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Validator Registration Burn

Monolythium requires validators to permanently burn LYTH tokens as part of registration. This mechanism ensures economic commitment and provides Sybil resistance.

Overview

ParameterValue
Burn amount100,000 LYTH
TypePermanent (non-refundable)
EnforcementAnte handler in x/mono module
AdjustableYes (governance proposal)

How It Works

When a validator submits a MsgCreateValidator transaction, the x/mono ante handler decorator intercepts it and enforces the burn:

MsgCreateValidator

├── 1. Ante handler checks burn deposit parameter
├── 2. Burns required LYTH from validator's account
├── 3. Records burn in module state
└── 4. Proceeds with standard validator creation

The burn is permanent — tokens are sent to an unspendable address and removed from circulating supply.

Purpose

Sybil Resistance

Without a burn requirement, an attacker could create many validators cheaply. The 100,000 LYTH burn makes this economically prohibitive.

Long-Term Commitment

Unlike refundable deposits, a burn is irreversible. This signals genuine commitment to the network.

Deflationary Contribution

Validator burns permanently reduce supply, contributing to Monolythium's deflationary design alongside the 90% fee burn.

Total Cost to Validate

RequirementAmountType
Self-delegation100,000 LYTHRecoverable (after unbonding)
Burn deposit100,000 LYTHPermanent (destroyed)
Total200,000 LYTH

Querying Burn State

# Check x/mono parameters (includes burn requirement)
monod query mono params

# Check total validator burns
monod query mono burn-total

Governance Adjustability

The burn deposit amount is a governance parameter. It can be increased or decreased through a standard governance proposal:

  1. Submit a ParameterChangeProposal for the mono module
  2. 14-day voting period
  3. 33.4% quorum, 50% approval threshold
  4. New amount applies to future validator registrations only

Existing validators are not affected by changes to the burn requirement.

FAQ

Is the burn refundable if I stop validating?

No. The burn is permanent regardless of whether the validator remains active.

What if validators unregister?

Their burn contribution remains counted. The tokens are permanently destroyed.

Can governance remove the burn requirement?

Technically yes, by setting it to 0. However, this would significantly weaken Sybil resistance.

Does the burn count toward self-delegation?

No. The burn is separate from the 100,000 LYTH self-delegation requirement.