In the Sentinel universe, selecting a validator for $DVPN staking is a decision that directly influences your rewards and the network’s security. This article explores the essential criteria to consider in this crucial choice, ranging from technical aspects to community engagement.

What is Sentinel (DVPN)?

Sentinel ($DVPN) is a decentralized VPN network, based on the Cosmos blockchain and the Delegated Proof-Of-Stake (dPoS) consensus, designed to offer privacy and security on the Internet. The $DVPN Coin is at the heart of this system, used to pay transaction fees on the blockchain and as the primary payment method for VPN node services. This approach ensures a secure and resilient infrastructure, promoting a network of private and verifiable services, essential for countering censorship and mass surveillance in the digital world.

The Delegated Proof of Stake Consensus

Transaction validation in Sentinel uses the Delegated Proof of Stake (DPoS) consensus, which distinguishes itself from Proof of Work (PoW) by its more efficient and energy-saving method for validating transactions and creating new blocks.

In a DPoS network, the roles of validators and delegators are important. Validators, after locking up a certain amount of coins as collateral, earn the right to validate transactions. Delegators, on their part, participate in the consensus by assigning their voting weight, based on their own stake, to validators of their choice, thus enhancing the security and efficiency of the validation process.

This approach is advantageous as it significantly reduces energy consumption and improves network scalability. Indeed, under DPoS, a block can be created approximately every 7 seconds, allowing for rapid transaction integration unlike PoW systems which often require several minutes to generate a new block.

The Active Set

In DPoS networks, the active set represents the group of validators elected to validate transactions within the network. This selection is based both on the coins they have staked and the coins delegated to them by other network users. This structure encourages direct coin holder involvement in the network’s life, allowing them to actively determine who contributes to transaction validation.

The delegation mechanism allows users to transfer their coin weight to a validator of their choice. This democratic process strengthens validators’ commitment and accountability to the ecosystem, as their ability to remain in the active set depends directly on community support. Consequently, validators are motivated to act transparently and contribute positively to the ecosystem in order to maintain and increase their delegation support.

Key Elements of Staking

Staking is essential for the proper functioning and security of DPoS networks, offering both a method of transaction validation and an engaging governance system. By locking cryptocurrencies, validators and delegators ensure network stability, while having the opportunity to actively participate in strategic decisions.

Securing the Network
Validators, by locking a minimum required asset, become eligible to validate transactions. In return, they receive rewards for their role in securing the network. Delegators support this process by allocating their coins to validators of their choice, thus indirectly participating in transaction validation and network governance.

Voting Rights
Staking enables dPoS network governance by giving coin holders the power to influence key decisions. By participating in staking, delegators obtain voting rights proportional to the amount of locked coins. It’s important to note that when you delegate your coins, you also delegate your vote to a validator. However, you retain the option to overwrite their votes with your own choices for your portion if you wish. This mechanism allows for direct involvement in the protocol’s direction and updates, promoting a decentralized ecosystem where decisions reflect community interests, ensuring more democratic and responsive network management.

Slashing
However, staking carries risks, notably slashing, where delegators can lose some of their coins if validators they have delegated coins with behave maliciously or negligently. This underscores the importance for delegators to choose their validators wisely, as their choice directly impacts the network’s security and efficiency.

Value Dilution
Moreover, the concept of dilution plays a significant role in staking incentives. Users who choose not to actively participate in the process risk seeing the relative value of their assets decrease compared to those of active participants. This mechanism encourages broader participation and ongoing engagement in securing the network, thus strengthening the overall integrity and reliability of the ecosystem.

Supply Lockup
The goal of maintaining a fixed amount of coins in staking is crucial for a PoS network’s economic health. Indeed, insufficient participation in staking not only leads to significant dilution of coin value for non-participants but also compromises consensus functioning and block validation. If an adequate amount of coins is not staked, it can weaken network security, making the consensus process less reliable and potentially exposing the network to vulnerabilities or attacks.

Delegating $DVPN

Prerequisites for Staking

To start using $DVPN, it is first necessary to have a digital wallet compatible with the Cosmos blockchain, such as Leap Wallet, Keplr or Cosmostation. These wallets allow for transactions and asset management on the blockchain. $DVPN is available for purchase on several exchanges, but availability may vary depending on the platform. New users can consult CoinGecko or CoinMarketCap websites for an up-to-date list of exchanges offering $DVPN. It is also important to differentiate between decentralized exchanges (DEX), offering direct and secure control over assets, and centralized exchanges (CEX), known for their ease of use and accessibility for beginners.

Once $DVPN is acquired, to participate in staking, it is necessary to transfer them to your wallet address on the Sentinel blockchain. If you purchased $DVPN via a CEX, you will need to withdraw them to your wallet. For purchases on DEX such as Osmosis, a direct IBC transfer to your Sentinel address will be required.

After transferring your $DVPN to your address on the Sentinel blockchain, you are ready to move to the next step: staking your coins to contribute to the network’s security and start receiving rewards.

Delegation Process with Leap Wallet

This step-by-step guide will show you how to stake your $DVPN using Leap Wallet, although the steps remain similar for other wallets compatible with the Cosmos Ecosystem.

1. Selecting the Sentinel Blockchain
Open your Leap Wallet and use the button at the top right to display the Sentinel blockchain. This action directly connects you to the ecosystem where you wish to stake your $DVPN.

2. Accessing the Staking Option
Look for and click on the “Stake” button at the base of the user interface. You will access a screen that presents a summary of key staking information on the Sentinel blockchain, including the estimated APY and the amount of coinss already delegated, if any.

3. Selecting a Validator
Press the blue “Stake” button in the center of the screen to open the validator selection menu with a list of validators displayed in random order. As we have seen, selecting validators is important, and we will see the criteria to consider for making a choice in the following section.

4. Staking Form
Once you have clicked on the name of the validator of your choice, a staking form will appear. This is where you will indicate how many coins you wish to delegate.

5. Delegating Coins
In the designated field, enter the number of $DVPN Coins you wish to stake. Ensure you keep a small amount of coins undelegated in your wallet to cover transaction fees.

6. Confirming the Transaction
After entering the desired amount, review your transaction and confirm by clicking on “Review” and then on “Stake DVPN”. A confirmation window will appear a few seconds later to inform you that the transaction has been executed successfully.

7. Finalization
Once the transaction is confirmed, you can close the window by clicking on “Done”. Your $DVPN Coins are now engaged in staking, contributing to the network’s security while generating rewards for you.

Thus, after following these steps with Leap Wallet, your $DVPN Coins now contribute to the security of the Sentinel network, and you begin to accumulate rewards. Choosing a validator wisely is crucial to maximize your earnings and effectively contribute to the network’s security. The next section will guide you through the important criteria to consider when selecting a validator, ensuring that your contribution to staking is as thoughtful as effective.

Criteria for Delegating Your $DVPN

If you are new to $DVPN staking, understanding how to choose the right validator is essential. This section will provide you with key criteria to guide your decision, focusing on the status, engagement, and history of validators. A thoughtful choice not only favors your earnings but also strengthens the overall health of the Sentinel network.

Validator Status

A validator’s status in the Sentinel network falls into three main categories: active, inactive, and jailed. Each status has specific implications on the ability to validate transactions and earn rewards:

  • Active: Validators with enough voting power through delegated DVPN. They actively participate in transaction validation and securing the network, generating rewards for themselves and their delegators.
  • Inactive: Validators not having enough voting power to be active. They do not validate transactions and do not generate rewards, but they can become active again if their voting power increases.
  • Jailed (Imprisoned): Validators punished for malicious behavior or failure to follow the rules. They are temporarily excluded from validation, do not protect the blockchain, and their delegators do not receive rewards during this period.

Technical Indicators

To wisely choose a validator for $DVPN staking, it is crucial to consider several technical indicators available on platforms like Mintscan:

  • Number of missed blocks: Indicates the validator’s current performance. A high number suggests technical issues that could lead to network penalties.
  • Number of delegators: Shows the community’s level of trust in the validator.
  • History of slashing and imprisonment: Informs about past incidents where the validator was punished for failure.
  • Participation in governance votes: Demonstrates the validator’s commitment to important ecosystem decisions.
  • Commission on delegators’ rewards: Financing server costs, where network nodes operate, directly affects delegators’ yields. Higher commissions can lead to reduced profits for delegators.

These technical details allow evaluating the reliability, commitment, and financial impact of collaborating with a specific validator.

Community Engagement

Beyond technical criteria, participation in the community and the Sentinel project is crucial in selecting a good validator:

  • Regular voting on proposals: An indicator of the validator’s involvement in key decisions.
  • Blockchain development: Engagement in technical improvement and Sentinel’s code.
  • Resource contribution: Writing articles and creating resources to promote the project.
  • Active community membership: Participation in Telegram groups and Discord channels to foster community interaction and support.

Active participation in these aspects enriches the Sentinel ecosystem. Connecting with validators via social media provides insight into their commitment and allows direct exchanges with the teams.

Additional Services

Some validators offer complementary services to their primary validation activity:

  • Protection against being “jailed”: Reimbursement of coins to delegators in case of validator failure punished by the network.
  • Restake: Rewards received by delegators activating this service are automatically reinvested, thus increasing their gains through compound interest.
  • IBC relays: Facilitating interconnection with other blockchains in the Cosmos ecosystem, enriching network fluidity and utility.
  • Testnet Participation: Engaging in testnets signifies a validator’s commitment to the project’s development and success, contributing significantly to improvements and future readiness.
  • Full Archive Node: Running full archive nodes is vital for blockchain resilience, as they store the entire transaction history, thereby enhancing data integrity and network support.
  • Validator Setup: It’s critical to consider the infrastructure a validator has in place. A robust setup with quality hardware and secure configurations ensures high service quality and network stability.

These services enrich the staking experience, offering increased security and rewards optimization. Choosing a validator offering these benefits can enhance your participation and yield within the Sentinel network.

In Summary

Beyond technical criteria for choosing a validator for $DVPN staking, engagement and participation in the community are also paramount. Diversifying by choosing several trusted validators reduces risks while supporting engaged actors in the network. This strategy increases your chances of maximizing rewards while minimizing staking-related risks.

Conclusion

In this article, we explored the essential aspects to consider when staking $DVPN, from evaluating validators technically to their active involvement in the Sentinel community. It is crucial to choose validators not only for their performance but also for their active engagement in the ecosystem, which ensures a significant contribution to the network’s security and decentralization.

$DVPN holders must actively involve themselves, carefully evaluate their staking options, and support validators engaged in enriching the Sentinel community in order to maximize their rewards and strengthen the entire ecosystem.

About Foxinodes

This article is written by Foxinodes, a validator in the Cosmos ecosystem committed to simplifying access to blockchain for everyone and actively contributing to educational articles like this one.

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