> For the complete documentation index, see [llms.txt](https://docs.valuechain.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.valuechain.xyz/part-iii-token-and-staking/2.-validator-staking.md).

# 2. Validator Staking

#### 2.1 Basics

SOSO staking happens at the ValueChain consensus layer.**Minimum stake.** A validator must stake at least **10,000,000 SOSO** to become active. This minimum is a consensus rule enforced on chain.**Lockup.** Each stake is locked for **at least 1 year**.

* Every additional stake is counted separately, and its lockup starts from the time it was added.
* Longer lockups are not enforced by the protocol.

**Active set.** The number of active validators is capped.

* Validators are ranked by staked SOSO, and the top-ranked ones form the active set.
* The cap reflects the network's current stage, not its final form. It will be raised in stages as decentralization progresses.
* A validator that meets the minimum stake but is outside the active set does not take part in consensus. Its stake is released once its lockup expires.

**Unstaking.** Once a lockup expires, the validator may withdraw part of that stake, as long as its remaining total stake is at least 10,000,000 SOSO. Otherwise it must exit in full, and it leaves the validator set at the next epoch boundary.**Withdraw Wallet.** Each validator names a Withdraw Wallet.

* Only the Withdraw Wallet can start unstaking.
* Unstaked SOSO can only be paid to the Withdraw Wallet's EVM address.
* This separates the permission to run the node from the permission to move its funds.

**Withdrawal delay.** Every withdrawal from staking, of principal or of rewards, is paid out after a **7-day delay** (1,575 epochs).

#### 2.2 Rewards

The staking reward rate falls as the total amount staked rises. As on Ethereum, it is inversely proportional to the square root of total stake:r(S) = K / √S

* `S` is the total SOSO staked across the network.
* `r(S)` is the annual reward rate.
* `K` is a protocol constant.

| Total SOSO staked | Annual reward rate |
| ----------------- | ------------------ |
| 40,000,000        | ≈ 7.5%             |
| 100,000,000       | ≈ 4.74%            |
| 400,000,000       | ≈ 2.37%            |

**Distribution.** Rewards are paid once per epoch, in proportion to each validator's stake, and are automatically compounded. Rewards are not locked and can be withdrawn at any time, subject to the standard 7-day withdrawal delay.**Source of rewards.** Rewards are paid from the **ValueChain Ecosystem Incentive Treasury**. The community allocates this treasury from the SOSO ecosystem reserve through on-chain governance (Snapshot space `sosovalue-governance.eth`):

* [first allocation proposal](https://snapshot.box/#/s:sosovalue-governance.eth/proposal/0xa57f3d9a327a5a1e9ec6c8e08ef2a62eb9f2ff35368a86eab2e01c2376e245ce)
* [second allocation proposal](https://snapshot.box/#/s:sosovalue-governance.eth/proposal/0xed67bdfb30bb0b03b1bd9d920f27f2fce40075c6336e48059a094693be9a8f7f)

#### 2.3 Delegation to Curators

A validator can delegate its staked SOSO to any number of **Curators**, the asset issuers and managers who create vaults through Tigris Protocol on ValueChain. A Curator's issuance and management capacity grows with the SOSO stake behind it.

* **Consensus is unaffected.** Delegated SOSO still counts toward the validator's consensus stake, so its block rewards do not change.
* **Revenue share.** In return, the validator shares in the technical service fees of the Curator vaults it backs. Each Curator sets its own revenue-share ratio.

#### 2.4 Validator responsibilities

Validators are expected to stay online, keep up with consensus and follow the protocol. Accountability rests on two mechanisms:

* **Jailing** is a penalty for poor performance. It does not touch the validator's principal. A jailed validator does not earn any reward until it unjails itself.
* **Slashing** is reserved for provably malicious behaviour.

Neither automatic jailing nor automatic slashing is enforced on chain yet. Both are planned.

#### 2.5 Hardware requirements

| Node type           | vCPU | Memory | Storage    | OS           |
| ------------------- | ---- | ------ | ---------- | ------------ |
| Validator           | 32   | 128 GB | 1 TB SSD   | Ubuntu 24.04 |
| Non-validating node | 16   | 128 GB | 500 GB SSD | Ubuntu 24.04 |