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.

If you need more help, explore our other articles or reach out to our support team via chat or email [email protected]. All examples provided are for demonstration purposes only.

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