Validator Rewards

Validators accumulate rewards in two distinct forms:

Consensus Layer Rewards: These rewards are earned by validators for their active participation in the BNB network's consensus mechanism. Validators receive these rewards for performing duties such as attesting to blocks, proposing blocks, and engaging in sync committees. These rewards are issued as new BNB tokens to the validator's balance on the Beacon Chain. Withdrawal options include partial withdrawals (any amount above the initial RADIUM stake) at regular intervals or full withdrawals (the entire stake) when the validator exits the network. Withdrawn rewards or stake are directed to the BNB address linked to the staker's withdrawal credentials.

Execution Layer Rewards: These rewards are obtained for executing transactions within the BNB network as part of block proposals. They encompass priority fees, which are fees paid by users for the inclusion of their transactions, and MEV rewards, earned for arranging transactions in a manner that benefits the validator. Execution layer rewards are directly sent to the BNB address specified by the staker as their fee recipient address and are instantly accessible.

Fee Recipient Address and RADIUM: On the RADIUM platform, stakers have the flexibility to designate a fee recipient address to receive their execution layer rewards. This specified address applies to all validators within the staker's account. By default, the fee recipient address is set to the account owner's address.

Whenever the operators of a validator cluster fulfill a block proposal duty for a staker, they collectively agree that the validator's fee recipient address should align with the one designated by the staker. This consensus mechanism ensures that even if a dishonest operator attempts to alter the address, they cannot execute the duty without the agreement of the majority of operators within the validator cluster.