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Nominators Meaning

Nominators are participants in a Nominated Proof of Stake (NPoS) consensus mechanism, most notably used by the Polkadot network. In this system, token holders don't just "Stake" passively; they actively "Nominate" specific validators they trust to secure the network.

By backing a validator with their tokens, Nominators earn a share of the staking rewards. However, this comes with risk.

If the chosen validator behaves maliciously (e.g., goes offline or tries to double-sign blocks), the validator gets "Slashed" (fined), and the Nominators who backed them also lose a portion of their tokens. This system is designed to force token holders to do their due diligence.

It crowdsources the security vetting process. Instead of just picking the validator with the highest yield, Nominators are incentivized to pick reliable, honest operators, thereby increasing the overall security and stability of the blockchain.

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