We are announcing an initiative to extend the current set of POA Bridge validators.
The POA-POA20 Bridge is a key component of the POA Core blockchain. It provides increased liquidity of native POA tokens by facilitating transfers to the Ethereum Mainnet in the form of ERC20-compatible tokens (POA20). Currently more than 19 million POA native tokens are locked in the bridge contract and reside on the Ethereum Mainnet. This is 7.5% of the total supply, meaning the bridge contract is the 3rd largest holder of POA tokens.
Reasons for extending the validators set:
- Increase protection of the funds locked on the bridge! At this moment there are only 3 validators. A larger validators set will make an attack on the bridge more difficult.
- To enhance bridge reliability! Additional validators will support transaction relay even if one or two other validators are out of service.
- To improve decentralization! All validators participate in making decisions related to bridge parameters and functionality.
To help new validators with onboarding POA Network will provide:
- Full coverage for bridge transaction fees on both sides: Ethereum Mainnet and POA Core network.
- Assistance with the bridge oracle deployment and configuration. But you still need to dedicate a system to be run 24/7.
Additional news for new validators: We are planning to upgrade the existing bridge contract to support mediators for the Arbitrary Message Bridge (AMB) and POA bridge validators will switch to the new oracle. After migration the bridge will allow validators to collect fees for transactions to relay tokens. Fees may be collected in both directions (ie when bridging POA to POA20 and when bridging POA20 to POA). The fees will be determined by the validators and distributed amongst them.
For example, with a 0.1% transfer fee, the current 19 million tokens transferred from POA - POA20 would have resulted in 19,000 tokens distributed among bridge validators.
If you are interested in becoming a POA Bridge validator, please reply on this post and we will contact you soon.