# Validator

Orchai Liquid Staking applies an artificial intelligence model to choose the best validators from the Oraichain ecosystem. This method utilizes a validator scoring algorithm to maximize user returns while maintaining that funds are delegated equally throughout the network validators. While selecting top network validators, the program focuses three important factors:

### APR

The APR earned by delegating to validators on Oraichain depends on **Commission Rate.** We prioritize validators who charge a low commission, ensuring that a larger portion of staking rewards goes to users.

### Security

When staking to validators on Oraichain, users run the risk of being slashed but if a validator they’re staking to is slashed or jailed. With this in mind, Orchai Liquid Staking considers the following metrics while selecting our validator set:

#### **Historical Slashing Instances**

Slashing results in the jailing of a validator, meaning the user needs to proactively unstake and restake to another validator. In this case alone, the user would lose a minimum of a week’s worth of rewards. This is why we select validators with the minimum number of slashing instances over the past year.

#### **Uptime** 

This is a key metric to ensure that the validator doesn’t miss block production (also rewards). We use validator uptime figures from the past 6 months to determine the most consistent network validators.

#### **Network Decentralization** 

Oraichain's network relies on decentralization for Proof Of Stake to work. The way Oraichain processes and approves transactions relies on stakes being spread across a wide range of validators. The more diverse and decentralized stakes are, the better for the health of the network overall. There is a risk inherent in everyone choosing the most popular validator to stake their coins with: if the majority of coins end up staked with a small number of validators it can lead to a network halt, where inbuilt protections on the integrity of transactions stop working. Instead, for the sake of the network, it makes sense to spread stakes out across a far greater number of validators to prevent the likelihood of a halt or intentional attack.

To enhance the chain's decentralization, Orchai Liquid Staking will distribute stakes to small validators. However, top-ranked validators will not be excluded. This is because some top-ranked validators do a lot for the ecosystem, and deserve delegations.  

ORAI tokens are assigned to validators depending on their composite score. In the early stages, this score is calculated and predicted by a machine-learning model off-chain. In future versions, we’ll automate this validator this process by taking the scoring mechanism on-chain by using [Orai AI Oracle](https://docs.orai.io/readme/system-overview/decentralized-data-and-ai-platform).

Because of Oraichain interim delegations, Orchai will score validator based on their self-bonded, top [8 validator](https://docs.google.com/spreadsheets/u/3/d/1erAf6D2wigtt4O3_XsEERewFJTGbtBHkegOPWUluLew/edit#gid=0) with highest score will be delegated.