Native Token Staking Blockchain
Precompile contracts necessary for a Permissionless L1 implementation
From Proof of Authority to Proof of Stake
Now that we've covered how Proof of Stake serves as a Sybil protection mechanism that enables permissionless participation in an L1, the next question is: How do we actually transform an existing permissioned L1 using Proof of Authority into a permissionless L1 with Proof of Stake?
In the previous section on staking token selection, we learned that the staking token can either be the native token or a separate ERC20 token. For this course, we will focus on building a permissionless L1 where the native token is also the staking token—the most common and straightforward implementation that creates unified token economics.
1. Opening Validator Management (From Permissioned L1s)
In the Permissioned L1s course, we learned about the Validator Manager Contract—specifically how PoA restricts validator control to a single owner address. The contract hierarchy showed us:
- PoA Model: Only the owner can call
initiateValidatorRegistration(),initiateValidatorRemoval(), andinitiateValidatorWeightUpdate() - Centralized Control: One account (EOA or multi-sig) acts as the gatekeeper
To enable PoS, we need to open these functions to the public—but with economic requirements instead of permission requirements.
2. Adding Token Economics (From L1 Native Tokenomics)
In the L1 Native Tokenomics course, we learned about custom native tokens and that native tokens and staking tokens can be different. We also explored the Native Minter Precompile for managing token supply.
Now we need to integrate these token economics with validator management to create the economic security model that defines PoS.
The Transformation Requirements
To enable native token staking on our L1, we'll need to configure specific precompiles:
Required: Native Minter Precompile
When using the native token for staking, the Native Minter Precompile is mandatory. It enables the minting of staking rewards for validators.
If we're using an ERC20 token for staking instead, we don't need the Native Minter—the ERC20 token just needs to be mintable.
Recommended: Reward Manager Precompile
The Reward Manager Precompile is optional but highly recommended. It automates reward distribution based on validator performance and participation.
If we choose not to enable the Reward Manager, transaction fees will simply be burned rather than distributed as rewards.
Next Steps
In the following sections, we'll explore why these precompiles are necessary and how to configure them for our permissionless L1.
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