Terms and Conditions

1. Introduction

Decentralized Nodes (the “Program") is an initiative by the Web 3.0 Technologies Foundation (the “Foundation”). The purpose of the Program is to utilise tokens held by the Foundation to nominate a validator operator (the “Validator Operator”) within the community. A Validator Operator shall be understood as an individual or business entity responsible for validating transactions and maintaining the integrity of the network, together with an underlying infrastructure (the “Validator Node”).

The primary objective of the Program is to provide a structured on-ramp for the Validator Operator to join the active set on Kusama and/or Polkadot networks and further decentralising the validator active set. These terms and conditions (the “Agreement”), shall constitute a binding agreement between the Validator Operator and the Foundation in relation to the Program.

2. Eligibility

To be eligible for participation in the Program, the Validator Operator must meet the following criteria:

The Validator Operator must comply with the technical and other requirements and specifications of the Kusama and Polkadot networks at all times, as specified in the Rules and Selection Criteria by the Foundation.
The Validator Operator must adhere to the code of conduct and guidelines set forth by the Foundation.
The Validator Operator must operate with transparency and integrity, providing accurate and up-to-date information about their infrastructure and operations.
The Validator Operator must also meet the KYC/AML requirements of the Foundation. The detailed requirements will be set out in separate instructions provided by a third-party provider selected by the Foundation.

3. Nomination Process

The Validator Operator interested in participating in the Program must submit a completed application form to the Foundation, providing details about their infrastructure, and may be asked to provide additional information regarding their experience and commitment to the goals of the Program.

The Foundation will review applications and select the Validator Operators based on their alignment with the objectives of the Program. Nominations on Polkadot and/or Kusama by the Foundation are made at its sole discretion. This Program creates no obligation legal or otherwise on the Foundation to nominate or continue nominating any user of the Polkadot or Kusama networks. Submitting the information via this form and meeting the outlined requirements does not create any legal right or entitlement to receive nominations from the Foundation either now or in the future.

The selected Validator Operator will be nominated using the tokens held by the Foundation for the sole purpose of joining the active set on the Kusama and/or Polkadot networks.

4. Responsibilities of the Selected Validator Operator

The selected Validator Operator must actively participate in the Kusama and Polkadot Relay Chains, contributing to the security and stability of the networks. The setup for a single Validator Operator should at least be according to the Reference Hardware listed on the Polkadot wiki. For security reasons, multiple validators should not be run on the same hardware.

The Validator Operator must comply with any additional terms and conditions set forth by Kusama and Polkadot networks, as well as with the rules of the Program, as announced in the relevant channels.

5. Funding and Rewards

The Foundation will nominate a Validator Node’s stash account owned by the Validator Operator to support their operations within the Program. The Foundation might earn staking rewards associated with such delegation; and each selected Validator Node will be allowed to keep a portion of staking rewards by setting a commission as specified in the Rules and Selection Criteria by the Foundation. The Foundation will retain all voting rights associated with such delegation and the Validator Operator shall have no control over, and shall not seek to direct, influence or interfere with their voting.

6. Data Protection

The Validator Operator acknowledges and agrees that the Foundation will collect and process personal data submitted in the application form (such as an email address, Matrix handle, X handle, etc.) for the purposes of performing this Agreement and the purposes of the Program. Additionally, the data collected during the KYC process will be processed by Sum and Substance Ltd.

The Foundation will handle personal data in accordance with applicable data protection laws and regulations. The details of how the data will be processed, as well as the respective data subject rights can be found in thisprivacy policy.

Personal data will be used solely for the purpose of evaluating and managing the participation of the Validator Operator in the Program. The Foundation will take appropriate measures to ensure the security and confidentiality of personal data.

7. Compliance with the Applicable Laws and Liability of the Validator Operator

The Validator Operator shall be responsible for ensuring full compliance with all applicable laws, regulations, and legal requirements related to their activities under this Agreement, including those specifically governing staking activities. This includes, but is not limited to, laws and regulations pertaining to blockchain technology, cryptocurrencies, and any other relevant regulations that may apply to the Validator Operator's role in the staking process.

The Validator Operator shall conduct their staking activities in a manner that is consistent with the applicable legal obligations. This responsibility extends to all aspects of their participation in the staking process, including but not limited to validating transactions, securing the network, and any other actions required by this Agreement.

In the event that any changes in the applicable laws, especially those related to staking, occur during the term of this Agreement, the Validator Operator agrees to promptly adjust their staking activities to ensure continued compliance. The Validator Operator further agrees to promptly inform the relevant parties involved in the Agreement of any legal developments that may impact their ability to fulfil their staking obligations.

Further to this, the Validator Operator is required to confirm the following:

That neither the Validator Operator nor any of its underlying beneficial owners or associated persons is listed on any of the following lists (each a “Sanctions List”): the Consolidated United Nations Security Council Sanctions List; the Specially Designated Nationals and Blocked Persons List or the Sectoral Sanctions Identification List maintained by the US Office of Foreign Assets Control (OFAC); the Consolidated List of Persons, Groups and Entities subject to EU Financial Sanctions; the Consolidated List of Financial Sanctions Targets or List of persons subject to restrictive measures in view of Russia's actions destabilising the situation in Ukraine, maintained by the UK Treasury; the Overall List of Sanctioned Individuals, Entities and Foundation maintained by the Swiss State Secretariat for Economic Affairs (SECO); 'Ordinance lists of the Swiss Federal Council'; or any similar list maintained by, or public announcement of sanctions made by, any other Sanctions Authority (as defined below).
The Validator Operator is not owned or controlled by, or acting on behalf of or for the benefit of, any person on a Sanctions List.
The Validator Operator or any of its Validator Nodes are not located in, resident in or incorporated under the laws of (as applicable) Syria, Iran, Cuba, Crimea, Donetsk and Luhansk, North Korea or Russia, or any other country or territory which, becomes the target of such comprehensive, country-wide or territory-wide Sanctions (as defined below) as currently apply to the aforementioned territories; or the target of any sanctions laws, regulations, embargoes or restrictive measures (Sanctions), as amended from time to time, administered, enacted or enforced by: the United Nations, the United States, the European Union or any Member State thereof, the United Kingdom, Switzerland or the respective Governmental Authorities and agencies of any of the foregoing responsible for administering, enacting or enforcing Sanctions, including without limitation, OFAC, the US Department of State, the United Kingdom Treasury or the SECO (Sanctions Authority).
The Validator Operator shall indemnify and hold harmless the Foundation from any third party claims (including reasonable attorney's costs) raised against any of the Organization’s based on an alleged infringement of the above representations and warranties.

Failure to comply with applicable laws may result in the termination of this Agreement, and the Validator Operator may be held liable for any damages or legal consequences arising from non-compliance with staking regulations. Further to this, the Validator Operator is liable for any breaches in relation to this Agreement.

8. Exclusion of Liability

In no event shall the Foundation be liable to the Validator in respect of any losses arising from the participation in the Program, in particular the Foundation is not liable for any loss of profits, loss of revenue, loss of contracts, or for any indirect or consequential loss whether arising in contract, tort (including negligence), misrepresentation (whether statutory or tortious), breach of statutory duty or otherwise. However, to the extent that the Validator suffers a loss as a result of the participation in the Program, the Foundation's individual total liability to you for such losses whether in contract, tort (including negligence), misrepresentation (whether statutory or tortious), breach of statutory duty or otherwise shall be limited to CHF 100.

9. Termination of Participation

The Foundation reserves the right to terminate the participation of any Validator Operator in the Program for any reason without any prior notice, including but not limited if they violate this Agreement, the rules of the Program, code of conduct, or guidelines set forth by the Foundation or the Kusama and Polkadot networks.

10. Amendments to Terms and Conditions

The Foundation reserves the right to amend these terms and conditions, as well as the rules of eligibility, participation, and for receiving nominations at any time through appropriate channels. The Validator Operator’s continued participation in the Program implies acceptance of the revised terms.

11. Governing Law:

This Agreement shall be governed, construed, and enforced in accordance with the laws of Switzerland, without giving effect to its conflict of laws principles. The courts of the Canton of Zug shall have exclusive jurisdiction to settle any disputes arising out of it or in connection with the Program and this Agreement.

By sending the application form for the Program, the Validator Operator agrees to abide by this Agreement.