PAW Chain encourages increased participation from validators to promote decentralization of the network.

Each validator is compensated for every block they help validate. In a cross-stitching format, five validators are selected per block.

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Cross-Stitching Methodology

PAW Chain employs a unique cross-stitching methodology to ensure blockchain data accuracy through a three-step redundant failure prevention system. Validators are divided into three levels, and for each block, five validators are involved in proposing, submitting, and verifying data. Two validators verify pre-block data, two verify post-block data, and three update the current block, ensuring no overlap in roles and preventing malicious activity. This method ensures that each block is confirmed twice, with random validator selection enhancing network security.

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Validator Requirements and Rewards

As we begin bringing on validators, there will be a cap of 12 nodes initially.

There will be 8 team nodes to ensure the security and stability of the network, with an additional 4 nodes for additional validators.  Once the 4 additional validators are set up and prove their stability and reliability, the system will remove 2 team nodes and open up those 2 slots to others who wish to be validators.  These slots are on a first come, first served basis.  This will result in 6 team nodes and 6 community nodes.  As we grow over time and our volume increases, as the need for more validators arises, more slots will be made available.

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Stake Requirement: 

•  To become a validator, an individual node must have staked 2.5 Trillion PAW (2.5t) to be in the active validator set. 

•  Validators can fully self-stake or have their stake partially funded by lockers.

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Rewards Distribution for Full Stake Validators:

•  Validators with the full 2.5t stake receive 90% of the block rewards for the blocks they sign.
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•  The remaining 10% of the rewards are distributed to delegators within their pool. This option can be attractive to delegators seeking potentially lower risk, as a validator with a higher stake is likely to be more committed.

•  Rewards can be claimed on the validator dashboard by clicking claim rewards at any time. 

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Partial Stake Validators

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Partial Stake Submission:
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•  Validators who cannot meet the 2.5t stake requirement can start with 10% of the token requirement. For example, a validator with 250 billion PAW (250bn) can enter a pending pool.

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Pending Pool and Delegations:
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•  Locker Stakers can review pending validators and provide delegations to help these validators reach the 2.5 trillion PAW requirement.

  - Once a validator receives enough delegations to reach the requirement, the validator status changes from the Pending Pool upon approval.

  - Validators who fall below the required self stake will be placed back into the pending pool.

  - If a locker decides to unbond there is a 14 day unlock period which will notify everyone of the pending unbond. After the 14 days the validator will return to the pending pool and another locker can lock in on a first come first served basis. 
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•  Rewards Distribution for Partial Stake Validators:

  - Validators with a partial stake, such as 250bn PAW, will receive only 10% of the total rewards for the blocks they sign.

   - 80% of the rewards are distributed among the lockers who helped increase the validator's stake to the required 2.5 trillion PAW

  - The remaining 10% of the rewards are distributed to delegators who delegate to the pool after it has already reached 2.5 trillion PAW.

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Downtime Penalization

Validators face penalties for downtime to ensure network efficiency. Validators are fined 1 billion PAW per hour of downtime. Missing two penalty checkpoints (24 hours) results in a temporary ban and a fine of 10 billion PAW per ban. Accumulating 10 consecutive bans leads to a 250 billion PAW fine and a 30-day suspension from entering the pending pool for a validator position. After this period, they must enter the pending pool for a validator position again.
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Lockers are essentially validators for the penalization and the fine comes from the validator + locker 
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Delegators are not penalized if their validator goes offline. However, if their validator is banned, delegators incur a 0.25% fine from the entire pool.
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Validator Server Specs & Requirements
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• Minimum 8 core CPU
• 32GB RAM
• High-speed NVMe storage (minimum 50GB)
• Network speed: 1Gbps to router, with at least 250 Mbps download and 100 Mbps upload to the server point

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Validator Status Logging and Penalty System
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The validator system logs the status of each validator (online or offline) at every block. If a validator is recorded as offline for an hour, they incur a 1 Billion PAW fine(1b). However, since our network only logs status during block processing, a validator that is offline when no block is processed won't be logged as offline. If they are offline during a block process, they will be logged as offline, and if they remain logged as offline for an hour, they will be fined.
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The requirements for validators are determined by network usage, and validators are selected randomly and based on the lowest latency. Fines are deducted from the validator's stake, and if the stake falls below the required threshold due to fines, the validator must replenish their stake to become active again.
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Currently, validators are unable to switch wallet addresses dynamically, but this capability will be introduced in an upcoming update.
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Unbonding Period and Checkpoints

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Unbonding Period:
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The unbonding period on PAW Chain refers to the duration during which a delegator unstakes or unbonds from their validator. Currently, on PAW Chain, the unbonding period is set at 14 days. This means that once a delegator initiates the unbonding process, it takes 14 days for their PAW coins to become fully available for transfer or withdrawal.
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Checkpoints:
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Checkpoints on PAW Chain are scheduled events that occur every 12 hours. These checkpoints serve as critical intervals within the blockchain network's operation, facilitating various functions such as validating transactions, updating state changes, and ensuring network synchronization. The regularity of these checkpoints enhances the efficiency and reliability of the PAW Chain ecosystem, supporting smooth and timely operations for validators, delegators, and users alike.

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PAW Coin Exclusivity
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In the architecture of our validator system, PAW Coin serves as the exclusive cryptocurrency utilized within the chain for all staking, delegating, validating, and reward distribution activities. This section details the importance and implementation of PAW Coin as the sole digital asset in the network.

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Staking with PAW Coin
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•  PAW Coin is the only accepted currency for staking within our chain. Validators are encouraged to stake a specified amount of PAW Coin to secure 

•  Their position and participate in the network. This ensures that all validators have a vested interest in the health and security of the blockchain.

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Delegating with PAW Coin
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Delegators, who wish to support and participate in the validation process indirectly, must use PAW Coin to delegate their stakes to chosen validators. By exclusively using PAW Coin, we streamline the delegation process and maintain a consistent economic environment within the network.

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Validating with PAW Coin
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Validators earn rewards in the form of PAW Coin for their efforts in maintaining the integrity and performance of the blockchain. The exclusivity of PAW Coin simplifies the reward mechanism and ensures that validators are compensated in the same currency they have staked.

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Reward Distribution
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All rewards generated from block validation, transaction fees, and other network activities are distributed exclusively in PAW Coin. This creates a unified incentive structure, encouraging participants to accumulate and utilize PAW Coin within the ecosystem.

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Economic Stability and Growth
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By making PAW Coin the exclusive currency for all core activities within the chain, we promote its demand and utility. This strategy is designed to drive the economic stability and growth of PAW Coin, aligning the interests of all network participants with the success of the cryptocurrency.

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The exclusive use of PAW Coin for staking, delegating, validating, and rewards reinforces the economic foundation of our blockchain and ensures a cohesive, robust, and secure ecosystem for all participants.

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Node Allocation and Expansion Plan
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To ensure a balanced and secure network, we have devised a plan for node allocation and expansion. This strategy involves an initial setup, followed by adjustments based on the performance and reliability of additional validators. As the network expands, more opportunities for community participation will be created.
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Initial cap of 12 nodes:

•  8 team nodes for network security and stability 

•  4 additional validators
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Upon stabilization and reliability of the 4 additional validators:

•  System will remove 2 team nodes

•  Open 2 more slots on a first-come, first-served basis

•  Resulting in 6 team nodes and 6 community nodes

•  Team nodes will remain until chain maturity to ensure security of the network
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Future growth:

•  As volume increases, more validators will be needed and additional slots will be opened.