EtherLite runs on a Proof-of-Stake mechanism which requires ETL to sustain the network. Validator nodes are required to stake a minimum of 100,000 ETL on its own address and in return validators will receive rewards and fees for their service. If the validator does a malicious activity, then their staked ETL is basically confiscated.
The number of EtherLite network participants cannot exceed 50418 maximum Validators.
The network’s operation is divided into staking epochs. A single staking epoch is one week for 3 seconds average block time, though the current average block time can vary (the current avg block time can be checked on https://explorer.etherlite.org/). A new staking epoch begins immediately following the termination of the previous epoch.
At the beginning of each staking epoch, the algorithm selects a random set of validators from the current list of candidates. If there are more than 50418 suitable candidates, the top 50418 candidates plus a random number are chosen. But if there are fewer than 50418 suitable candidates, every candidate becomes a validator.
The validator selection process takes place at the end of an epoch cycle. The time taken for the selection process is 14400 blocks which is approximately 12 hours of 3 seconds block. This time-span could vary if the average block time is different.
During the selection of a new set of validators, the algorithm creates a snapshot of the current state of the validators’ pools.The snapshot is used to calculate the reward amount for validators and delegators when they claim the reward.