Validator Boosting by KGH NFT

When KGH NFTs are staked to a validator node, the validator node gets the reward boost and distributes the validator boost reward to the stakers after deducting a commission fee set by the validator.

The percentage increase in validator rewards per staked KGH NFT can be calculated as the following:

$$R_i=0.4⋅arctan(0.01⋅G_i)$$

where

• $R_i$: the boosting percentage of a validator $V_i$

• $G_i$: the total number of staked KGH NFT on a validator $V_i$

Please note that depending on the performance of the chosen validator and the reward share ratio set by the chosen validator, the reward share can vary. This mechanic encourages NFT holders to engage actively with the network by assessing and selecting validators judiciously. It aligns the interests of the NFT holders with the overall health and security of the Kroma network, ensuring that only the most competent and honest validators are incentivized.