> For the complete documentation index, see [llms.txt](https://docs.matrix.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.matrix.io/mainnet-upgrade-2026/matrix-mainnet-upgrade/matrix-ai-network-miner-and-validator-migration-guide.md).

# MATRIX AI Network-Miner & Validator Migration Guide

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                 |