Staking and Delegating

MemeCore Chain also has an additional built-in reward contract to distribute non-$M rewards to validators and delegators.

| Validator Election

Validators are divided into 2 different roles:

• Active Validators: These are the top 7 validators at any given time, selected based on their ranking. They have the ability to produce blocks and earn block rewards. The number 7 is set as the validatorCount in the contract, but this can be modified by the governance system in the future.

• Candidate Validators: These are the validators ranked below the top 7. They are not eligible to produce blocks or earn block rewards, but they can still receive delegations to improve their ranking for the next round of selection.

Rankings are updated every 10 blocks, determined by the total amount of tokens staked by delegators.

| System Contract

• System Reward Contract: Delegators can stake $M and meme coins through this contract to help validators achieve a top 7 ranking. It acts as a vault, gathering rewards from each block and distributing them to delegators according to system rules.

• Additional Reward Contract: This contract allows external project teams to store MRC-20 rewards, which are then distributed to delegators using the same formulas as the system rewards.

There are several built-in contracts (i.e., system contracts) to support staking operations, allowing delegators to stake $M and meme coins.

• Validator Set Contract: Responsible for electing validators periodically, this contract also holds validator rewards temporarily.

| Reward Distribution

The 7 active validators equally share 99% of the rewards, with the validator that produces the block receiving an extra 1%. Of the rewards received by validators, 25% is allocated to delegators who staked meme coins, and 75% to those who staked $M Token. The remaining 1% reward is a bonus for the current block-producing validator and their respective delegators.

| Validator Operations

Register Validator

To ensure the security of the network, becoming a validator on the MemeCore Chain requires a minimum self-delegation of $M. $M holders can initiate a RegisterValidator transaction with the Validator Set contract to become a validator.

Reward Collection

When delegators claim their received rewards, a certain percentage is deducted as a fee for the validator. Validators can withdraw these fee rewards.

| Delegator Operations

Delegators are holders of $M or Meme coins who stake their tokens with a validator to share in the rewards. They have the flexibility to choose any active or candidate validator, switch between them, undelegate their tokens, and claim rewards at any time. In exchange, they receive an Xtoken (X$M or Xmemecoin) as proof of their delegation, which can be used within the Memecore ecosystem.