# Details

**Verifier Nodes**  

* Singularity Finance L2’s verifier nodes enable community members to actively participate in securing the network by validating transaction batches. The initial design will focus on minimising software and hardware requirements, thereby enhancing community participation.
* Setting up a Verifier Node involves a streamlined process that allows users to configure a lightweight node client connecting to the Singularity Finance network. This approach ensures that even non-technical community members can operate nodes effectively. Node operators will receive rewards based on their contributions to the network, measured by uptime and validation accuracy. These rewards will be distributed automatically via smart contracts, ensuring transparency and fairness.

**Fraud Proofs**  

* In late 2025, the SFI L2 will upgrade its nodes to incorporate Fraud Proofs, significantly enhancing network security. Fraud Proofs are a vital component of the Optimistic Rollup architecture, designed to ensure the validity of state transitions through permissionless validation and dispute resolution.
* The Fraud Proof mechanism allows users to submit state proposals, which represent claims about the network's state, such as the inclusion of a transaction batch or a withdrawal request. These proposals will undergo a challenge period during which other participants can dispute them if they believe the proposals are invalid. Disputes will be resolved through a “dispute game,” an iterative process where both parties present evidence to support their claims.
* Proposers will earn rewards for submitting valid state transitions, while challengers will receive compensation for successfully identifying and disputing invalid proposals. This model fosters vigilance and active participation, thereby securing the network and maintaining its integrity.

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**Benefits of running a node:**

* Staking Rewards: Node operators will earn rewards by staking SFI tokens and running the nodes. These rewards will be distributed based on their contribution to the network, such as uptime, number of transactions processed or the number of tokens staked.
* Share of Transaction Fee: As the network matures, the network will see a growth on the number of transactions occurring on the chain. Node operators will also earn part of the transaction fee generated by the network.
* Delegated Staking: Users who cannot run their own nodes will be able to delegate to the available node operators. This allows pooling of resources leading to increase in staking power and greater rewards. A portion of the rewards would be distributed back to the delegators
* Governance Participation: Node operators and delegators will be able participate in governance decisions based on the token staked or contribution to the network, allowing them to influence the future direction of the network.

**Vesting and Unlock**

To discourage short-term speculation and ensure overall network stability, early redemption of staked tokens may incur a penalty on the staked amount. Tokens become fully accessible after the completion of the vesting period, allowing operators to realise the full benefits of their participation.

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