3.3 Consensus Mechanism

3.3.1 Validator and Delegator Rewards

• Staking Incentives: Validators and delegators earn LQDTY token rewards based on
  their stake and contributions to network security.
• Equitable Distribution: Rewards are distributed proportionally, encouraging longterm participation.

3.3.2 Validator Selection and Network Security

• Node Selection Process: A rotating system periodically selects the most trusted and highest-staked nodes as validators.
• Security Framework: The consensus mechanism includes slashing penalties for malicious validators and ensuring the blockchain’s integrity.