> For the complete documentation index, see [llms.txt](https://cvnnt.gitbook.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cvnnt.gitbook.io/documentation/system-architecture/governance/system-nodes/master-node-ranking-system.md).

# Master node ranking system

Covenant system utilizes generally the same policies for the master nodes: both for state validation nodes (validators) and cross-chain connections validation nodes (collators). 

To become a master node and participate in the validation process, a node needs to perform a required initial validation stake $$B\_{init}$$  - an amount of tokens which is subject to slashing for misbehaviour. 

Validation stakes have a maturity period to ensure master node continuous commitment. With performing a validation stake $$B\_{init}$$ a node becomes a master node.

### Master node reliability rate

Each master node has a reliability rate $$R\_v$$, that is built upon:

* Node p2p reputation rate $$T\_v$$ 
* Node performance rate (to ensure high sync ratio and correct current network state)
* Number of validation rounds participation
* Reliability stake $$B\_r$$ - an additional validation stake amount that can balance $$T\_v$$ up to a certain limit. 

Master node has to gain the minimal required $$R\_{init}$$ reliability rate to become a Candidate node thus be able to participate in validation.

The higher $$R\_v$$ the master node gains, the higher probability for it to participate in the consensus round if the number of nominee nodes $$n$$ is greater than the $$n\_c$$ - number of nodes required for the round ($$n > n\_c$$).

$$n\_c = gt$$

where $$g$$ is number of groups and $$t$$ is size of the group

However, with highly reliable ($$R\_v \to max$$) master nodes overall amount growth, to ensure decentralization and to provide newbie Candidate master nodes with a right to show themselves as a validation node, the group formation algorithm includes master nodes with minimal required $$R\_{init}$$ reliability ratings to node groups.

#### Reliability staking

Basically, reliability rate $$R\_v$$ highly depends on reputation rate $$T\_v$$ , thus to achieve $$R\_{init}$$, a node should gain $$T\_v \geq T\_{init}$$, where:

 $$T\_{init} = kT\_{max}$$ , 

where $$T\_{max}$$ is the maximum reputation rate (e.g. $$100$$), $$k$$ is validation eligibility coefficient (e.g. $$0.6$$).

A master node can stake an additional amount $$B\_r$$ (that is subject to slashing along with initial validation stake $$B\_{init}$$ ) to balance their $$T\_v$$ in their $$R\_v$$ up to a certain limit (e.g. up to $$0.25\text{ }T\_{max}$$ ).

The reason for adding $$B\_r$$ is that an additional to $$B\_{init}$$ validation staking $$B\_r$$ is also subject to the same slashing mechanics for misbehaviour as shows node commitment to fair operations as validation staking $$B\_{init}$$  does while reliability staking can be particularly useful for nodes that decide to become master nodes and then gain the required validation reputation amount $$T\_{init}$$. 

### Master node ranking system

Based on its $$R\_v$$ , a master node can be ranked as follows:

* Consensus nodes - currently participate in round $$\sigma$$
* Witness nodes - currently participate in round $$\sigma$$
* Candidate nodes - eligible to participate in round $$\sigma+1$$
* Applicant nodes - need to wait for their validation stake maturity / gain their $$R\_v \geq R\_{init}$$ to become a Candidate.

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