BandChain is fully decentralized and tamper-proof, thanks to Tendermint BFT consensus algorithm. With our fast-growing community of validators, BandChain’s oracle operation will continue to be more secured and decentralized.
In order for anyone to become a BandChain node operator, they need to stake BAND tokens as a guarantee that their node will continue to perform as expected. Any BAND token holder can delegate to validators they trust to perform their jobs in return for a share of query fees and block rewards.
For every data request to BandChain, which requires BAND tokens in the form of transaction fees, validators and their delegators earn a fee for fulfilling oracle requests and producing blocks. This ensures that all stakeholders on the oracle network including data requestors (protocols, developers), validators and BAND token holders are economically aligned. The more usage on BandChain, the more protocol fees are accrued to validators and token holders creating a positive feedback loop enhancing security and demand for BAND.