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Validators
Validators are participants in the network who are responsible for verifying transactions. Once transactions are verified, they are added to the distributed ledger. In proof of work (PoW) systems like Bitcoin, validators, also known as miners, solve complex computational math problems in order to win the right to verify transactions and receive rewards for the “work.” In proof of stake (PoS) systems like LUX, validators are given rewards as long as they stake the network’s token (LUX). This mechanism helps secure the network by imposing the need to lock up value in the network in order to participate. Accredited investors can acquire a Lux Validator NFT to become a stakeholder in this revenue-generating DeFi mechanism and earn passive income.