**NOTE: all ```CODEBLOCKS``` can be deleted while answering the questions**

# **NOTE: all ```CODEBLOCKS``` can be deleted while answering the questions** **We proposed an answer for the first question, feel free to use it, change it or just delete the answer** # Luksoverse x LUKSO Mainnet FAQ Questions: ## Validator Downtime and penalites: ### What is the mechanic behind penalties and slashing for validators? How big are the penalties for a validator that is offline? As a validator you are rewarded for proposing / attesting to blocks that are included in the chain. On the other hand, you can be penalized for being offline and behaving maliciously—for example attesting to invalid or contradicting blocks. **The key concept is the following:** Rewards are given for actions that help the network reach consensus. Minor penalties are given for inadvertent actions (or inactions) that hinder consensus. And major penalities—or slashings—are given for malicious actions. In other words, you maximize your rewards by providing the greatest benefit to the network as a whole. In addition to the impact of effective balance (Ethereum related, but applies to LUKSO as well) there are two important scenarios to be aware of: - Being offline while a supermajority (2/3) of validators is still online leads to relatively small penalties as there are still enough validators online for the chain to finalize.If you go offline for a number of days under these normal conditions you will lose an amount of LYX roughly equivalent to the amount of LYX you would have gained in that period. In other words, if you stood to earn ≈0.01 LYX, you would instead be penalized ≈0.01 LYX. This is the expected scenario. - Being offline at the same time as more than 1/3 of the total number of validators leads to harsher penalties, since blocks do not finalize anymore. This scenario is very extreme and unlikely to happen. Note that in the second (unlikely) scenario, you stand to progressively lose up to 50% (16 LYX) of your stake over 21 days. After 21 days you are ejected out of the validator pool. This ensures that blocks start finalizing again at some point. Overall, we'd expect your validator to be net profitable as long as your uptime is greater than 50% (Ethereum related, but applies to LUKSO as well). This means that you don't need to go to extreme lengths with backup clients or redundant internet connections as the repercussions of being offline are not so severe. Behaving maliciously—for example attesting to invalid or contradicting blocks—will lead to your stake being slashed. The minimum amount that can be slashed is 1 LYX, but this number increases if other validators are slashed at the same time. The idea behind this is to minimize the losses from honest mistakes, but strongly disincentivize coordinated attacks. **Slashing has two purposes:** 1 - to make it prohibitively expensive to attack the network. 2 - to stop validators from being lazy by checking that they actually perform their duties. If you're slashed because you've acted in a provably destructive manner, a portion of your stake will be destroyed. If you're slashed you're prevented from participating in the protocol further and are forcibly exited. ## Validator rewards, withdrawals, and lock-up period: ### Is there going to be a single withdrawal key for multiple validators or will every validator have its own unique withdrawal key? ``` ``` ### Does the amount of validators ran per node influence the percentage reward? Also, if there is a very large number of validators running on a single node. ``` ``` ### Are there going to be lock-up periods for the staked coins? If so, will a lock-up period only affect the 32 LYX or also the additional rewards? ``` ``` ## Node performance requirements: ### Is it possible to run 2 nodes on 2 separate devices from the same location/IP? ``` ``` ### How fast will the size of the blockchain grow? Will it be the same as l16? Or faster as the mainnet will have more transactions? ``` ``` ### Is there a way to save the chain regularly to save time on synching when you need to reset your node? ``` ``` ### Does the performance of the node pc influence the rewards? ``` ``` ### What are recommended and minimum specs for a LUKSO mainnet node pc? Do you have any specific hardware and operating system recommendations? (Laptop yes/no, intel NUC, mac OS, Linux etc.) ``` ``` ## Validator setup and setup guide: ### What is the easiest way of participating as a validator if you have only limited technical knowledge? ``` ``` ### Is there going to be an Avado or Dappnode integration for LUKSO? If so, can we expect it with mainnet launch or afterward? ``` ``` ### Will it be possible to predetermine an address for multiple validators to which all rewards will be sent? ``` ``` ### Will there be a more detailed guide on how to set up a node for the mainnet, possibly a video guide? ``` ``` ## Node and Validator Configuration and safety: ### Which will be the different clients that a node operator can choose from? What are the benefits and drawbacks of these? Are there clients that are better suited for nodes with a large number of validators? ``` ``` ### What is regarded as the best practice for node security? (Firewall, system settings, what to password protect etc.) ``` ``` ### What is regarded as the best practice for key security? How many different keys do you get when running a node and have to keep safe? ``` ``` ### What is the worst that can happen if a bad actor gets access to my node pc? Is it possible to get access to the staked funds without the key but with access to the machine? ``` ``` ### Are there any additional safety measures that can be taken when my node is located somewhere where a 3rd party can have relatively easy physical access? ``` ``` ### Is it possible to password-protect the process of creating a validator recovery file? ``` ``` ### A question relevant to larger holders: how many validators would you like to see max per node? ``` ``` ### A question relevant to larger holders: If you run multiple nodes is it recommended to run different clients? ``` ``` ## Mainnet start and voting process: ### What will the mainnet configuration's voting process look like in practice? ``` ``` ## Miscellaneous: ### As the new testnet will only be for a limited group of validators, is there going to be a way for potential new validators to test the validator procedure on a testnet? ``` ``` ## LYXe LYX conversion: ### What is the process of converting LYXe to LYX going to look like? In which cases will it require action from the individual holder? ``` ``` ### Will LYXe be deprecated post-migration, or will it survive as the officially wrapped LYX on Ethereum, with the migration dapp serving as the official bridge to move LYX(e) back and forth between LUKSO and Ethereum? ``` ``` ## Additional not Mainnet-related questions: ### Will there be a reveal of the current advisors and other LUKSO partners with mainnet launch? ``` ``` ### Is there still work being done on a mobile app? If so will it be released with mainnet and which role will it play, just an alternative to MetaMask, or will it have additional features? ``` ``` ### Germany is having a discouraging legislation for running a node privately. It is assimilated as a commercial activity that need to be registered that lead to heavy process, monitoring, and that create huge financial and return risk (double taxation, VAT unclear, assets management and monitoring on real time, etc.). As lukso is a native German blockchain aiming at 100% decentralization, I was wondering if there is any discussion or alternative for LUKSO for those running a node in Germany? The current regulation making validator at high tax and financial risk ``` ``` ### Is there going to be a grants program? If so can you provide more details? ``` ``` ### Could you provide an update on the Shopify integration? ``` ``` ### Will there be a community event or party after mainnet? ``` ```