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Documentation Index

Fetch the complete documentation index at: https://docs.superform.xyz/llms.txt

Use this file to discover all available pages before exploring further.

Validator economics are not final yet. Phase 1 is permissioned and does not include the full staking and slashing model described here.
This page covers the validator incentive model and rollout path. For protocol mechanics, use How It Works.

Why validators get paid

Validators provide the PPS updates SuperVaults need to function safely. If updates stop or become dishonest, vault operations degrade quickly. Rewards exist to keep high-quality operators online and aligned with the network.

Rewards

Vault curators pay upkeep fees in $UP for active oracle coverage. Those fees are distributed to participating validators. The intended model is:
  • more stake increases reward weight
  • better participation preserves reward eligibility
  • missed rounds reduce your effective payout
Exact thresholds and rates are governance parameters and have not been published yet.

Staking

Phase 2 is expected to require validators to bond $UP. That bond is intended to:
  • serve as collateral for slashing
  • weight participation and rewards
  • enforce a minimum commitment to stay active

Slashing

Slashing is designed to penalize two categories of failure:
  • misreporting — signing materially incorrect or invalid PPS data
  • insufficient participation — staying below required uptime / contribution thresholds
Exact slash sizes and observation windows are still pending.

Insurance fund

A portion of validator economics is expected to seed an insurance fund intended to backstop depositors if oracle failures cause verified harm. It is not meant to cover:
  • unrelated smart contract bugs
  • strategy market losses
  • immaterial losses below a governance-defined threshold

Rollout phases

PhaseModelStatus
Phase 1Permissioned validator setLive
Phase 2Open bonding, slashing, insurance fund seedingPlanned
Phase 3Governance-managed validator rotationPlanned

Practical takeaway for operators

Treat the current program as operationally serious even before the full economic model is live. Phase 1 may be permissioned, but uptime, correctness, and incident response still matter because the vaults depend on your node behaving like production infrastructure.