Benefits of Running a Shardeum Validator Node on Mainnet
Discover the top benefits of running a Shardeum validator node on mainnet, including early adopter rewards, low-cost entry, and supporting network...
Discover the top benefits of running a Shardeum validator node on mainnet, including early adopter rewards, low-cost entry, and supporting network...
This blog explores the benefits of running a Shardeum validator node (including standby nodes) as Shardeum prepares for its mainnet launch. Initially, Shardeum will support P2P/on-chain transactions and validator functionalities followed by smart contract and autoscaling functionalites later in 2025. Shardeum will operate archive nodes during its early stages, and will manage SHM supply equilibrium by distributing node rewards and burning transaction fees, gradually positioning SHM as a scarce asset. Over time, these responsibilities will be decentralized for a sustainable network governance and growth.
On Shardeum, three main types of nodes are operated by the community:
Validator nodes order transactions on a FCFS basis and validate them by actively participating in the consensus process. They store only the state of the accounts/shards they manage, keeping them light, while historical data is offloaded to archive nodes. Validators must stake SHM to participate. Non-compliance with network protocols results in slashing penalties, while honest and compliant validators earn SHM rewards.
Standby nodes are validators that are not actively participating in consensus but are ready to scale the network during high transaction volumes. They, further, enhance network security and fair participation, by periodically replacing the longest-serving active validators every 60 seconds. Like active validators, standby nodes must also stake SHM to be eligible for activation.
Archive nodes store the complete history of transactions, requiring significantly more hardware resources than validator nodes. Due to the higher storage demands, operators of archive nodes receive greater rewards, as is typical in other blockchain networks. The community will be able to run archive nodes after the initial launch phase.
Shardeum’s validator nodes function similarly to Lightweight/SPV nodes on other blockchains but with enhanced capabilities, including validating transactions and participating in consensus. Unlike traditional PoS networks that select a leader validator to propose and verify transactions (earning a good chunk of the rewards), Shardeum’s consensus mechanism avoids leader selection, allowing public participants to validate and earn rewards. This ensures a more decentralized and fair reward distribution.
Validators contribute to various internal operations, such as detecting lost nodes, maintaining nodelist synchronization, implementing the timestamping algorithm, and interacting with archive nodes. However, their primary role is to order, verify, and process transactions.
Shardeum’s unique approach to linear scalability offloads transaction history maintenance to archive nodes. This reduces hardware requirements for validators, offering a low-cost entry point with the potential for attractive returns.
As Shardeum approaches its mainnet launch, early adopters have the exclusive opportunity to purchase and operate genesis nodes. Genesis node holders will be among the first to participate in transaction processing, ensuring the security and reliability of user data and assets during the initial phase of the mainnet. Once the network achieves established standards of security and stability, other participants will also be able to stake SHM and join the consensus process, further distributing the network. Stay tuned to official updates on this topic coming soon.
In the community, it’s often said that “anyone can run a node on Shardeum.” True to this vision, Shardeum is designed to make blockchain technology accessible to everyone, allowing users to participate in the consensus process and validate transactions using their existing computer resources. Unlike many other blockchains that require advanced hardware or expensive VPS subscriptions due to vertical scalability limitations, Shardeum’s horizontal scalability approach keeps hardware requirements low.
To participate as a validator, you’ll need to stake 2,400 SHM. Shardeum is actively exploring ways to further lower entry barriers, with more details to be shared soon.
You also have flexible hosting options, including self-hosting, VPS (cloud hosting), and one-click node setups, enabling anyone—even those without technical expertise—to contribute to the network. This flexibility and affordability make it feasible for a wider audience to participate in decentralization and benefit from the network’s growth.
Shardeum’s unique scalability model uses standby nodes to dynamically scale with network demand while ensuring fairness through the rotation of active and standby nodes. When a node joins the network and stakes the required SHM, it first enters the standby pool. Nodes are then randomly selected from this pool to participate in transaction validation. The longer a node remains in the standby pool, the greater its chances of being selected for active validation and building strong reputation.
Why is this significant? Standby nodes become eligible for rewards once they successfully complete their active validation period. Since Shardeum scales horizontally, maintaining a sufficient number of nodes at all times is crucial for network stability and security. To ensure this, Shardeum’s tokenomics and issuance model are designed to provide validators with a reasonable return on investment, compensating them for the resources they contribute.
Additionally, transaction fees paid by end users are burned, promoting the scarcity and deflationary potential of SHM over time. This approach not only incentivizes node participation but also helps the value of SHM.
Validators on Shardeum will gradually gain governance rights as the network evolves toward full decentralization. Over time, validators can expect to be able to vote on network upgrades, changes to consensus mechanisms, and policy decisions, much like Ethereum validators vote on protocol changes through EIPs.
This aligns with Shardeum’s core principle of being Open, Collaborative, and Community-Driven (OCC). By empowering validators with governance rights, Shardeum ensures that key network participants have a meaningful role in shaping the network’s future, influencing developments that enhance scalability and user experience.
Security is a top priority for Shardeum, as with any Layer 1 blockchain. Validators play a critical role in ordering and verifying transactions, maintaining data integrity, and preventing fraudulent activities and MEV (Miner Extractable Value) through Shardeum’s Proof of Quorum (PoQ) consensus mechanism and Proof of Stake (PoS) sybil deterrence.
Unlike traditional models where all nodes participate in consensus, Shardeum reaches consensus with only a subset of nodes, resulting in lower finality and latency times—a performance benchmark that rivals Web2 platforms, enabling the network to support high-demand applications such as trading platforms and NFT marketplaces.
Additionally, validators contribute to network stability by offloading transaction history to archive nodes, which is essential for maintaining immutability and enabling efficient data restoration when needed.
Shardeum aims to be the first blockchain to solve the scalability trilemma while maintaining a high degree of decentralization and making blockchain participation affordable and accessible to everyone. Thanks to Shardeum’s ability to autoscale up or down based on network demand, it will consistently maintain low transaction fees. By running a validator node, you actively contribute to this movement, helping to advance the vision set by pioneers like Bitcoin and Ethereum.
If you missed the opportunity to participate in early blockchain networks due to high financial or technical barriers, Shardeum provides a welcoming entry point with lower costs and simple node setup.
Here’s a general overview of how rewards are calculated, with final details being fine-tuned for the mainnet launch.
The Reward Formula for active nodes is:
Node Reward Allocated per Hour × Number of Hours Spent as an Active Node
To estimate your potential earnings under different scenarios, visit the simulations section on our tokenomics page. You can experiment with various settings to see how they might impact your returns.
APY details on staked SHM will follow soon.
Begin by setting up your node by clicking the button below. While Shardeum is currently in its testnet phase, this is the perfect opportunity to familiarize yourself with the network, provide valuable feedback, stress test new features, and play an active role in shaping the project’s future from the very beginning.
In late November 2024, we conducted a survey to understand our validators’ preferences, including hosting choices for running a Shardeum testnet node. In this blog, we shared the anonymized survey results to provide valuable insights for both current and future validators. Discover how affordable the hardware requirements truly are and learn about the most cost-efficient node hosting solutions used by the community. Keep in mind that trends may evolve as providers compete to offer better solutions to users.
Shardeum’s testnet has already attracted over 100,000 validators from more than 80 countries, demonstrating the growing global community supporting Web3 and decentralization. Now is the perfect time to join the movement, as you’re still early in the journey to revolutionize industries and empower individuals worldwide—much like the transformative impact of mobile phone technology.
By becoming a Shardeum validator, you play an anchoring role in bringing blockchain technology and decentralization to the mainstream. You’re not just participating—you’re co-owning the project, ensuring its evolution remains in safe, community-driven hands. Take an active role in Web3’s vision of a user-controlled internet. Your participation in Shardeum decentralizes power and builds a more inclusive digital economy for generations to come.
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