WCT Series (8): Staking Requirements and Rewards for Node Operators
In the WalletConnect network, node operators are the backbone of the entire system, responsible for maintaining the stable operation of service nodes. To become an operator, one must first meet the staking requirements: a minimum stake of 100,000 WCT tokens, along with a commitment to a time lock period ranging from 1 week to 104 weeks. Initially, this minimum amount is a hard threshold, and the time lock must be at least 52 weeks. These two factors together determine your staking weight—more stake and longer lock means a higher weight, which in turn means a larger share in the reward distribution.
Why is it designed this way? The main purpose is to encourage everyone to take the network seriously and not to enter and exit casually. Staking is not just a ticket to enter; it is directly linked to rewards. The reward pool always has an initial supply of 17.5%, with the portion allocated for staking rewards determined by governance, typically between 25% and 66%. Each operator's reward is distributed according to their weight proportion, calculated as your weight divided by the total weight, multiplied by the reward pool. However, there is a cap: a single weight cannot exceed 1/10 of the total amount to prevent monopolization by large holders.
Rewards are divided into two parts: basic rewards and performance bonuses. The basic reward is fixed; for instance, each node can initially receive a certain amount of WCT, while the bonus depends on your node's performance—longer runtime and lower latency will yield more rewards. The downside? If a node malfunctions, for example, due to malicious behavior, it will enter a 'quarantine' state, pausing rewards. A disabled node must wait until the lock period ends to retrieve the tokens. This mechanism encourages long-term investment from everyone, ensuring the reliability of the network. In summary, being a node operator is not just a technical job; it requires an understanding of economic incentives, and if done well, the returns can be substantial.
