Delegated Validation Node

Of the 2,500 Validation Nodes in the network, one is reserved as a Delegated Public Validation Node. This node exists to allow MNTx holders who do not own a private node to participate in the infrastructure economy by delegating their tokens to a shared, publicly accessible Validation Node.

The delegated model works by pooling staked MNTx from multiple participants into a single operating node. Each participant earns a proportional share of the rewards generated by that node's validation activity, based on the size of their stake relative to the total pool after a 50% burn. This gives smaller holders access to the same reward mechanics that private node operators benefit from, without the requirement to acquire a full node or meet the infrastructure and hosting obligations that come with operating one directly.

This design materially broadens participation in the network's reward economy. Without it, only participants with enough MNTx to meet the 10,000 MNTx minimum for a private Validation Node or 50,000 MNTx for a Switch Node could earn infrastructure rewards. The Delegated Validation Node removes that barrier, meaning the rewards economy is not confined to full node owners but extends to the wider holder base through pooled infrastructure exposure.

Rewards earned through the Delegated Validation Node fall within the 60% staker allocation and are subject to the same algorithmic burn calculation that applies to all staked positions across the node network. However, there is an additional 50% burn on the staking rewards generated by the delegation node stakers, to ensure a fair system for the privately held node owners.