Welcome to our first Validator Report for the period from May to October 2022.
From now on, we will provide monthly updates detailing:
- The amount of funds harvested
- Usage of funds and
- Plans for growth.
Thanks for joining us on our journey to redefine global impact financing!
Angel Protocol provides tooling for changemakers to fundraise, coordinate, and invest. We offer a solution that better connects capital flows to these changemakers in enduring and creative ways.
Validator rewards are a cornerstone of this solution. By operating a host of cross-chain validators, Angel Protocol supports the decentralization of the underlying blockchain ecosystem, and also:
- Embeds an element of social good at the foundational layer of a blockchain
- Provides a no-cost option for blockchain ecosystems to participate in social impact through delegation
- Engages with individuals who can donate recurring yield without giving up exposure to their underlying asset
Validator income totals:
We currently operate validators on the Kujira, Terra, and Juno networks.
Rewards are harvested monthly, with a total of $106,263 harvested from May 2022 through October 2022.
These funds will be allocated as follows:
- Direct Charity Distribution: funds are directly sent to existing charity endowments on our marketplace, visible on our leaderboard.
- Angel Protocol Endowment: funds will be earmarked to seed $100 for newly on-boarded non-profit endowment accounts, visible on our marketplace.
- AP Runway: funds will be used to support the ongoing operations of Angel Protocol until we’re able to raise additional capital to secure our runway, at which point all validator revenue will go 100% to charity
It’s highly competitive to consistently be in the active set of validators on a given network. This creates a risk for stakers looking to stake for impact across any charitable validator. If that respective validator is not in the active set, no rewards will accrue.
We believe collective action gets us further than individual pursuits, and are working on a proposal across a handful of active community & impact validators to spread social impact and generative giving as a default, with more details to come!
Reference – what is a validator?
Validators are rewarded for their work by getting a percentage of the transaction fees from across a whole blockchain eco-system.
So, validators commit new ‘blocks’ in the blockchain and receive revenue from users transaction fees in exchange for their work. Validators must also participate in governance by voting on proposals and their voting power is weighted according to the total stake delegated to them. That’s what the Angel Protocol validators do, and that’s why we have the income above.
Most networks have an ‘active’ set of validators capped at a particular number (150 for Cosmos, 135 for Juno), based on respective delegation weight. Over time, the maximum number of validators may be increased via on-chain governance proposal (Cosmos Hub). But at the moment, a validator cannot participate in consensus or generate rewards until the stake delegated is high enough to be in the top 150 or 135.
This is why we are investigating how to reduce the risk for community validators, including the Angel Protocol validators, of falling out of the active sets and so receiving no reward income.