We’re thrilled to publish our Operator Network Specification. Click here to read it in detail.
For an overview of the Operator Network and use of the protocol’s native token, HLG, keep reading.
TL;DR
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Operators execute destination chain bridge txs so that users don’t have to
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Operators must run the Operator CLI, bond the protocol’s native token, HLG, and execute txs
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For providing this service, operators earn bridge tx fees plus HLG rewards
When a token is bridged from one blockchain to another, it is locked on the origin chain and a new token is minted on the destination chain. This means that a minimum of 4 transactions must be executed, 2 networks must be added to a wallet, and 2 gas tokens must be used to pay fees on both chains. This results in a bridging user experience that is cumbersome, expensive, and time consuming.
To solve this problem, Holograph employs use of operators, which is a network of ecosystem participants who execute bridge transactions for users (aka “jobs”). This reduces user friction when bridging tokens by:
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reducing the number of txs needed to complete the process
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removing the need to switch networks
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removing the need to manage multiple gas tokens
To execute jobs, operators must bond the protocol’s native token, HLG. The probability of getting selected to execute a job is based on the number of tokens bonded - the more tokens bonded, the higher the probability of selection. Operators who successfully execute jobs earn bridge transaction fees plus HLG rewards. Operators who fail to execute jobs will have a percentage of their bonded tokens slashed.
Thanks for reading and make sure to keep in touch!