Understanding the Roles of MilkyWay’s Operators and Validators
MilkyWay’s liquid staking protocol is built on a robust blend of CosmWasm contracts, a multisig custody system, and the Cosmos SDK authz module. For an in-depth look at our technical architecture, check out our detailed blog post.
Operators at MilkyWay
Multisig Custody: A Core Feature
The multisig setup is a critical aspect of MilkyWay. Our multisig accounts on Celestia are a 5-of-7 configuration, meaning transactions need approval from at least five operators. This setup is crucial for ensuring a high-security standard.
Key Responsibilities of Operators
- Managing Funds Security: Operators are in charge of the multisig holding user funds’ on Celestia.
- Contract Updates: They handle uploading new smart contracts, crucial for MilkyWay’s updates and versioning.
- Granting Access to Grantee Account: In order to streamline operations, the multisig does not sign every transaction. Instead, it grants rights to a Grantee Account on Celestia. This account is responsible for handling IBC and staking transactions within certain defined limits and boundaries. It is important to note that the multisig retains the power to update these rights.
Operator Selection Process
Our initial lineup includes Everstake, Chorus One, Allnodes, 01node, Keplr, DSRV and Cosmostation. These entities are well-versed in blockchain security, collectively safeguarding assets worth around $6.6 billion.
The future DAO will allow token holders to have a say in adding or removing operators.
Validators at MilkyWay
MilkyWay does not run our own validators on Celestia; instead, we partner with validators in Celestia’s existing validator set and delegate uniformly to them. MilkyWay’s partnered validators will not charge more than 10% commission to keep the staking APR even.
Key Responsibilities of Validators
- Securing the Network: Validators are essential for securing the Celestia network, ensuring transaction and block validity.
- Contributing to Consensus: They are integral to Celestia’s consensus mechanism, maintaining network stability and reliability.
Validator Selection Process
Our partners include twelve experienced validators: Finoa, CryptoCrew, Figment, P-OPS, Everstake, Chorus One, Allnodes, 01node, Cosmostation, Hex Trust, DSRV and Keplr. They were chosen for their proven track record and validating experience.
The future DAO will allow token holders to have a say in the staking distribution and adding or removing of validators.
Do note that slashing is still a possibility when using the MilkyWay platform, as this depends on the validators’ behavior. At genesis, Celestia does not slash for downtime but imposes a 2% penalty for double signing. Please conduct your own due diligence before participating in staking activities.
