DMD Diamond Validators: Self-Hosted Validator Node vs Using the Configurable Node-Operator Share Option

The release of the DMDv4 mainnet offers a more flexible validator system, which is centred around creating a validator pool. Whether you are running your own validator node or using a third-party validator node operator, you end up becoming a validator by creating a pool through the web-based Diamond-UI DApp. The difference only lies in; who is operating the validator node and how epoch rewards are shared.

This article explains the two validator pathways: 

1. Self-hosted validator
2. Taking advantage of the configurable node-operator share option

Self-hosted validator (Running Your Own Validator Node)

This approach is for technical-savvy users or those willing to follow our official DMDv4 mainnet guide to set up, run, and maintain their validator node.

How does it work? 

1. Set-up and run your DMDv4 and validator nodes by following the official mainnet guide. 
2. Copy out your public miner address from your node logs on your server. You can use the command query provided in the mainnet guide to get it.
3. Open the Diamond-UI and create your validator pool using your copied public miner address.
4. Stake the required amount (Minimum of 10, 000 DMD,  Maximum of 50, 000 DMD)
5. Confirm your transaction in your Web3 wallet (like Metamask, etc.) using the appropriate gas fee.

Who is this right for? 

• DMD Diamond blockchain users who prefer full technical control.
• Any users comfortable running their own server software.
• Users who prefer managing their own uptime and validator performance.

Advantages

• Full operational independence.
• You control your node, security, and updates.
• No epoch revenue share with a third-party node operator.

Using Configurable Node-Operator Share Option (Third-party Operated Validator Node)

This use-case is for DMD Diamond coin holders who want to become validators on the network, but can’t run or willing not to run their validator node themselves. A major misconception could be whether the configurable node-operator share option replaces the need to create a pool or not. It ultimately ends in creating a pool on the same Diamond-UI to become a validator on the network. The whole process is identical to running your own validator.

How does it work? 

1. You hired a third-party node operator or hosting provider to run the validator node for you. You can find one on our dedicated channel on the discord!
2. Your hired node operator gives you the public miner address of the node created for you.
3. Open the Diamond-UI, and create your validator pool using the public miner address received. This makes you the validator owner, while he operates the node on your behalf.
4. Use the configurable node-operator share embedded link on the Diamond-UI to set a node-operator share percentage. This clearly defines what percentage of the validator-owner’s rewards will go to the node-operator as compensation. Node Operator share can be 0.01% – 20% (20% means 100% of the node owner reward). For Instance, If you receive 20% validator-owner rewards upfront, and you set a 10% node operator share, then half of your validator-owner’s rewards go to your node-operator.
5. Stake the required amount (Minimum of 10, 000 DMD, Maximum of 50, 000 DMD)
6. Confirm your transaction in your Web3 wallet (like Metamask, etc.) using the appropriate gas fee.

Who is this aimed at? 

• Non-technical DMD Diamond coin holders and users.
• Members who want passive validator income.
• Any users who prefer a validator hosting provider.

Advantages

• No technical knowledge needed.
• Your node-operator ensures uptime, updates, and stability.
• You remain the validator owner while only sharing a chosen percentage of rewards to the node-operator.

Conclusion

On the DMD Diamond blockchain, becoming a validator ends with creating a pool via the Diamond-UI. However, the difference is who the node operator is, whether it is you or a third party. When you run your validator node yourself, it offers you full responsibility, full control, and full epoch rewards. Using the configurable node-operator share option means you are delegating all technical works relating to node operatorship to a third-party or professional, while you remain the validator owner. By this design of our blockchain, all users, either tech savvy or not, can participate in securing and strengthening the DMD Diamond blockchain based on their abilities, and get rewarded in return.