Crowdfunded Validator

Crypto terminology for crowdsourced governance refers to the specific words and phrases used to describe decentralized decision-making processes, allowing community members to participate in governance effectively.

A crowdfunded validator is a participant in a blockchain network that uses a pooling method to gather funds for validating transactions. In many networks, validators are responsible for confirming and adding new transactions to the blockchain. This often requires a significant amount of capital to operate effectively.By pooling resources from multiple individuals, crowdfunded validators allow smaller investors to contribute to the validation process without having to meet the high capital requirements on their own. Participants typically contribute a portion of their funds, which together can meet the necessary staking prerequisites.This approach democratizes participation, enabling more people to take part in securing the network and earning rewards. The rewards earned are usually distributed among the contributors based on their share of the pooled investment. Crowdfunded validators promote community engagement and foster a sense of teamwork among participants, as they collectively work towards common goals while sharing in the risks and rewards of their investment.

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