Requirement

Hardware Requirements

System: Ubuntu 20.04

• CPU - 4 core (3.2GHZ above)

• Memory - 16GB

• Storage - 200GB SSD

• Bandwidth - 10 Mbps above

Tip: CPU frequency lower than 3.2GHZ may affect the normal block generation of collator. Storage recommendation is using an SSD that supports the NVMe protocol.

Operating System

Ubuntu 20.04 LTS

Operating Procedures

Kusama Mainnet

• Delegator

  1. Create a BNC Address

  2. Enter the Bifrost Dapp (Mainnet) and delegate to a Collator

• Collator:

  1. Create a BNC Address

  2. Run Collator Node & Map SessionKey in the Bifrost mainnet (https://polkadot.js.org/apps/?rpc=wss%3A%2F%2Feu.bifrost-rpc.liebi.com%2Fws#): Guidance

  3. Check your Collator at Bifrost Dapp (switch to Mainnet)/ Telemetry

  4. Get Delegation

  5. Successfully generate blocks and enter the active Collator set to get Commission rewards

Stagenet

• Delegator

  1. Create a BNC Address

  2. Receive faucet test BNC: https://t.me/bifrost_faucet

  3. Enter Bifrost Dapp (switch to Bifrost Stage Network) and delegate a Collator

• Collator:

  1. Create a BNC Address

  2. Receive faucet test BNC: https://t.me/bifrost_faucet

  3. Run Collator Node & Map SessionKey in the Bifrost pre-production environment (wss://bifrost-rpc.testnet.liebi.com/ws): Guidance

  4. Check your Collator at Bifrost Dapp (switch to Bifrost Stage Network)/ Telemetry

  5. Get Delegating

  6. Successfully generate blocks and enter the active Collator set to get Commission rewards

Operation Cycle

The Collator system has its own running cycle, 600 blocks in a round, each round takes about 2 hours, and the cycle is related to the operations of reward settlement, addition, and unbonding.

Kusama Mainnet

Variable	Parameter
Leave Candidate Pool	84 rounds (168 hours)
Remove Nominations	84 rounds (168 hours)
Reward distribution (after the current round)	2 rounds (4 hour)

Stagenet

Variable	Parameter
Leave Candidate Pool	24 rounds (12 hours)
Remove Nominations	24 rounds (12 hours)
Reward distribution (after the current round)	2 rounds (1 hour)

Basic Parameters

Glossary

• Collator: Collator runs a full node on Bifrost parachain and Kusama relay-chain, and produce the state transition proof for relay chain validators.

• Active set: A set of Collators who can receive commission by producing blocks, choosen by the ranking of delegating amount.

• Candidates: Collators who are out of the active set.

• Collator self bond: Self-bond as a minimum BNC to be a Collator, continue self-bond same as delegating.

• Delegator: Bifrost token holders who stake tokens, vouching for specific collator candidates on the parachain.

• Delegate: Bond BNC Token for Bifrost Collators, receiving delegating rewards depends on the rank of Collator and delegating amount.

Collator

• Maximum number of active Collators and candidates

Kusama Mainnet

Collator	Stage 0	Stage 1	Stage 2
Candidate	Unlimited	Unlimited	Unlimited
Active Collator	16	32	64

Stagenet

Collator	Stage 0	Stage 1	Stage 2
Candidate	Unlimited	Unlimited	Unlimited
Active Collator	16	32	64

• Bonding parameters (Collator)

Kusama Mainnet

BNC Staking Conditions	Quantity
Candidate minimum bond (self bond)	5,000 BNC
Collator maximum bond (self bond)	Unlimited
Minimum Total Delegating Amount for Active Collator (Delegating)	5,000 BNC

Stagenet

BNC Staking Conditions	Quantity
Candidate minimum bond (self bond)	100 BNC
Collator maximum bond (self bond)	Unlimited
Minimum Total Delegating Amount for Active Collator (Delegating)	100 BNC

• Others

Kusama Mainnet

Variable	Parameter
Collator exit	84 rounds
Maximum number of delegators	Unlimited
Add self bond	Effective immediately
Reduce self bond	84 rounds
Reward distribution	Collectors receive rewards for the first 2 rounds at the end of each round (600 blocks)
Punishment	No Penalty, reward deduction if there is missing for effective block producing.

Stagenet

Variable	Parameter
Collator exit	Exit every 24 rounds
Maximum number of delegators	Unlimited
Add self bond	Effective immediately
Reduce self bond	24 rounds
Reward distribution	Collectors receive rewards for the first 2 rounds at the end of each round (150 blocks)
Punishment	No Penalty

Delegator

• Bonding parameters (Delegator)

Kusama Mainnet

Delegating Conditions	Quantity
Minimum Delegating Amount	50 BNC
Maximum Delegating Quantity	Unlimited

Stagenet

Delegating Conditions	Quantity
Minimum Delegating Amount	5 BNC
Maximum Delegating Quantity	Unlimited

• Others

Kusama Mainnet

Variable	Parameter
Minimum delegating value that can be rewarded	The top 300 Delegators of each Collator can get the reward, more than 300 Delegators do not count for the reward.
Maximum number to delegate Collators	350
Add Delegating	Effective immediately
Reduce Delegating	84 rounds
Revoke Delegating	84 rounds, no minimum revoke limit ((staking rewards continue to be received during unbonding period)
Reward automatic re-delegating	Not available yet

Stagenet

Variable	Parameter
Minimum delegating value that can be rewarded	The top 100 Delegators of each Collator can get the reward, more than 100 Delegators do not count the reward.
Maximum number to delegate Collators	100
Add Delegating	Effective immediately
Reduce Delegating	24 rounds
Revoke Delegating	24 rounds, no minimum revoke limit (no reward during the revoking period)
Reward automatic re-delegating	Not available yet

Collator incentive ratio

Kusama Mainnet

Total 800,000 BNC/Year	Proportion
Collator Commission	10%
Delegator	90%

Stagenet

Total 800,000 test BNC/Year	Proportion
Collator Commission	40%
Delegator	60%

Reward Calculation

Kusama Mainnet

Bifrost network reserved 5% (4,000,000 BNC) of total issurance to incentivize Collator mechanism for 5 years (800,000 BNC/year), with no inflation. The reward for each Round is a fixed 180 BNC. The reward calculation method is as follows.

According to the incentive ratio, the reward for each block is:

Collator: 180/600*10% = 0.03 BNC

Delegator: 180/600*90% = 0.27 BNC

If a collector's total delegating amount is 100,000 BNC and it is in the 64 Active Collator set for the whole year, the average revenue of the Collator is:

Collating Reward: 800,000 x 10% / 64 = 1,250 BNC

Self-bond delegating Reward: 800,000 x 90% / 64 x 5,000/100,000 = 562.5 BNC

Total Revenue: 1,250 + 562.5 = 1,812.5 BNC

APR: 1,812.5/5,000 = 36.25%