L1 Creation

Where Should You Deploy Your Validator Manager Contract?

This page will help you choose where to deploy your Validator Manager contract: on your own L1 or on the Avalanche C-Chain.

TL;DR:

  • Deploy on your L1 if you want direct, self-contained control over your validator set using Proof of Authority (PoA) and do not plan to move to Proof of Stake (PoS).
  • Deploy on C-Chain if you intend to make your network permissionless with PoS, or want the flexibility to upgrade to PoS in the future.

Overview

With the E-Upgrade (Avalanche9000), validator set management is handled by smart contracts known as Validator Manager contracts. These contracts allow you to define:

  • How validators are selected
  • How rewards are distributed
  • Staking requirements
  • Other aspects of validator management

Types of Validator Manager Contracts

AvaCloud offers ready-to-use Validator Manager contracts for:

  • Proof of Authority (PoA)
  • Proof of Stake (PoS) using ERC20 tokens
  • Proof of Stake (PoS) using native tokens

When you create an L1 with AvaCloud, it starts with a PoA validator manager, where an owner address can add or remove validators. You can upgrade to a PoS validator manager later if your needs change.

The E-Upgrade enables you to deploy the Validator Manager contract either on your L1 or on the C-Chain. Note: while you can upgrade the contract logic, you cannot move its location after deployment.

Validator Set UI

Comparing Deployment Locations

Deploying on Your L1

Pros:

  • Validator management is fully contained within your L1
  • No dependency on C-Chain for validator operations
  • Isolated from C-Chain outages or issues
  • No AVAX required for validator management actions

Cons:

  • Validator management is only available when your L1 is running
  • May not be suitable if you plan to add third-party validators or migrate to PoS

Deploying on C-Chain

Pros:

  • Easier if your staking token is on C-Chain
  • Provides a failsafe: you can manage validators even if your L1 is down
  • Better suited for permissionless, PoS-based networks

Cons:

  • Relies on C-Chain uptime and availability
  • Requires AVAX to perform validator management actions
  • Setup can be more complex

Advanced Scenarios

It is possible to deploy multiple Validator Manager contracts on a single L1, allowing centralized management of several L1s. This is not currently a standard feature in AvaCloud, but reach out to us if you require this functionality.

For any additional questions, please view our other knowledge base articles or contact a support team member via the chat button. Examples are for illustrative purposes only.

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