Validator Participation

This article provides details around the validator presale, and how to participate.

We know that the community has been highly anticipating our validator program for some time. Considering the potential rewards for those who participate, this is entirely understandable.

Given the significant appetite within the community, we’ve taken care to only communicate detailed information once we knew we could be as precise as possible. But today is the day!

Firstly, it is important to clarify that this is a presale for validators, and that the actual validator program will not be live for some time.

What individuals/institutions will obtain from this presale, is the right (a license) to run a validator once they become available.

3000 Validators

These 3000 validators represent the total number that will be available over the next 10–12 months. The sale will be conducted in 10 batches of 300 validators, with a maximum of 50 validators per address.

Here is a price breakdown per validator, per round (all purchases will be made using $TRAC tokens):

Round 1: 300 $TRAC
Round 2: 500 $TRAC
Round 3: 700 $TRAC
Round 4: 1000 $TRAC
Round 5: 1500 $TRAC
Round 6: 2000 $TRAC
Round 7: 3500 $TRAC
Round 8: 5000 $TRAC
Round 9: 7500 $TRAC
Round 10: 10000 $TRAC

The first pre-sale round will go live on the Trac Systems website at the end of June (tentative date of June 30th). Those who purchase validator licenses will be able to begin running validators once they become available, and they will be rewarded in $TAP token (approx. 10–15% APY). Please note that validator license holders will earn in perpetuity and have the right to use, transfer, and resell their purchased license.

The $TRAC received from the sale of the validator program will be used to build company treasury and different things such as CEX liquidity in the future, strengthen rewards system, governance rewards etc.

Ecosystem Validation

We recognize that the cost of individual validator licenses can be prohibitive for smaller $TRAC holders. So to ensure that everyone has the opportunity to contribute to the decentralization of the network, we will also be launching an ecosystem validation pool in the final week of May (approx. May 30th).

This ecosystem validator, operated by a third party partner, will work similarly to a basic swap, allowing for the acquisition of a percentage share in the ecosystem validator. By purchasing shares of the pool, participants will be rewarded with bundles of tokens from the ecosystem as they enter the market. Currently, these tokens include $SPOOKY, $FOXXI, $LPUNKS, and $TAP, with more to be added as additional projects express interest in building on the Tap protocol and seek support by depositing tokens for the ecosystem validators. The amount of $TAP rewards in the Ecosystem validators will be lower since participants won’t need to run the validation themselves (APY tbd based on total amount deposited).

Since the ecosystem validator will be available before the public launch, participants who purchase a share of the ecosystem validator will also secure a spot on the community allowlist for our public launch of $TAP.

Karmacoin and other pledged partners

In recent months, many projects have expressed their desire to support the decentralization of Tap protocol, by acquiring and assisting with validation. Therefore, we are also opening pre-validation participation for such third parties that hold a significant amount of $TRAC, and have been waiting for us to enable validation.

In Karma’s case, we still wanted to find a way to reward those who chose to swap $TRAC for $KARMA, as they were directly contributing to the Karma validator. If the Karma council deposits the $TRAC tokens before the public token launch, we will reward each swapper with a allowlist spot for our public launch of $TAP, and will also include those addresses in the $TAP airdrop using the first snapshot reward rules.

Furthermore, we decided to create a special approach for projects that showed early interest in becoming validators. Instead of requiring them to make a validator purchase, we are providing an alternative. They can lock the $TRAC they collected from their community and earn rewards through a staking mechanism, with $TAP rewards rate of the Ecosystem Validator pool.

For reference 👇👇👇:

Socials

Trac Systems Discord: https://discord.gg/trac
TRAC on X: https://x.com/trac_btc
TAP on X: https://x.com/tap_protocol
Pipe Protocol on X: https://x.com/PipeBtc
TAP Protocol Telegram : https://t.me/tap_protocol
Pipe Protocol Telegram: https://t.me/pipe_btc