Volition (Enhanced Validium)
Incentivizing DA Node Runners
Last updated
Incentivizing DA Node Runners
Last updated
Lumia chain is introducing an innovative approach to its Polygon CDK validium configuration by incentivizing Data Availability (DA) lightclients through a reward distribution mechanism. This enhancement aims to encourage participation, as well as improve decentralization and the overall health of the Lumia L2 network.
The primary reasons for introducing incentives for DA nodes are:
Encouraging Participation: By offering LUMIA token rewards, Lumia chain incentivizes more individuals and entities to run DA nodes and participate in the network's data availability and validation processes.
Promoting Decentralization: Allowing node sale participants to earn helps distribute the network's responsibilities and rewards a wide group of stakeholders, promoting decentralization.
Ensuring Network Health: Incentivizing DA nodes based on factors such as uptime and fees encourages reliable and consistent performance, contributing to the overall health and stability of the Lumia network.
The enhanced validium data flow in Lumia chain builds upon the existing process, with the addition of lightclient DA nodes, reward distribution and calculation steps:
Batch Formation: The sequencer collects user transactions, adds them to blocks, and organizes the blocks into batches while recursively computing their hash values.
Batch Authentication: Once the batches are assembled and hash values computed, the sequencer forwards the batch data and corresponding hash values to AvailDA and DAC for authentication.
Data Validation and Storage: DAC nodes and AvailDA independently validate the batch data against the received hash values and store the validated hash values in their local networks and databases for future reference.
Signature Generation: Lightclients will split data as per Avail algorithms and "data sampling" technique and make it available for querying. On the flip side, each DAC node generates a signature for each batch hash, endorsing the batch's integrity and authenticity.
Communication with Ethereum and Reward Distribution: The sequencer collects the DAC members' signatures and the original batch hash and submits them to the Ethereum network for verification. Meanwhile, lightclients continue to serve data requests. Rewards are calculated on the fly for lightclients based on multiple metrics and requests served while DAC quitely stores same data in a centralised DB for redundancy.
Verification on Ethereum: A designated multi-sig smart contract on Ethereum verifies the submitted data.
Final Settlement with Zero-Knowledge Proof and Reward Calculation: The aggregator prepares a proof for the batch using the prover and submits it to the Ethereum network. This proof confirms the validity of the transactions in the batch without revealing transaction details, and the chain's state is updated on Ethereum. After successful settlement, the reward distribution smart contract calculates the rewards for each participating node based on factors such as the number of delegated NFTs, uptime, and fees. The contract then distributes the LUMIA token rewards to the DAC nodes and their delegators according to the calculated amounts.
To facilitate the reward distribution process, Lumia chain will develop adjust Avails lightclients so that it can:
Keep track of the nodes and their delegators (via NFT delegation).
Receive information about participating nodes.
Calculate rewards based on the chosen criteria (e.g., round-robin, delegated NFTs, uptime, fees).
Distribute LUMIA tokens to the nodes.
The reward calculation and distribution will be triggered after the successful settlement of each batch on Ethereum (step 7), ensuring that rewards are only given for properly validated and settled batches.
By implementing this enhanced validium configuration, Lumia L2 not only maintains the benefits of reduced gas fees and improved scalability but also fosters a more decentralized, participatory, and robust network. The incentivization of DA nodes through LUMIA token rewards encourages active involvement, ultimately contributing to the long-term success and stability of the Lumia ecosystem.
