Node Hosting on L1X
Layer One X (L1X) is a revolutionary blockchain platform that shatters the limitations of traditional networks. Unlike its predecessors, L1X boasts groundbreaking interoperability, allowing seamless connection between public, private, and hybrid chains, EVM and non-EVM alike. This translates to new possibilities for developers, users and node infrastructure providers. As L1X connects more chains, the network effect intensifies, attracting users and developers, and ultimately fuelling the value of the L1X ecosystem.
This document explores L1X node hosting. By participating as a node operator, you'll play a vital role in securing the network and validating transactions. In return, you'll be eligible for attractive rewards, contributing to the overall prosperity of the L1X ecosystem.
What is an L1X Validator Node?
A validator node (also known as a Full Validator Node or FVN) is a critical component of the L1X blockchain and plays a vital role in maintaining network security and stability by:
Validator nodes ensure the legitimacy and accuracy of transactions on the network before they are added to the blockchain ledger.
Validator nodes collaborate through a consensus mechanism to reach an agreement on the current state of the blockchain.
Proposing blocks and validating them offer block rewards and transaction fees. The limited number of full validator nodes every month provides an attractive reward for Node hosters.
What are the different types of nodes to host on Layer One X?
L1X offers two node types, each with varying functionalities and reward structures:
Full Validator Node (FVN):
Requires: 25,000 L1X Coins and a corresponding Node Hosting NFT obtained through either the XPerks Program (exclusive to contributors in the completed seed, private or public sales) or the L1X Node NFT Sale. Currently, the total number of nodes has been limited to 800.
Functionality: Validating transactions, blocks and proposing blocks which is a major part of the consensus mechanism, enabling transaction validation and earning higher rewards compared to Event Listener Nodes.
Event Listener Node (ELN):
Requires: 5,000 L1X Coins and a corresponding Node Hosting NFT obtained through the XPerks Program.
Functionality: Contributes to network security by listening to events and earning rewards. However, it has limited functionalities when compared to Full Validator Nodes.
When can I start hosting a node?
Full Validator Node hosting date started on 11th of June 2024. 80 FVN nodes will be available to host in June with an additional 80 FVN node hosting spots released each month.
Delegated staking on the node will begin with the commencement of Node Hosting.
However, this is only applicable to users holding the corresponding Node NFTs.
How do I obtain a Full Validator Node NFT?
Node NFTs for FVNs will be available for purchase through a dedicated sale on L1XApp.com (currently only compatible with desktop). The number of available FVN Node NFTs will be limited, so make sure to participate early if interested.
To purchase a FVN in the L1X Node Sale you will buy the required 25,000 L1X Coins at a public sale price of $0.50. Once purchased, the L1X Coins coins will be available to you in your XWallet.
Your next step will be to go to the XPerks Program in the L1X App and choose your selected tier (Platinum or Gold) to unlock your Node NFT. Each tier also comes with additional rewards, such as bonus L1X Coins.
Please note that those who opt into the Platinum Tier will be prioritised to host nodes first.
How much does it cost to host a node?
The cost of hosting a node can be broken down into two main components:
Staking Requirement:
Full Validator Node (FVN): Requires staking a minimum of 25,000 L1X Coins to keep the node 'active'.
`Event Listener Node (ELN): Requires staking a minimum of 5,000 L1X Coins to keep the node 'active'.
Hardware and Operational Costs: The cost of running the node hardware (CPU, RAM, storage and internet) will vary depending on your chosen setup and provider.
How do I earn rewards for hosting a node?
L1X has allocated an amount of block rewards to Node hosters, providing a predicted APR of approx 40% in addition to commission received from delegated stakers.
L1X rewards both FVN and ELN operators for their contribution to network security and stability. 50% of all gas fees are distributed to node hosters. In addition to these rewards extra L1X Coins from the validator pool will also be distributed to node hosters in the first few years of operation to provide additional incentive to those hosting a node.
What are the technical requirements for hosting a node?
To effectively run an L1X node, your system should meet the following minimum specifications:
Processor: A modern multi-core processor, such as Intel Core i5 or AMD Ryzen 5 is recommended.
Memory: A minimum of 16GB of RAM is recommended to ensure smooth operation.
Storage: A minimum of 500GB to 1TB of SSD storage is recommended to accommodate the blockchain data.
Network: A stable internet connection with at least 100Mbps bandwidth is recommended for efficient communication with the network.
What is the unbonding period for delegated stakers?
An unbonding period iswhene delegated stakers decide to unstake their coins from the L1X Nodes. The unbonding period is 30 days. This is the time it takes to withdraw your staked L1X Coins after you decide to unstake. After the 30-day unbonding period your unstaked L1X Coins will be available for you to add back into your wallet.
What are the future plans for the blockchain, and how does it positively impact node operators?
L1X has the ability to connect to any public, private or hybrid chain, EVM or Non-EVM. As L1X connects to more and more chains, node operators can expect several positive future impacts:
Increased Transaction Fee Volume: As more chains are connected to L1X, the overall network effect grows, potentially leading to a higher volume of transactions across the entire ecosystem. This translates to potentially increased transaction fees for node operators but will depend on the specific fee distribution model of the blockchain.
Greater Interoperability and Utility: As L1X connects to more chains, it fosters greater interoperability between different blockchains. This allows users to seamlessly transfer assets and interact with applications across different chains, potentially increasing the overall demand for L1X's network and its services. This can ultimately benefit node operators by contributing to the growth and potential value of the L1X token or other rewards they receive.
Check all the details from the Live AMA about XPerks Club and Nodes on 13th March 2024.
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