valar_daemon 0.3.1rc4

The Valar Daemon is used to automate Validator Manager tasks on the Valar Peer-to-Peer Staking Platform.

Valar Daemon

Congratulations, you have chosen to offer your node running services on one of the most decentralized staking platforms for Algorand — The Valar Peer-to-Peer Staking Platform. Three steps are required to set up your node for Valar:

1. Run an Algorand participation node - Section 1.
2. Advertise your node on Valar - Section 2.
3. Automate the servicing of users - Section 3.

These steps are described below.

Please refer to the Daemon's repository for the changelog, source code, tests, and a broader description of the Valar Daemon. Additionally, you can find smart contract and user interface (UI) source code in the master repository. Furthermore, you can find answers to FAQ, the Valar platform's terms of usage, and other information at stake.valar.solutions. The Valar Daemon is provided under the GNU Affero General Public License v3.0.

Note that the terms "node runner" and "validator" are used interchangeably.

1. Run an Algorand participation node

Node runner responsibilities

As a node runner you form part of the backbone of the Algorand blockchain.

Your node will be participating in consensus, verifying transaction and proposing blocks. The larger the relative amount of stake that participates in consensus through your node, the more often it will be selected for proposing a block, according to the Algorand Pure Proof of Stake (PPoS) consensus mechanism. This means that any downtime that your node may experience can negatively impact the network, those staking through you, and ultimately any of your earnings.

Run your node responsibly.

Installing and setting up the node

The first step is to set up and run an Algorand participation node. The options for installing and configuring a node include:

• Applications with a graphical user interface (GUI) such as Funk's Ultimate Node Controller (FUNC) or Aust One-Click Node (A1CN).
• The command-line (CLI) one-stop-shop for Algorand node running Nodekit.
• A custom install with more flexibility according to Algorand's developer guide.

It is recommended to enable automatic running of the node on startup since your machine may reboot unexpectedly, e.g., due to interrupted power supply. The configuration of automatic startup varies between systems and installation approaches. Check the specific guide that you followed for more details.

2. Advertise your node on Valar

The next step in offering your node running service to others is to create an advertisement (ad) on the Valar Platform.

Go to stake.valar.solutions, connect your wallet, and choose the option Run a Node. You can then create an ad for your node, where you define the terms of your service.

Defining the terms of the ad includes defining your fees. These consist of a setup fee - a one-time cost for preparing the node for a new user, and an operational fee, which is charged to the user according to their requested duration of staking. You can define the operational fee as a flat fee and/or to be proportional to the user's requested maximum stake because of the potential additional burden on your node due to the higher stake. You also select the currency of the fee payment.

As a responsible node runner, you can define the maximum limits on the ALGO amount that a user can stake on your node. This way you can reject accepting larger stakes than your node can responsibly handle. If a user stakes more than the agreed limit, the service contract can get terminated.

Because users can involuntarily get their stakes increased above the agreed maximum as sending ALGO is permissionless, you can give them a certain number of warnings before terminating the contract due to the breached limits. In case you charge according to the user's requested maximum stake, you can give them a buffer on top of their requested maximum stake so they are less likely to breach the limit.

You also set the time until when the users can stake with you as well as the minimum and maximum duration of staking. Moreover, you define the setup time - the time in which you promise to respond to a user's request to stake via your node by generating and giving them the participation keys; and the confirmation time - the time in which the user should sign the generated keys and confirm the service contract.

You can use the Valar Daemon to automate the servicing of users — handling new user staking requests and managing ongoing collaborations. The ad requires you to enter a manager address, which the Valar Daemon will use when interacting with the platform. It is best to use another account with minimal funding (i.e. hot wallet) for the manager address, since the Valar Daemon needs signing right for this account. As part of the ad management, you must also define how many users you accept on the node at a time.

3. Automate the servicing of users

As a node runner on the Valar Platform, you will be receiving staking requests in the form of new delegator contracts. Each of these requires the generation of participation keys, monitoring to check that the contract's terms are met, and cleanup in case of termination or early ending. The Valar Daemon automates these tasks for you.

Install Python3.12 or grater

Running the Valar Daemon requires Python 3.12 or greater. You can follow a generic guide on how to install Python for your system, e.g., the guide at Real Python covers the major operating systems.

While you can use a global instance of Python, it is recommended to use a virtual environment for easier maintenance.

Install the Valar Daemon

You can install the Valar Daemon as a standalone package, including the required dependencies, using pip install valar_daemon.

More information about the package and previous versions can be found at PyPI.

Configure the Daemon

You need to configure the Valar Daemon before running it. This is done through a configuration file.

Getting the configuration file

It is recommended that you make an additional directory (e.g. mkdir ~/valar_daemon and cd mkdir ~/valar_daemon) and download a template for the configuration.

You can copy the template of the configuration file to the current directory using wget https://raw.githubusercontent.com/ValarStaking/valar/refs/heads/master/projects/valar-daemon/daemon.config.

Alternatively, you can navigate to the provided URL and copy-paste the template to an empty file named daemon.config.

Configuring the Daemon

In the config file, you should update the following parameters in accordance with your setup:

• The ID of your ad validator_ad_id_list = [<validator_ad_id>].
• The mnemonic of your Validator Manager (hot wallet) validator_manager_mnemonic = <validator_manager_mnemonic>.
• The URL and port of Algod running on your node, algod_config_server = <URL:port>. You can find this in your node's files, for example, usually under var/lin/algorand/algo.net for Linux users.
• The admin API token to access Algod on your node, algod_config_token = <token>. You can find this in your node's files, for example, usually under var/lin/algorand/algo.admin.token for Linux users.

The other parameters offer advanced features and you can read up more about these in the daemon's repository.

Starting the Daemon

You can run the Valar Daemon using python -m valar_daemon.run_daemon, which will search for the configuration file daemon.config in the current working directory and create an output log directory valar-daemon-log in the same directory.

Alternatively, you can point the Daemon to a specific config file and log directory using python -m valar_daemon.run_daemon --config_path <config_path> --log_path <log_path>, where the additional parameters are:

• <config_path>: the path to the configuration file daemon.config, including the file's name.
• <log_path>: the path to where the Valar Daemon can make a new directory and populate it with the log (about 1 MB in size), including the log directory's name.

Verifying that the Valar Daemon functions correctly

The Valar Daemon's first task is to switch the corresponding ad's state to READY. You can verify that this step was carried out successfully by checking the state of the ad on stake.valar.solutions/dashboard.

Additionally, you can monitor the Valar Daemon's interaction with smart contracts and the status of miscellaneous tasks using its logs. These are described in more detail in a later section.

Running in the background without interruption

You can run the Daemon in the background and keep it running even after you close the terminal or SSH connection using:

• nohup python -m valar_daemon.run_daemon & for Linux/macOS
• Start-Process python -ArgumentList "-m valar_daemon.run_daemon" -WindowStyle Hidden for Windows (using Windows PowerShell)

To verify that the Daemon is running successfully, you can:

• Check the logs in valar-daemon-log.
• Search the running processes on your system for valar_daemon.run_daemon (Linux/macOS) or Python (Windows).

For example, on Linux you can search for the Valar Daemon process using ps aux | grep "valar_daemon.run_daemon" and gracefully terminate it with kill <PID>. On Windows, you can find the process in cmd with wmic process where "name='python.exe'" get Commandline, ProcessId.

One of the alternatives is to deploy a screen (screen), launch the Daemon inside the screen (python -m valar_daemon.run_daemon), and detach from the screen (ctrl+a+d) before closing the terminal or SSH connection. You can later get the screen's ID (screen -ls) and re-attach to it (screen -x <screen_ID>).

Additionally, you can follow the below guide on setting up a cron job, which will periodically check that the Daemon is running and run it if it isn't.

Additional considerations

Monitoring the Valar Daemon

You can monitor the operation of the Valar Daemon through the logs that reside at the chosen path <log_path>. Logging is structured in five levels, whose combined size is limited to approximately 1 MB by default. Old entries will be overwritten once this size is reached and only the latest log information is kept. The five logging levels, organized according to (according to Python.logging), are described below.

Level	Description	Subdirectory
Critical	The most critical errors, such as an unreachable network, preventing the Valar Daemon from interacting with the blockchain.	50-critical
Error	Errors which impact a specific part of the Valar Daemon, such as the fetching of information for one smart contract.	40-error
Warning	Indicators of potential concern, such as having zero ads associated with the Valar Daemon.	30-warning
Info	Informative messages of general nature, such as information about the ending of a Delegator Contract.	20-info
Debug	Detailed messages about separate components of the Valar Daemon.	10-debug

Each logging level includes it's own messages and those of higher priority. For example, the log 50-critical/critical.log includes only critical error messages, while 10-debug/debug.log includes all logged events. It is recommended that you regularly check in on the error messages with warning priority or higher in order to detect any malfunctions. Note that logs get eventually overwritten due to their size limit, thus is recommended that you duplicate the log file if it seems to include potentially relevant information.

Please refer to the log message README for a list of expected log messages.

Automatically starting the Valar Daemon

Your node may suffer from power, connectivity, or other issues. While the Valar Damon has several built-in mechanisms to provide resilience in such circumstances, it does not automatically start up after it has been terminated. To achieve this, you can employ a job scheduler on your system.

The procedure for setting up cron on Linux systems is described below. Please first verify that the Valar Daemon runs on you machine using the preceding steps and terminate any running instances before continuing.

Obtaining and configuring the script for checking the status of the Valar Daemon

You can download from repository a bash script that checks whether the Valar Daemon is running and, if it is not running, starts it. Navigate to a directory where you want to keep the script and download the provided bash script using

wget https://raw.githubusercontent.com/ValarStaking/valar/refs/heads/master/projects/valar-daemon/check_script.sh

Next, open the script and point it to the necessary locations on your system. You can configure the script using an editor of your liking, for example, by using nano check_script.sh or vim check_script.sh. There you can adjust the following parameters:

• INTERPRETER_PATH: Path to the Python interpreter that you have set up or the corresponding alias.
• SCRIPT_PATH: Path to the run_daemon.py script path.
• LOG_PATH: Path to the directory where the Valar Daemon will place its log.
• CONFIG_PATH: Path to the daemon.config file. Note that all paths should preferably be absolute, i.e. starting with /.

You can run the Valar Daemon using the script by issuing the command /bin/bash <path>/check_script.sh. You can verify that the Valar Daemon is working by checking that the debug log at LOG_PATH that you just configured is being written to. You can use tail -10 <path>/10-debug/debug.log to confirm that the timestamps of the logged messages are recent (several seconds, depending on the Daemon's configuration). Alternatively, you can observe the log in real-time using watch -n 1 "tail -n 10 <path>/10-debug/debug.log.

Setting up cron

Cron is a job scheduler, which you can configure to periodically run check_script.sh. Hence, cron will monitor the Valar Daemon's status and start the Daemon if needed. Start by issuing the command crontab -e to open cron's configuration. There, navigate to the bottom and add the following line

* * * * * /bin/bash <path>/check_script.sh >> <path>/cron.log 2>&1,

where <path> is the path to where you placed check_script.sh. Save and exit the editor to have cron run check_script.sh with a one-minute period and log output to cron.log. While the Valar Daemon is configured to use its own log directory, cron's log will enable you to see if there are any overarching system issues.

Check that cron is running using systemctl status cron and start it if needed with systemctl start cron (you may need admin privileges). You can again verify that the Valar Daemon is running by checking the file <path>/10-debug/debug.log.

Once you have set up cron, you can reduce the period at which the Valar Daemon is monitored to save resources. For example, you can run the job at the beginning of every full hour by setting the initial parameters to 0 * * * * (run each hour on the zeroth minute).

It is recommended to monitor the status of your ads and your node in general, regardless of cron.

Additional troubleshooting

There are three basic steps for debugging possible issues with the bash script or cron:

• Try to execute the check_script.sh manually, without cron.
• Check the Valar Daemon's debug log <path>/10-debug/debug.log.
• Check the log of the job scheduled by cron cron.log.

In addition, you can check:

• That you successfully updated cron's configuration with crontab -l.
• If cron is running using systemctl status cron.
• Cron's log with grep CRON /var/log/syslog.