ssvlabs · RaekwonIII · Jan 13, 2026 · Jan 12, 2026 · Jan 12, 2026 · Jan 13, 2026
@@ -13,12 +13,35 @@ The Beacon Chain is a brand-new, proof-of-stake blockchain that stores and manag
 
 ### Cluster
 
-The group (usually 4, in compliance with [the fault tolerance rule is accepted](../../../stakers/validators/validator-onboarding)) of non-trusting operators that manage a set (one, or multiple) validator(s). Each operator in the cluster holds a share of the complete validator key, for more information, see [Shamir Secret Sharing](glossary.md#shamir-secret-sharing).&#x20;
+The group (usually 4, in compliance with [the fault tolerance rule is accepted](../../../stakers/validators/validator-onboarding)) of non-trusting operators that manage a set (one, or multiple) validator(s). Each operator in the cluster holds a share of the complete validator key, for more information, see [Shamir Secret Sharing](glossary.md#shamir-secret-sharing).
+
+Clusters pay fees in ETH, which is the standard payment method. Older clusters may still pay fees in SSV tokens, but can migrate to ETH-based payments via `migrateClusterToETH()`.
 
 ### Consensus Client
 
 Formerly known as an Eth2 client. Runs the Ethereum PoS (Proof-of-Stake) consensus layer, aka the Beacon Chain, checking the validity of transactions and new blocks. Examples of consensus clients include Prysm, Teku, Lighthouse, Nimbus, and Lodestar.
 
+### Cooldown Period
+
+The mandatory 7-day waiting period between initiating SSV token unstaking and being able to withdraw your staked SSV. During this cooldown:
+- Rewards stop accruing immediately
+- Oracle voting weight remains active
+- The process cannot be cancelled
+- Unclaimed rewards can still be claimed
+
+The cooldown exists to maintain oracle voting stability and prepare for future governance mechanisms.
+
+### cSSV (Compound SSV)
+
+A non-rebasing ERC-20 token received when you stake SSV tokens. Key properties:
+
+- **Non-rebasing** - Your cSSV balance stays constant; it doesn't auto-increase
+- **Transferable** - Can be transferred, traded, or used in DeFi protocols
+- **Index-based rewards** - ETH rewards accrue separately via an increasing reward index
+- **Initial 1:1 ratio** - When you stake SSV, you initially receive equal amounts of cSSV
+
+cSSV represents your staked position and determines your share of network fee rewards. When you unstake, cSSV is burned and you receive back your original SSV plus any unclaimed rewards.
+
 ### Custodial Staking
 
 Centralized service that manages the entire ETH staking process on behalf of the user and retains custody over user private validator keys and withdrawal keys. Custodial staking risks include: severe slashing penalties, reduced overall rewards and increased likelihood of attack on user keys as they are held in a centralized fashion by the service.
@@ -35,6 +58,12 @@ A cryptographic process to generate a shared public and private key set, calcula
 
 Distributed Validator Technology is another name for SSV (Secret Shared Validator). SSV can also be referred to as DVT because the validator is distributed over multiple non-trusting nodes.
 
+### Effective Balance (EB)
+
+The active stake balance of a validator on the Beacon Chain, used to calculate rewards and voting weight. After Ethereum's Pectra upgrade, validators can have variable effective balances from 32 to 2048 ETH (previously fixed at 32 ETH).
+
+In SSV Network, effective balances are reported by oracles and used to calculate fair fee distribution through vUnits (virtual units). ETH clusters pay fees proportional to their validators' actual effective balances, while legacy SSV clusters use the traditional validator count method.
+
 ### Epochs & Slots
 
 An epoch lasts approximately 6.4 minutes, and includes 32 slots. A slot lasts 12 seconds, during and is the time period in which a randomly selected validator proposes a block.
@@ -93,6 +122,12 @@ Applying secure Multi-Party Computation (MPC) to secret sharing allows for KeySh
 
 A service that provides streamlined Ethereum validator set-up and management, but does not hold user private validator keys AND withdrawal keys. Allowing users to maximize staking returns, mitigate security risks and retain complete control over their assets.
 
+### Oracle (SSV Network)
+
+In SSV Network, oracles are permissioned entities that report validator effective balances from the Beacon Chain to the smart contracts. In v1, there are 4 oracles that require 75% weight consensus to commit balance updates.
+
+Oracles are supported by SSV stakers, whose staked weight is automatically delegated across all oracles. This oracle system enables fair fee calculation for variable-balance validators post-Pectra.
+
 ### Operator
 
 Individuals or institutions that provide the hardware infrastructure, run the SSV protocol, and manage validator KeyShares on behalf of users (stakers). Operators collect fees from stakers in SSV tokens in return for operating their validator(s) on ssv.network. Each operator is ranked on a scale of 0-100% by the DAO based on the overall quality of service they provide.
@@ -128,26 +163,54 @@ The SSV Node software maintain peer-to-peer connections with other Nodes to hand
 
 ### SSV Token
 
-ssv.network allows access to a decentralized ETH staking infrastructure with SSV token as the protocol’s native token. It has 3 main purposes:
+ssv.network allows access to a decentralized ETH staking infrastructure with SSV token as the protocol's native token. It has 4 main purposes:
 
+* **Staking** – Stake SSV to earn ETH rewards from network fees and support oracle infrastructure
 * **Governance** – Submitting votes and voting on DAO proposals
-* **Fees** – Operators receive SSV tokens from Stakers for managing and operating validators on their behalf
+* **Payments** – The network receives fees paid in ETH by clusters, and the accrued ETH is converted into value for SSV stakers through the staking mechanism
 * **Grants** – DAO funding for developers and contributors helping to grow the network
 
+When you stake SSV, you receive cSSV tokens and earn real ETH yield from network activity, making SSV an "ETH Accrual Token."
+
+### SSV Staker
+
+An SSV token holder who stakes their SSV tokens to earn ETH rewards from network fees. By staking, they also contribute voting weight to the network's oracle system, which reports validator effective balances to the blockchain.
+
 ### Staker
 
-Services or individual ETH holders that wish to leverage SSV/DVT technology for optimal liveness, security and decentralization of their validator(s). Stakers put 32 ETH “at stake” for each validator they want to run. In the PoS consensus mechanism, validators secure the Ethereum blockchain and earn ETH rewards in return for doing so.
+Services or individual ETH holders that wish to leverage SSV/DVT technology for optimal liveness, security and decentralization of their validator(s). Stakers put 32 ETH "at stake" for each validator they want to run. In the PoS consensus mechanism, validators secure the Ethereum blockchain and earn ETH rewards in return for doing so.
+
+### SSV Staking
+
+The process of staking SSV tokens to earn ETH rewards from network fees. SSV Staking also contributes to the network's oracle infrastructure by providing voting weight for effective balance reporting.
 
 ### Staking
 
-Staking is the contributory action of running a node in a PoS consensus mechanism blockchain. One must ‘put at stake’ a certain amount of network tokens in order to participate in securing the blockchain by verifying and adding blocks. On Ethereum, the minimum threshold to participate as a validator is 32 ETH. Validators will earn ETH rewards for honestly attesting to and adding blocks. A validator risks decreasing their stake by participating in malicious behaviors or for time spent offline, disconnected from the network.
+Staking is the contributory action of running a node in a PoS consensus mechanism blockchain. One must 'put at stake' a certain amount of network tokens in order to participate in securing the blockchain by verifying and adding blocks. On Ethereum, the minimum threshold to participate as a validator is 32 ETH. Validators will earn ETH rewards for honestly attesting to and adding blocks. A validator risks decreasing their stake by participating in malicious behaviors or for time spent offline, disconnected from the network.
 
 ### Total Value Locked (TVL)
 
 The total amount of ETH in USD (or other currency) that is “locked-up” by stakers running validators on the blockchain. TVL = (# of validators on the network) x (current price of Ethereum).
 
 ### Validator
 
-A validator is responsible for confirming transactions and proposing new blocks on the Ethereum blockchain. In order to run a validator, one must put 32 ETH ‘at stake’, which is subject to increase (or decrease) as the validator performs its assigned duties. A validator is different from the comparable concept of a miner on the legacy Ethereum chain, as validators are called upon by the PoS protocol to propose and validate emerging blocks rather than compete for their generation.
+A validator is responsible for confirming transactions and proposing new blocks on the Ethereum blockchain. In order to run a validator, one must put 32 ETH 'at stake', which is subject to increase (or decrease) as the validator performs its assigned duties. A validator is different from the comparable concept of a miner on the legacy Ethereum chain, as validators are called upon by the PoS protocol to propose and validate emerging blocks rather than compete for their generation.
 
 An SSV validator is one that is run on ssv.network and employs SSV technology to split the validator key into 4 KeyShares for the purposes of distributing the validator over multiple nodes for redundancy and fault-tolerance.
+
+Post-Pectra, validators can have variable effective balances from 32 to 2048 ETH.
+
+### vUnits (Virtual Units)
+
+A measurement unit used in ETH clusters to calculate fees proportional to validator effective balance. Calculated as:
+
+```
+vUnits = (effectiveBalance / 32 ETH) × 100
+```
+
+Examples:
+- 32 ETH validator = 100 vUnits
+- 64 ETH validator = 200 vUnits
+- 2048 ETH validator = 6400 vUnits
+
+This ensures that validators with higher effective balances pay proportionally higher fees, as they generate more rewards. Legacy SSV clusters do not use vUnits and treat all validators equally regardless of effective balance.
@@ -4,14 +4,28 @@ sidebar_position: 3
 
 # SSV Token
 
-Secret Shared Validator ($SSV) is the native token of [ssv.network](https://ssv.network/).&#x20;
+Secret Shared Validator ($SSV) is the native token of [ssv.network](https://ssv.network/).
 
-$SSV's main use cases are payments and governance.&#x20;
+$SSV's main use cases are payments, staking, and governance.
 
-* **Payments** - serve as a way for stakers to compensate operators for managing their validators
-* **Governance** - a way to participate in ssv.network related decision-making and treasury allocations.&#x20;
+* **Payments** - Serve as a way for stakers to compensate operators for managing their validators (Note: this applies to legacy clusters that pay fees in SSV; newer clusters pay fees in ETH)
+* **Staking** - Stake SSV tokens to earn ETH rewards from network fees and support oracle infrastructure
+* **Governance** - A way to participate in ssv.network related decision-making and treasury allocations
 
-$SSV is playing a pivotal role in the network’s ability to harness a community and motivate the right stakeholders to meaningfully contribute to the network.
+$SSV is playing a pivotal role in the network's ability to harness a community and motivate the right stakeholders to meaningfully contribute to the network.
+
+## SSV as an ETH Accrual Token
+
+SSV Network has evolved to enable the SSV token to accrue real ETH revenue from network activity. Token holders can now stake their SSV to earn ETH rewards generated from network fees paid by clusters. Staked SSV also supports the network's oracle infrastructure by providing voting weight for effective balance reporting.
+
+**Key benefits:**
+* Earn real ETH yield from actual network activity
+* Support the network's oracle system for validator balance reporting
+* Participate in securing decentralized oracle consensus
+
+As more validators use SSV Network, more ETH fees flow to SSV stakers, aligning token value with protocol growth.
+
+Learn more in the [SSV Staking Guide](/stakers/ssv-staking/).
 
 ### **Tokenomics**
 

@@ -5,10 +5,55 @@ sidebar_position: 1
 
 # Tokenomics
 
-The ssv.network utilizes its native SSV token to facilitate payments between stakers and SSV node operators to maintain their validators. Operators maintain validators by reaching a consensus with clusters of other operators to perform network duties on the beacon chain, thereby generating Ethereum staking rewards for stakers.
+SSV Network has evolved to include both payment mechanisms and staking utilities, creating a comprehensive economic model that aligns network growth with token holder rewards.
 
-Operators receive SSV payments and generate ETH rewards for stakers. Stakers pay SSV and receive generated ETH rewards in return.
+## Network Payments: ETH Clusters
 
+The network uses ETH-based payments for clusters and operators:
 
-![Operators receive SSV payments and generate ETH rewards for stakers. Stakers pay SSV and receive generated ETH rewards in return.](/img/tokenomics-readme-1.avif)
-*Operators receive SSV payments and generate ETH rewards for stakers. Stakers pay SSV and receive generated ETH rewards in return.*
+* **Clusters pay in ETH** - Deposit ETH to cover operator and network fees
+* **Operators earn in ETH** - Receive ETH payments for managing validators
+* **Network fees in ETH** - A portion of fees flows to the protocol
+
+This transition from SSV token payments to ETH enables the network to generate real ETH revenue that can be distributed to SSV stakers.
+
+### Legacy SSV Clusters
+
+Existing SSV token-based clusters continue to operate:
+* Can migrate to ETH clusters via `migrateClusterToETH()`
+* Operators can serve both ETH and SSV clusters during transition
+* SSV token balance refunded upon migration
+
+## SSV as an ETH Accrual Token
+
+SSV token holders can stake their tokens to earn **real ETH yield** generated from network activity. This makes SSV an **ETH Accrual Token** where network fees flow directly to stakers.
+
+When clusters pay fees in ETH, a portion flows into the SSV Staking contract and is distributed proportionally to all stakers. Staked SSV also supports the network's oracle infrastructure by providing voting weight for effective balance reporting.
+
+As the network grows and more validators use SSV, more ETH fees are generated, increasing rewards for stakers.
+
+Learn more in the [SSV Staking Guide](/stakers/ssv-staking/).
+
+## Dual Utility Model
+
+SSV token serves multiple purposes in the ecosystem:
+
+| Utility | Description | Benefit |
+|---------|-------------|---------|
+| **Staking** | Stake SSV to earn ETH from network fees | Real yield for token holders |
+| **Governance** | Vote on protocol decisions and treasury allocation | Decentralized control |
+| **Oracle Support** | Staked SSV supports oracle consensus | Network security and accuracy |
+| **Legacy Payments** | SSV tokens still used in legacy clusters | Backward compatibility |
+
+## Economic Sustainability
+
+The new economic model creates sustainable, circular value flow:
+
+1. **More ETH staked** → More validators using SSV
+2. **More validators** → More ETH fees collected
+3. **More fees** → Higher rewards for SSV stakers
+4. **Higher rewards** → Increased demand for SSV token
+5. **More SSV staked** → Stronger oracle infrastructure
+6. **Stronger network** → Attracts more ETH validators
+
+This positive feedback loop ties SSV token value directly to real network usage and revenue.