ITN overview
This section will be routinely updated and added to in order to keep our validators apprised of the most current information pertaining to the upcoming Incentivized Testnet (ITN). Content will also detail the ITN’s structure, requirements for participation, and the rewards system which will be used to encourage robust participation and network growth.
Orcfax’s upcoming ITN is a major step in enhancing the decentralized oracle infrastructure on the Cardano blockchain. This initiative will prepare the network for a smooth mainnet launch, offering validators a platform to engage with Orcfax.
ITN rollout
The ITN will progress through four phases, each adding additional layers of validator node functionality; these phases, and their manuals, are listed below:
- Phase 1: Data collection for CEXes
- Phase 2: Incorporating DEX data
- Phase 3: Decentralized validator protocol
- Phase 4: Decentralized publication & Mainnet soft launch
Joining the ITN
Participants in the ITN should commit to engage earnestly with the process, dedicating the necessary time and energy. Tasks expected of participants will include actively providing feedback that will be instrumental in refining and strengthening the Mainnet protocol.
To join the ITN, participants must meet the following:
Validator model introduction
Orcfax validators are the software nodes run by a decentralized network of operators around the world. These Orcfax software nodes collect, validate, publish and archive real world data on-chain for Cardano decentralized apps (dApps) to use. Instead of having off-chain business deals and contracts with hand-picked validators, Orcfax is implementing a permissionless and decentralized Oracle pool model for its validator network.
This means that anyone can become an Orcfax validator as long as they are able to meet the minimum requirements.
Validator license
The Validator License is an NFT that represents the right to operate an Orcfax validator node. The NFT is non-redeemable, but tradable on the secondary markets. The use of a license and the required deposit is strategically designed to provide network security, clarity, and fairness within the Validator Network.
Initially, participants may only be required to hold a validator license on a Mainnet wallet. However, as we progress through the more advanced phases of the ITN, participants will also need one on Testnet.
Holding a validator license on Mainnet will allow participants to mint one on Testnet.
NB
ITN rewards cannot be earned without a valid license.
500,000 FACT deposit
On March 1, 2024 The required $FACT deposit for node operation was set at 500,000 $FACT. This sum was determined through market value, whereby either 500,000 $FACT or 10,000 USD equivalent in $FACT on March 1st would be required (i.e. whichever $FACT amount is larger on that date).
Participants need to maintain this balance in their Mainnet wallet, which will later need to be secured in a smart contract on the Testnet with tFACT (Testnet FACT).
The Deposit is a redeemable amount of $FACT staked by validators for network participation. It ensures validator accountability and is subject to slashing (penalty) for actions that harm the oracle network (e.g. poor node network response time, contributing non-conformant data, etc). Validators will be able to reclaim their deposited $FACT anytime. However, removing the required stake amount will result in losing the ability to run their node until a deposit is added once again.
Technical requirements
The minimum hardware requirements for each phase will be published within their corresponding manuals; requirements will also be released well in advance of rollout so that operators have sufficient time to ensure that they meet the necessary requirements.
Software requirements will be similarly disclosed as ITN phases progress.
Participants should anticipate that these requirements will change as development, and ITN phases, progress.
Knowledge requirements
Participants must possess the skills to operate a Linux server and install various software packages, including those provided by Orcfax. Additionally, participants should be capable of updating both the operating system and any installed software packages to maintain security and functionality.
While it is not a requirement at the outset, having experience operating a Cardano Node, with an understanding of its underlying protocols, is recommended in order to facilitate a smoother adaptation to the ITN environment.
ITN rewards
ITN participants will operate software that initially collects, later validates, and ultimately publishes Fact Statements on-chain. The completion of each of these functions by participants will be recorded and used as metrics for the calculation of $FACT rewards throughout the ITN.
Monthly rewards
For each month of the ITN, a specific amount of FACT tokens will be allocated for validator rewards. The first month will make 1,500,000 $FACT available for ITN participants to claim. This amount will be adjusted monthly to balance the rewards, based on the required effort and actual validator participation.
Non-validator rewards
All Orcfax $FACT holders were invited to vote on the first-ever Orcfax proposal: the implementation of rewards for $FACT holders. The proposal passed. More than 28 million $FACT voted in favor of rewarding $FACT holders, and the results can be found here.
Orcfax facilitated this community vote in alignment with our decentralization goals, and to allow opportunities for community members to participate in (and shape) the future of the Orcfax network.
This proposal was requested by community members and introduced rewards for $FACT holders who may not have the capacity to join the Orcfax network as a validator, yet wish to receive $FACT rewards for locking (and not moving) their FACT tokens.
Orcfax is investigating methods to implement non-validator staking for the initial version (V1) of the validator network.
Rewards calculation method
Rewards will be calculated based on the daily number of collections, validations, and publications, multiplied by each validator’s ITN multiplier.
The actual rewards accrued per validator will be proportional to their participation in a given day relative to all other validators.
Example
if a validator has collected 5% of all Fact Statements on a specific day, they will receive 5% of that day’s available rewards (after applying the ITN multiplier). This method ensures that optimal uptime and efficient validator setup will yield the highest possible rewards.
Validators will be able to use the Orcfax Validator Dashboard to track their metrics and corresponding rewards. You can find a basic ITN rewards calculator here.
Maintenance periods
During announced maintenance periods, such as when Orcfax transitions to a new ITN phase or addresses specific issues, no rewards will be distributed. Excess rewards not distributed for a given month due to these situations will be moved back to the validator allocation.
If validators are unable to earn rewards due to unscheduled maintenance or unexpected issues, they will receive equal rewards for those days.
Example
If on a given day there are 60 registered ITN participants, and the network experiences unscheduled maintenance or unexpected issues, the available rewards for that day will be equally divided among the 60 participants.
Claiming rewards
As participants accumulate rewards, they will be able to track them on our Validator Dashboard, and will be able to claim their accrued rewards at any given time.
This approach prevents scheduled monthly releases that might affect price action and cause more volatility.
To claim rewards, participants will need to:
- Send a small amount of ADA to a given address (covering the minimum UTXO and transaction fees)
- Shortly after, participants will receive their $FACT rewards.
This process can be repeated as often as a validator wishes to claim their rewards.