January 2, 2025

peaq runtime upgrade: Expanded active node set, commissions, and more

peaq

Community

In a nutshell: peaq just got a major runtime upgrade, which brings major changes to its staking mechanisms. The update expands the active validator cap from 32 to 42, set to gradually grow even further over the coming weeks, opening more opportunities for the community to participate in running the network. The update also increases the cap on the number of delegators to 48 per node, and introduces a variety of other changes, such as reward distribution based on network sessions, not every new block. You can now get even more involved in powering the Machine Economy.

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The more nodes, the merrier

In the Web3 world, it’s a truth universally acknowledged that a blockchain must be, well, decentralized. The more nodes secure its day-to-day operations, the harder it is for any malicious actor to bring it down or otherwise abuse it. And when it comes to securing the backbone of something reaching as deep into the real world as the Machine Economy, the more decentralization, the better.

For this exact reason, peaq’s latest runtime upgrade expands its active validator node pool from 32 to 42. In less technical terms, an entire 42 nodes can now keep peaq running, bunding up new transactions from people and onchain machines into new blocks… And earning rewards too, of course.

Now, remember that participation in the active set is based on the amount of tokens staked by the validator and its delegators — community members backing the node with their tokens. So the active set’s expansion opens up even more opportunities for the community to get involved in running the network. As more validators join the fray, the peaqosystem can handle larger transaction volumes and ensure its backbone remains robust as adoption grows. So over the coming weeks, the number will be gradually increased even further, boosting peaq’s security.

But that’s not it. With the update, the cap on delegators per validator goes up from 32 to 48, also set to grow further in the weeks ahead. This, again, ensures that even more people can participate in making peaq more secure and decentralized. Community is everything, after all, so opening the network up to more delegators makes all the sense in the world.

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Reward distribution tweaks

Yet another major change coming to the staking mechanism with the new update is customizable validator commissions. Now, validators will be able to set their commission rates (here’s a guide how to do it), which enables them to boost their rewards. This added flexibility enables them to adjust their rates to reflect their operational costs or competitive strategies. Meanwhile, delegators, whose rewards the commission will be subtracted from, will be free to choose nodes based on their preferred commission. This update makes the system a lot more dynamic and competitive, enabling all participants to make more informed decisions and giving them more tools.

Yet another change concerns the timing of staking reward distribution. This one might cause some confusion, as the tokens will no longer be coming in as often as they used to. So here is an important change:

With the update, rewards will no longer be distributed with every finalized block. Instead, the rewards will be distributed after every network session.

In other words, the rewards will be added to wallets every few hours, basically, in larger batches than before. This approach makes it easier for the community to manage their rewards and reduces the workload that comes with frequent transactions. You can find the exact formulas for the reward calculation in the updated documentation.

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