Udder Chaos Validator

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

Where do the profits go?

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.

Why invest for such a small profit margin?

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.

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