The Mechanics of Participation: Staking in the WalletConnect Network
To ensure the reliability and security of the WalletConnect Network, Service Node Operators must participate in a staking mechanism. This process involves two key components: providing a minimum pledged stake of WCT tokens and committing to a time lock. For the initial set of nodes, this requires a minimum of 100,000 WCT and a time lock of at least 52 weeks.
This staking model serves a crucial purpose: it aligns the incentives of the node operators with the health of the network. Operators are rewarded based on a combination of their staked amount and performance metrics, such as uptime and latency. This encourages them to maintain high-quality service, which is essential for the network's robustness and scalability.
The system also includes a series of node statuses—Active, Reserve, Standby, Jailed, and Deactivated—that help manage the network's integrity. If a node fails to meet performance standards, it can be "jailed," which excludes it from the active set for a period. This mechanism ensures that only the most reliable and compliant nodes are actively processing user requests, maintaining the network's overall performance and integrity.
