The Shadow Book
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Staking & Collateral
Initial collateral requirements are set at 10,000 $SHDW. In order to earn rewards collateral must be staked and emissions are no longer earned if the collateral is unstaked.
This is subject to change as the Shadow Operator Program leaves the Devnet period and goes fully live on Mainnet.
A warming up and cooling off period exists and exactly mirrors the warming up and cooling off periods of Solana Validators.
As said, the stability of the Solana network and the execution of requests made by Solana users are the highest priorities for Shadow Operators.
To that end, the Shadow Operator smart contract employs a staking mechanism by which Shadow Operators are required to put up "collateral". This was a concept we borrowed from the Filecoin network. It is important, especially in the early Mainnet beta phases of the Shadow Operator program, that Shadow Operators understand the importance of the role they play in the ecosystem.
The collateral mechanism also allows new Shadow Operators to come online and immediately start earning rewards without having to go through a period of earning little to no rewards because they have to do something like attract enough stake first.
Shadow Operators who fail to keep up with their machine, consistently serve requests poorly, or attempt malicious activities, will not only earn less in $SHDW emissions but will also potentially have their collateral slashed.
For more on slashing please see the "Slashing" section.
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