trading fees distributed to all such users will not exceed $5,000,000. This distribution will be weighted by the number of $ALOT tokens locked and the duration of the lock on the Subnet.
Get some sunscreen on and enter what is surely to be a bright future for the Avalanche ecosystem as the Dexalot subnet platform and exchange comes on-line.
Writer: Brad McFall
Editor: Dan Marcoulis
Graphics: Can Toygar
About Dexalot:
Dexalot is a revolutionary decentralized exchange aiming at bringing the traditional centralized exchange look and feel to a decentralized on-chain application. Its mission is to bring a truly inclusive and transparent environment where Dexalot users can trade crypto securely and efficiently, with no slippage or custody risk. It is built on Avalanche, the fastest smart contracts platform in the blockchain industry.
