Inclusion and removal criteria

How the Strategy decides on what validators are included in the JPool Delegation Program

Criteria for adding validators to the Program

The Strategy adds a validator to the JPool Delegation Program if all of the following is true:

• Membership rank above Top 200 (for details, see How membership rank is calculated).

• Uptime over 80% in each of the last 3 epochs (based the stake-weighted average of vote credits).

• Commission on inflation and MEV rewards is under a threshold value (currently 10%).

• Its name and logo are published.

• Not a member of the Superminority group.

• Not blacklisted as a malicious validator (based on internal and external block lists).

Criteria for removing validators from the Program

The Strategy sets a validator for removal from the JPool Delegation Program and removes it in the end of the current epoch if any of the following is true:

• Membership rank falls below Top 350 (for details, see How membership rank is calculated).

• Commission on inflation and MEV rewards exceeds a threshold value (currently 10%).

• Downtime over 20% of the time in the last of the 3 epochs.

• Falls into the Superminority group.

• Blacklisted as a malicious validator (based on internal and external block lists).

If you believe your validator was unfairly removed from the Program, please contact us and we will help you solve the problem.

How membership rank is calculated

JPool validator selection is based on a membership rank. First, validators are filtered to the top 500 by their yield over the previous 10 epochs (apy10). Validators within this set are then ranked based on Community Good and early adoption scores. Validators with higher scores are ranked higher. If multiple validators have identical scores, priority is assigned first to validators with an earlier creation timestamp, and then, if needed, to those with higher apy10. Finally, validators ranked in the top 200 according to this membership rank are selected for inclusion in the JPool liquid staking pool.

Suspicious status

If a validator is flagged as suspicious, its stake is cut by 50%. The suspicious status is assigned if any of the following occurs:

• Raises its commission by a threshold value within one epoch (currently 3%).

• Cumulative commission increases over a certain period exceed a threshold value (currently 3% over 20 days).*

• APY drops by over MaxAPYdrop compared to previous epoch (currently 20%).

• Percentage of low-latency votes falls into Proof 2 range of the Gaussian distribution.**

• Validatos.app sends a warning Suspicious activity with vote accounts.
• Validator removes its published name or logo.

* Commission decresases are not taken into account. This check is in place to prevent validators from temporarily raising their commission at the end of an epoch to steal their delegators' rewards.

** Basically, this weeds out validators tampering with code to vote after the correct block has already been decided upon by others.

Poor performer status

If a validator is flagged as a poor performer, its stake is cut by 50%. The poor performer status is assigned to validators that meet Stakeview's poor performance criteria.