Udder Chaos Validator
Last updated
Last updated
Validators are what run the Solana blockchain. They provide consensus and validate transactions. Validators are rewarded with a portion of transaction fees as well as a percentage of Solana's inflation rate based on the amount staked. The more staked, the more a validator earns. There are two different types of stake that determine how much validators make. Self-stake and third-party stake. Self-stake is when the validator itself stakes SOL, meaning that it earns 100% of the amount earned. Third-party stake is stake supplied by any person/group other than the validator itself. The difference here is that the validator only earns a fee on the amount made by the third-party. Examples of 100 SOL rewards with a 10% fee Self-stake earns 100 SOL = 100 SOL kept by validator Third-party earns 100 SOL = 100*0.10 = 10 SOL to validator and 90 SOL to staker
A pretty standard fee across the market is 10%. You can stake with the validator of your choice by opening your wallet and clicking your Solana balance. You will see "Start earning SOL". By clicking that you can scroll through a list of some of the most popular validators or choose to search for a validator of your choosing. Udder Chaos attempts to compete with some of the most popular validators by having a reduced fee at 7%. This is attractive to staking pools, like Marinade Finance (https://marinade.finance/) which split their stake among many of the smaller validators in the space. At the time of writing Marinade stakes 24,836 SOL with our validator, of which Udder Chaos earns 7% of Marinade's profits! As for self-stake, Udder Chaos currently has 8,814 SOL of it's own staked in the validator and has approximately 3,000 SOL slowly being added from a previous investment. This will bring the self-stake up to 11,800 SOL! The amount of self-stake will continually grow overtime as the project re-invests in itself. The project re-invests 50% of all royalties and 50% of all validator profits are added to the self-stake of the project. The more you have staked the more you earn. This means that over the lifetime of the project the validator will continue to earn more and more.
As mentioned previously, 50% of the profits from the validator are re-invested. The remaining 50% is split among token value and team wages/subscriptions. 100% of validator profits are re-invested into the project.
The return percentage varies between 7-8% and is slowly declining, but in terms of traditional finance, this is a large return. Although in web3, holders are often looking for 3-400% returns consistently so 7-8% may seem small. We are looking at the bigger picture, where we see the value of SOL increasing over time. This means we are getting 7-8% returns on SOL multiplied by the increase % of the SOL price.
The following chart is based off of the roughly 12,000 SOL we currently have self-staked. That number is continually expanding (started at 7,000 SOL 6 months ago) and this doesn't include our third-party stake. We are investing in the future of SOL, and as it succeeds, so will our project.
