Validators perform two functions. First, they insure stability of the SETT elasticity by Selling and Buying DNAR & SETT to the SERP (Setheum Elastic Reserve Protocol) (The process of buying back and selling DNAR & SETT could change to SettIndex, we are still evaluating which is the best, so it's subject to change at the moment). Their second role is to participate in the consensus mechanism to produce the blocks based on validity statements from other validators. Any instances of non-compliance with the consensus algorithms result in punishment by removal of some or all of the validator’s staked DNAR, thereby discouraging bad actors. Good performance, however, will be rewarded, with validators receiving block rewards (including transaction fees) in the form of DNAR in exchange for their activities.