Socializing Pool

To understand the Stader node Socializing pool and its functionality, it's important to grasp the concept of EL-Fee recipients and the benefits of the Socializing pool for node operators. In the following section, we explain EL-Fee recipient rewards, the Socializing pool, and the process of opting in and opting out.

EL rewards (Priority and MEV rewards) - Fee Recipient

The node operators on Ethereum receive MEV and priority rewards for the transactions they include in blocks they propose on the Ethereum chain. These rewards come from the Execution layer and cannot be sent directly to the validator's address which is on the Consensus layer or the operator reward address on Stader node. To solve this, when you propose a block on the Ethereum chain, you need to specify where the fees from each transaction should be sent. This is done through an mechanism called the Fee Recipient, which is an address on the Execution layer created by Stader Node when you register and add you validator on the Stader network.

Stader node is designed to distribute these rewards fairly between you and the ETHx pool stakers, just like it does with Beacon chain (CL) rewards . Your share of MEV and priority rewards will go to you, while the rest will go to the ETHx pool stakers. To handle this, Stader automatically sets your node's fee recipient to either the Socializing Pool (by default) or your own personal Fee Recipient address which is created by Stader Node (if you choose to opt out of the Socializing pool).

The Fee Recipient is a special contract linked to your node that collects and divides your MEV and priority rewards between you and the ETHx pool stakers. It acts as a secure vault for these rewards, and the node operator or Stader can transfer the balance to the claim vault at any time to ensure that the rewards are always accessible to ETHx stakers and the node operators.

What is socializing Pool?

The Stader node offers a unique feature called the Socializing Pool, which is available for node operators to opt into. By choosing this option, the Socializing Pool becomes the Fee Recipient for all node operators who participate in the Socializing pool, pooling together the MEV and priority rewards from their proposed blocks. At regular intervals (currently every 28 days), the accumulated ETH balance in the Socializing Pool is distributed fairly among the node operators who have opted in and the ETHx pool stakers.

The Stader node Socializing Pool aims to eliminate the unpredictability associated with being selected for block proposals. If you have experienced a long period without a proposal or have consistently received low priority fees transactions for your blocks, you may find the Socializing Pool particularly appealing. In simple terms, if there are more validators in the Socializing Pool than you have individually, joining it increases your chances of benefiting from the MEV and priority rewards related block proposals.

Opting into the Socializing Pool is done at the node level, meaning that if you choose to participate, all of your validators are automatically included. The Socializing Pool calculates the "share" of each validator owned by every opted-in node. This share is determined based on the performance of your validators during the interval, taking into account the number of attestations you sent on the Beacon Chain and the number you missed. The total share of your node is the sum of the shares of all your validators. The duration for which you opted in also affects your node's total share, where being opted in for the entire interval grants you your full share, while being opted in for a certain percentage (X%) of the interval entitles you to X% of your full share.

How to OPT-IN and OPT-OUT of Socializing pool?

You can Opt-In and Opt-Out of Socializing pool using the following commands:

  • Opt-In: ~/bin/stader-cli node update-socialize-el --socialize-el true

  • Opt-Out: ~/bin/stader-cli node update-socialize-el --socialize-el false

Note: The Opt-In and Opt-Out of socializing pool will have a cool-off period of 56 days. i.e you will have to wait for 56 days to Opt-Out of the Socializing pool once you Opt-In and vice versa.

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