Blockchain & Cryptocurrency Glossary

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Nominator

1 min read
Pronunciation
[nom-uh-nay-tur]
Analogy
A nominator is like an investor who backs a fund manager: they put capital behind validators they trust and earn a portion of the validator’s rewards.
Definition
In nominated Proof-of-Stake systems, a participant who backs one or more validators by staking tokens on their behalf, sharing in rewards and risks.
Key Points Intro
Nominators contribute to security through:
Key Points

Validator selection: Choose validators to back with stake.

Shared rewards: Earn proportional returns from chosen validators.

Risk exposure: Subject to slashing if backed validators misbehave.

Decentralization: Distributes stake across multiple operators.

Example
On Polkadot, nominators stake DOT and nominate up to 16 validators; they receive a share of the validator’s commission-adjusted rewards each era.
Technical Deep Dive
Nominators lock tokens in staking contracts, specifying validator preferences. At era end, the protocol computes validator election via Phragmén’s method. Rewards and penalties are distributed to nominators in proportion to their stake and validator performance.
Security Warning
Poor validator choices can lead to slashing losses; diversify nominations to mitigate risk.
Caveat
Locked nominator funds cannot be withdrawn until the unbonding period elapses, limiting liquidity.
Related Terms
Delegator
Validator
Staking
Slashing

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