7. Consensus & Validator Design

7.1 CometBFT (Tendermint) Consensus

Nonterritorial uses CometBFT, the production-ready implementation of Tendermint consensus:

Properties

  • Instant Finality: Transactions are final once included in a block (no confirmations needed)

  • Byzantine Fault Tolerance: Tolerates up to 1/3 malicious validators

  • Deterministic: Same inputs always produce same outputs across validators

Parameters

Parameter
Value
Rationale

Block Time

5s

Balance between throughput and global latency

Max Validators

100

Sufficient decentralization

Min Stake

10,000 UNT

Meaningful commitment

Unbonding

21 days

Security against long-range attacks

7.2 Validator Requirements

Nonterritorial validators are not generic infrastructure providers but mission-aligned participants:

Technical Requirements

  • 99.9% uptime commitment

  • Secure key management (HSM recommended)

  • Geographic distribution (no more than 20% in single jurisdiction)

  • Minimum hardware: 4 CPU, 16GB RAM, 500GB SSD, 100Mbps

Mission Alignment Requirements

  • Demonstrated interest in cultural infrastructure

  • Agreement to governance participation

  • Commitment to long-term operation (minimum 2-year)

  • No conflict of interest with speculative art markets

Validator Categories

Category
Target #
Examples

Cultural Institutions

20

Museums, foundations, universities

Technology Partners

20

Web3 infrastructure companies

Geographic Representatives

30

Regional cultural advocates

Artist Collectives

15

Artist-run organizations

Individual Stakeholders

15

Major contributors

7.3 Slashing Conditions

Violation
Penalty
Rationale

Double Signing

5% stake

Critical security violation

Downtime (>24h)

0.01% stake

Operational reliability

Governance Absence

Warning

Participation expected

Mission Violation

Removal

Community decision

7.4 Validator Economics

Validators earn through:

  • Block Rewards: Portion of operations fund (30% of licenses)

  • Transaction Fees: Small fees for non-license transactions

  • Governance Participation: Reputation and network influence

Expected annual return: 8-15% of staked amount (variable with network activity).

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