MATRIX AI Network-Miner & Validator Migration Guide
1 August 2026
As part of the MATRIX AI Network mainnet upgrade, the network architecture will transition from a traditional Proof-of-Work (PoW) blockchain to a next-generation Layer 2 (L2) infrastructure.
This guide explains how the upgrade affects existing Miners, Validators and Stakers, how current staking positions will be migrated, and the opportunities available in the new ecosystem.
Q1: How will mining change after the mainnet upgrade?
A:
Following the upgrade, the traditional Proof-of-Work (PoW) mining mechanism will be gradually phased out.
This means:
Miners will no longer produce blocks through computational mining.
The network will no longer rely on hash power competition for consensus.
Instead, the upgraded network will operate through:
Validators
Sequencers
Stakers
Data Availability (DA) Nodes
However, the existing mining community remains an important part of the MATRIX ecosystem.
To recognize and protect long-term contributors, the Foundation will introduce:
Historical snapshots
Loyalty airdrops
Long-term reward programs
Automatic staking migration
Q2: How does the new L2 network operate?
A:
The upgraded MATRIX AI Network adopts a modern Layer 2 architecture based on:
L2 + Sequencers + Validators + Staking
Unlike a traditional PoW blockchain, network operations are no longer driven by mining competition.
Instead, three core participants work together to maintain the network:
Sequencers — Process and order transactions.
Validators — Verify network state and maintain security.
Stakers — Secure the network by staking MAN and delegating to Validators.
Q3: What is a Sequencer?
A:
A Sequencer is one of the core components of the Layer 2 network.
Its responsibilities include:
Receiving user transactions
Ordering transactions
Producing blocks quickly
Submitting state updates
Increasing network throughput (TPS)
A Sequencer can be thought of as the high-speed transaction processing layer of the network.
Q4: Why is the Sequencer important?
A:
Traditional blockchains require validators or miners to compete to produce each block.
In an L2 architecture, the Sequencer can process transactions immediately before final validation, enabling:
Lower latency
Higher throughput
Lower gas costs
This architecture is a key reason why Layer 2 networks are significantly faster than traditional Layer 1 blockchains.
Q5: Why will the Foundation operate the Sequencer initially?
A:
During the initial launch phase, the MATRIX Foundation will operate the core Sequencer.
This approach helps:
Ensure network stability
Prevent chain forks during migration
Support a smooth ecosystem transition
Increase transaction throughput
Reduce confirmation times
Simplify network coordination during launch
It also allows exchanges, wallets, bridges and DApps sufficient time to complete their integrations with the new network.
Q6: Will the Sequencer become decentralized?
A:
Yes.
As the ecosystem matures, MATRIX AI Network will progressively introduce:
Multiple Sequencers
Community-operated Sequencers
Independent third-party Sequencers
A decentralized transaction ordering network
The long-term objective is a fully decentralized Layer 2 infrastructure.
Q7: What are the responsibilities of Sequencers and Validators?
Role
Primary Responsibility
Sequencer
Process, order and package transactions efficiently
Validator
Verify transactions, validate network state and maintain security
Q8: What does a Validator do?
A:
Validators are responsible for maintaining the security and integrity of the network.
Their responsibilities include:
Verifying block state
Validating data submitted by Sequencers
Participating in network consensus
Detecting abnormal behaviour
Protecting overall network security
In simple terms:
Sequencers optimize speed.
Validators ensure security.
Q9: How will existing Validators migrate?
A:
Existing Validators will be eligible for:
Early Validator Migration Qualification
Selection for the initial Validator set will be based on factors such as:
Historical uptime
Node stability
Long-term contribution
Staking amount
These criteria help ensure the new network launches with experienced and reliable operators.
Q10: How do Validators earn rewards?
A:
Validator rewards may include:
Network rewards
Staking commission
A share of network transaction fees
Future Sequencer revenue sharing
Q11: What is a Staker?
A:
A Staker is any user who contributes to network security by staking MAN.
Unlike Validators, Stakers do not need to operate servers or maintain infrastructure.
Users simply:
Hold MAN
Stake their tokens
Delegate to a Validator
to earn staking rewards.
Q12: Where do Staking rewards come from?
A:
Potential reward sources include:
Network staking rewards
Validator revenue sharing
Transaction fee distribution
DAO incentive programs
Future reward sources may also include:
AI Compute revenue
BioData Network revenue
Q13: How will existing Miner and Validator staking positions be migrated?
A:
This is one of the most important changes introduced by the upgrade.
Existing staked MAN held by Miners and Validators will be migrated automatically.
Users do not need to:
Unstake their MAN
Transfer assets
Use a bridge
Restake manually
Q14: How will the migration process work?
A:
The official migration system will automatically transfer:
Existing staked MAN
Validator staking rights
Delegation relationships
into the corresponding staking contracts on the new MATRIX mainnet.
Users will automatically retain:
Their staking balance
Validator rights
Delegation status
Certain historical contribution weighting
Q15: Why is staking migrated automatically?
A:
Automatic migration provides several important benefits.
1. Preventing Large-Scale Unstaking
Requiring every Validator to unstake simultaneously could create:
Network instability
Liquidity risks
Validator disruption
Automatic migration enables a smoother network transition.
2. Reducing Operational Risk
Many node operators manage:
Large staking balances
Multiple wallet addresses
Long-running infrastructure
Automatic migration minimizes the risk of:
Transfer errors
Missed migration steps
Loss of validator rights
3. Maintaining Network Security
Automatic migration allows the new network to inherit:
Validator reputation
Historical contribution
Existing validation structure
This enables the new mainnet to launch with an established security foundation.
4. Protecting Long-Term Locked Staking
Some Miners and Validators participate in:
Fixed-term staking
Long-term staking programs
Locked validator deposits
Manual migration could prevent these users from participating before their lock-up periods expire.
Automatic migration ensures these users are included without interrupting their staking commitments.
Q16: How can existing Miners participate in the new network?
A:
MATRIX AI Network provides three migration paths.
Option 1 — Become a Staker (Recommended)
Existing Miners can convert:
Existing MAN holdings
Mining rewards
Node-related staking rights
into staking positions on the new mainnet.
Without operating mining hardware, users can continue earning:
Network rewards
Transaction fee sharing
Ecosystem incentives
DAO governance participation
This is the recommended migration path for most Miners.
Option 2 — Upgrade to a Validator
Eligible Miners may apply to become:
Validators
Sequencers (when available)
Data Availability (DA) Nodes
AI/BioData Service Nodes
Applicants will be required to satisfy criteria such as:
Minimum staking requirements
Stable uptime
Server specifications
Community reputation
Successful applicants will continue participating in:
Network consensus
Block validation
Data verification
On-chain governance
Option 3 — Become an AI Infrastructure Provider
Existing GPU and server resources may eventually participate in:
AI inference networks
AI Agent networks
BioData computing
Distributed AI training
DePIN infrastructure
This enables former Miners to evolve from traditional blockchain mining into providers of AI and decentralized infrastructure services.
Q17: How are Early Validator Migration Qualifications determined?
A:
Early Validator Migration Qualification will prioritize operators with strong historical performance.
Evaluation factors may include:
Criteria
Weight
Historical uptime
High
Node stability
High
Operating history
High
Historical staking amount
Medium
Community contribution
Medium
Governance participation
Medium
Qualified Validators may receive priority access to:
The initial Validator set
Testnet participation
Early mainnet deployment
Higher initial network weighting
Q18: What are the responsibilities of Validators on the new network?
A:
Validators will primarily perform:
State validation
Data verification
Consensus participation
Data Availability (DA) validation
Security auditing
Unlike the previous network, Validators no longer perform Proof-of-Work mining.
Validators are expected to:
Stake MAN
Operate validator infrastructure
Maintain high availability
Meet network performance requirements
Q19: Can existing Miners still earn rewards?
A:
Yes.
Reward sources will shift from traditional mining rewards to participation in the new ecosystem.
Potential rewards include:
Staking Rewards
Users may earn rewards through:
Direct staking
Delegated staking
Validator Revenue Sharing
Users who delegate to Validators may receive a share of:
Block rewards
Future Sequencer revenue
Network transaction fees
Q20: Will existing Miners and Validators receive additional migration incentives?
A:
Yes.
To recognize the long-term contributions of existing Miners and Validators, the Foundation plans to introduce a dedicated migration incentive program.
Reward Release Schedule
Year
Distribution
Year 1
40%
Year 2
35%
Year 3
25%
The migration incentive will include an additional allocation equivalent to 10% of rewards, specifically reserved as a migration bonus for eligible PoW Miners and Validators.
Rewards will be distributed using a three-year linear vesting schedule combined with a dynamic weighted reward mechanism.
Rather than rewarding short-term participation alone, the program emphasizes:
Long-term staking
Stable node operation
Continuous participation
Sustainable network security
Frequent exits and short-term speculation will receive lower weighting.
The final reward calculation will incorporate multiple parameters, including:
Parameter
Description
S
Staking amount
L
Lock-up period weighting
U
Validator uptime
C
Historical contribution factor
P
Penalty factor
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