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Oracle Validator Rewards (OVR)

LORCAs receive Oracle Validator Rewards for the validation of opening and closing payment channels. The compensation model for oracle validators creates permanent incentive circles and accounts for participantsā€™ costs of providing lightning services.

In detail, the reward scheme for oracle validators works as follows:

  • LORCAs benefit from a specific remuneration scheme different than Channel Rewards for regular Lightning Nodes.
  • LORCAs receive OVR for the initial verification of Lightning Nodes according to the OVR transaction calculation.
  • OVRs are distributed automatically on a transaction-basis once the validation is successfully completed. This means OVRs are given by the Treasury HODL as soon as the oracle validator has submitted the data to confirm the consensus on-chain. This event happens within the channel opening or closing validation transaction. Once the consensus is reached and the final state of the channel is confirmed, rewards are distributed.
  • OVR is due as soon as consensus is reached and the final state of the channel is confirmed, ensuring LORCAs are compensated in real-time and not exposed to currency risk.