# Staking Miner

caution

The staking-miner code is experimental and it is still in the development phase. Use is at your own discretion, as there is a risk of losing some funds.

At the end of each era on Polkadot and Kusama, using NPoS, a new set of validators must be elected based on the nominator preferences. This is a computationally intensive process, hence the usage of the term "mining" for computing the solution. The validators use off-chain workers to compute the result and submit a transaction to propose the set of winners. This can also be delegated to stand-alone programs, whose task is to mine the optimal solution. Staking miners compete with each other to produce election solutions which consist of a validator set, stake distribution across that set, and a score indicating how optimal the solution is. Staking miners run any given staking algorithms (as of now, sequential Phragmén or PhragMMS, subject to change if improved algorithms are introduced) to produce results, which are then sent as a transaction to the relay chain via a normal signed extrinsic. The transaction requires a bond and a transaction fee. The best solution is rewarded, which the least covers the transaction fee, and the bond is returned to the account. The bond and the fee are lost if the solution is invalid.

Staking miner uses a pallet called pallet_election_provider_multi_phase and can only produce solutions during the SignedPhase of the pallet's life cycle. Once the SignedPhase is over and the UnsignedPhase starts, only the off-chain workers can provide election results.

Running the staking miner requires passing the seed of a funded account in order to pay the fees for the transactions that will be sent. The same account's balance is used to reserve deposits as well. The best solution in each round is rewarded. All correct solutions will get their deposit back and the ones that submit invalid solutions will lose their deposit.

## NPoS election optimization​

A basic election solution is a simple distribution of stake across validators, but this can be optimized for better distribution equaling a higher security score. The staking miner does not act as a validator and focuses solely on the election result and optimization of the solution. It connects to a specified chain and keeps listening to new signed phase of the election pallet in order to submit solutions to the NPoS election. When the correct time comes, it computes its solution and submits it to the chain. The default miner algorithm is sequential Phragmén with a configurable number of balancing iterations that improve the score.

## Signed Phase of the election pallet​

The election provider pallet pallet_election_provider_multi_phase is divided into two phases, signed and unsigned. At the end of the pallet's timeline, the function elect() is called.

                                                                   elect()                +   <--T::SignedPhase-->  +  <--T::UnsignedPhase-->   +  +-------------------------------------------------------------------+   Phase::Off   +       Phase::Signed     +      Phase::Unsigned      +

Solutions provided by the staking miner can only be submitted during the signed phase. Solutions are submitted and queued on the chain as a RawSolution. Once submitted, a solution cannot be retracted by the originating account.

RawSolution struct definition:

pub struct RawSolution<S> {    pub solution: S, // The solution itself    pub score: ElectionScore, // The claimed score of the solution.    pub round: u32, // The round at which this solution should be submitted.}

A maximum of pallet::Config::MaxSignedSubmissions will be stored on-chain and they will be sorted based on score. Higher the score the more optimal the election solution is. On both Polkadot and Kusama the 'MaxSignedSubmissions' is set to submissions. This variable can be modified if needed through governance.

Upon arrival of a new solution:

1. If the queue is not full, it is stored in the appropriate sorted index.
2. If the queue is full but the submitted solution is better than one of the queued ones, the worse solution is discarded, the deposit of the outgoing solution is returned, and the new solution is stored in the correct index.
3. If the queue is full and the solution is not an improvement compared to any of the queued ones, it is instantly rejected and no deposit is reserved.

Upon the end of the SignedPhase, no more solutions can be submitted and the solutions in the queue will be checked using Pallet::feasibility_check which ensures the score is indeed correct, and marks them as valid or invalid. By checking each solution in the queue, the queue will be reorganized by score. The highest valid score will be rewarded. Invalid solutions with higher score than the winning solution will be slashed. The rest of the solutions will be discarded and their deposit will be returned. Once the staking miner with a winning solution is ready to be rewarded the runtime will automatically execute finalize_signed_phase_accept_solution which reward account associated with the winning solution.

Queue+-------------------------------+|Solution(score=20, valid=false)| +-->  Slashed+-------------------------------+|Solution(score=15, valid=true )| +-->  Rewarded, Saved+-------------------------------+|Solution(score=10, valid=true )| +-->  Discarded+-------------------------------+|Solution(score=05, valid=false)| +-->  Discarded+-------------------------------+|             None              |+-------------------------------+

## Deposit and reward mechanics​

The staking miners are required to pay a deposit to post their solutions. Deposit amount is the sum of SignedDepositBase +SignedDepositByte + SignedDepositWeight. All good solutions are subject to receiving a SignedRewardBase.

### Deposit​

Current deposit(SignedDepositBase) is which is a fixed amount.

Current deposit per byte(SignedDepositByte) is and the total is variable depending on the size of the solution data. For example, a solution weighing 200KB would yield 200 x 0.0000097656 = 0.00195312 DOT.

And the weight deposit(SignedDepositWeight) is currently set to 0 and has no effect.

### Reward​

Current reward(SignedRewardBase) is which is a fixed amount.

## Further Resources​

If you want to run a staking miner on your validator, refer to the repository provided in the resources section below.