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⚙️How Pi Pool Works

Dive into the mechanics of Pi Pools and understand their operational flow.

Pi Pools reduce financial barriers and streamline the process of becoming a validator on PulseChain, enabling users to participate in network consensus efficiently.

Pi Pool Operation Workflow

  1. Operator Registration: Pi Pool operators can manually register their Node ID and set up their validator using their own hardware. A $5 fee is charged for Node ID generation.

  2. Funding and Collateral: Operators contribute 16M PLS, matched with 16M PLS from Project Pi's liquid staking pool. Operators must also stake at least 25% of their contributed PLS value in PPY as collateral, earning additional PPY rewards.

  3. Activation of Pi Pool: Once setup is complete, the combined PLS is transferred via multisig, and the Pi Pool is registered as a validator on PulseChain.

  4. Validation and Validating Reward's Distribution: Pi Pools validate the network in 15-day cycles, earning rewards based on uptime.

  5. Reward Compounding: At the end of each cycle, rewards are reinvested to compound returns. Operators can withdraw funds and rewards once the Pi Pool concludes.

PPY Rewards Eligibility and Distribution

Pi Pool operators earn PPY rewards by meeting eligibility criteria during reward cycles. Rewards are proportional to the PPY staked as collateral, up to 150% of the staked PLS value. 85% of monthly inflation is allocated to operators, boosting their earnings as an incentive.

Key Dates and Cycles

  • Reward Cycle: A reward cycle within Project Pi lasts for 28 days.

  • Eligibility Date: To qualify for rewards in a specific cycle, your Pi Pool must be created at least 15 days before the cycle ends.

  • Reward Distribution Date: Rewards are distributed on the last day of each cycle, provided your Pi Pool was launched before the end of the cycle.

🌐 Check our Analytics page for the current eligibility date and reward distribution date.

Eligibility Requirements

  • Validation Timing: Pi Pools must be created at least 15 days before the reward cycle ends. Validation must start before rewards are distributed, even if the pool is queued at the eligibility date.

  • PPY Collateral: At least 25% of the staked PLS value must be staked in PPY at the reward distribution time, even if the Pi Pool ends earlier.

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