Axelar: Proof of Stake, Validators, and Incentives
The Cosmos SDK, an open-source toolkit developed for cross-chain interoperability, is the foundation for Axelar’s Delegated Proof of Stake (DPoS) blockchain. Axelar can validate source chain requests and ratify destination chain changes using the Tendermint consensus method. This consensus approach guarantees instant finality and Byzantine fault tolerance, both essential for safe cross-chain communication.
Axelar, on the other hand, may connect several types of consensus, such as EVM and Cosmos chains. As a result, Axelar is one of the few cross-chain protocols capable of supporting interoperability across these various consensus processes, allowing for a more seamless and integrated decentralised web.
Axelar is in charge of routing and execution. On the other hand, the relayer aspect is permissionless, meaning that developers can construct their own version of relayer services rather than utilising Axelar’s default relayer if they like.
Understanding the TM consensus reward slashing rules and validator responsibilities
The standard TM reward-slashing regulations, which dictate that validators forfeit rewards if they lack liveness, are conventionally accepted. Validators must sign at least 50% of the blocks in a 35,000-block window, which is comparable to keeping the system operational for at least one day in a two-day window. A validator’s downtime results in a 0.01% loss of rewards per block, while double-signing of blocks results in a 2% loss of awards. A seven-day unbonding period has been imposed by the Axelar Network.
The broadcaster account’s liveness is notified in the multi-party signing protocol (MSig) protocol via “heartbeat” messages delivered by validators every 50 blocks. If an “active” validator fails to engage in MSigs, they are barred from participating in MSigs for 8,500 blocks and forfeit their collected incentives.
Validators who have registered as chain maintainers can vote on events for external chain voting. Voting power is proportional to the percentage of the total stake allotted to them. Validators who received the most votes had their incentives released. To encourage participation and good behaviour, validators who do not vote or cast the minority vote forfeit their collected incentives.
Gas
Unlike many other multi-chain interoperability networks, which demand users to keep gas tokens on both the source and destination chains, Axelar’s approach to gas payments is unique. As an alternative, Axelar enables users to utilise the destination token to pay gas fees once on the destination chain. Axelar, a blockchain that links other blockchains and can handle smart-contract logic, makes this possible. Axelar’s gas services readily handle all necessary conversions as part of the cross-chain transaction flow:
- The validators of Axelar are compensated with AXL coins
- The source-chain token for gas is then created using AXL tokens
- The gas pays for operations on the destination chain, such as token mints and function calls
By removing the need for users to store numerous gas tokens and allowing them to utilise the destination chain’s token instead, this strategy streamlines the user experience.
