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How to create and manage Participate clusters

Supported protocols for Participate clusters

Currently Coinbase Cloud supports the following protocols for our Participate product:

 Acala   Eth2   NEAR 
 Algorand   Evmos   Oasis 
 Cardano   Flow   Ontology 
 Celo   Helium   Osmosis 
 Cosmos   Karura   Polkadot 
 Cronos   Kusama   Provenance 
 Crypto.org   Mina   Solana 
 Diem   Moonbeam   Terra 
 Edgeware   Moonriver   Tezos 

More protocols are in development and will be shared upon release. 

Networks have a variety of requirements to launch nodes, which often differ greatly from one another. If you are interested in learning more about how to securely set up all clusters, we currently ask our customers to please fill out our Cloud Interest Form.

Steps before you launch a Participate cluster

Before you can launch a cluster, you will often need to claim and stake your tokens. Each protocol uses a different method for this process, and, if the process is completed improperly, your funds can be put at risk. If you are interested in launching a Participate cluster, please fill out our Cloud Interest Form. If you are an existing customer interested in launching a new Participate cluster, please reach out to your dedicated account manager.

Launch and manage a Participate cluster

You can easily spin up a Participate cluster from Coinbase Cloud.

  1. Select the dropdown menu icon in the top left
  2. Select Participate clusters from the dropdown
  3. Select your desired protocol from the list
  4. Select Create
  5. Name your cluster
  6. Choose a provider and region
  7. Select your desired number of nodes
  8. Select a network
  9. Some protocols will have additional steps before launch, such as setting up a validator fee or adding a withdrawal address. Complete any additional steps. 
  10. Select Save & continue
  11. Review your configuration
  12. Complete required steps for payment and for reading and agreeing to the Terms of Service
  13. Select Launch cluster

Every cluster is designed to run the appropriate node(s) and supporting infrastructure so that you can actively participate in a protocol. If you want to have additional nodes, you need to spin up a new cluster.

It is possible to change the configuration of your Participate cluster after it’s running. Reach out to your dedicated account manager to request changes.

There is no limit to the number of Participate clusters you can run on Coinbase Cloud. As long as you have the minimum stake necessary to run a node on your desired protocol, you can spin up a new cluster. This minimum stake is required in order for your node to be in the active validating set. If you don’t have enough stake to meet the minimum requirements, you can delegate nodes to Coinbase Cloud in order to participate in the protocol and earn rewards until you're ready to run your own Participate cluster.

If you are an existing customer and are ready to launch another cluster, please reach out to your dedicated account manager. Or if you are not yet a customer and are interested in launching a cluster, please fill out our Cloud Interest Form.

 

If you want to attract delegators, there are two key things you must convey to your community:

  1. You are a reliable and trustworthy validator

  2. Your validator fee is in-line with other quality validators on the network

The first one is covered by having Coinbase Cloud manage and monitor your node for you. For the second, your goal is to set a validator fee that will attract delegators and also provides you with your desired percentage return as the node operator.

Each protocol uses different methods for bonding and delegation. If you want to understand how to help people delegate to your cluster, view our Step-by-Step Guide.

The validator fee is the fee charged to delegators to stake to your node cluster. It is calculated as a set percentage of the total rewards earned by delegators. 

On most protocols, node operators can set a validator fee percentage anywhere between 0-100%, depending on their desire to attract delegation. 

In general, if you want delegation, it is recommended to set the validator fee within the range of other nodes on the network. Operators who do not want outside delegation generally set their fee at 100%.

To determine the range of fees other validators charge on a protocol, visit a block explorer for that protocol or ecosystem and look at the top 25 validators. Use those as an indication of what others are charging to help inform your decision.

Node operators have to pay a portion of their rewards earned to Coinbase Cloud in the form of a participatory fee, which is the fee paid to Coinbase Cloud for managing your node cluster infrastructure. A participatory fee is also added to the validator fee charged to delegators who stake to your node cluster.  The validator fee minus the participatory fee equals the node operator fee.

When determining your validator fee for your managed node, it is important to remember that:

  • The validator fee is NOT the fee percentage you receive 

  • Coinbase Cloud takes a small percentage of all the rewards earned by your node, including those from your delegators, as a participatory fee

  • You earn a node operator fee

Your goal is to set a validator fee that will attract delegators but also provides you with your desired percentage return as the node operator.

For example, if you want to earn a minimum of 6% and your participatory fee is 2%, your validator fee will need to be at least 8%. Assuming the median validator fee on the protocol is around 8%, you won’t have a problem attracting delegators. However, if it is significantly lower, you may need to accept a lower node operator fee in order to have a node that's attractive to delegators.

 

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