Delegation: Difference between revisions
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|description= Delegating coins in the Decimal Blockchain | |description= Delegating coins in the Decimal Blockchain | ||
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'''Delegation''', or '''delegating''' is the process of linking the delegator`s [[coin | '''Delegation''', or '''delegating''' is the process of linking the [[delegator]]`s [[stake|coin stake]] to the selected [[validator]]. | ||
Delegation is carried out due to a special [[transaction]] on the [[Decimal network]] in which funds are blocked on the user's account, while increasing the stake of the selected validator. Any user of the network can delegate their [[DEL|DEL coins]], as well as any [[custom coin|custom coins]] and [[NFT]] [[issue]]d on the Decimal network. | Delegation is carried out due to a special [[transaction]] on the [[Decimal network]] in which funds are blocked on the user's account, while increasing the stake of the selected validator. Any user of the network can delegate their [[DEL|DEL coins]], as well as any [[custom coin|custom coins]] and [[NFT]] [[issue]]d on the Decimal network. | ||
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'''Delegation performs several important functions on the network''': | '''Delegation performs several important functions on the network''': | ||
1. '''The power | 1. '''The voting power''' | ||
By delegating funds, each user increases the validator's stake. The larger the total stake of the validator, the higher it rises in the rating of validators. In case of changes on the blockchain, the proposal put to the vote by the developers is accepted by the first nine validators in terms of voting power. | By delegating funds, each user increases the validator's stake. The larger the total stake of the validator, the higher it rises in the rating of validators. In case of changes on the blockchain, the proposal put to the vote by the developers is accepted by the first nine validators in terms of voting power. | ||
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Technically, when delegating, the validator does not get access to the delegator's funds, since these funds actually remain in the delegator's account. Delegated coins are linked (bonded) to the validator's account balance, while the owner of the coins simply cannot dispose of the delegated funds until he unlinks (unbonds) them from the validator with the appropriate request. The validator does not have access to the delegated coins and cannot withdraw or spend them. | Technically, when delegating, the validator does not get access to the delegator's funds, since these funds actually remain in the delegator's account. Delegated coins are linked (bonded) to the validator's account balance, while the owner of the coins simply cannot dispose of the delegated funds until he unlinks (unbonds) them from the validator with the appropriate request. The validator does not have access to the delegated coins and cannot withdraw or spend them. | ||
== Delegation fee == | |||
In the [[Decimal blockchain]], the transaction [[fee]] consists of a fixed rate for the transaction type and the cost per unit of transaction volume in bytes. | |||
'''Fixed rate:''' 1 unit = 0.001 [[DEL]] | |||
The delegation fee is 200 units, which is equal to 0.2 DEL. | |||
== What if the validator goes offline? == | |||
If, for any reason, the validator's node is disconnected for a long period of time or permanently, rewards will not be accrued. However, all delegated funds remain delegated until the delegator creates an "undelegation transaction". After that, the funds will be reflected in the balance after 432,000 blocks (~30 days). | |||
== How to choose a validator? == | |||
{{Main article|Instruction:How to choose a validator}} | |||
Before delegating your funds, it is necessary to choose a validator based on various criteria: | |||
'''Validator's fee.''' | |||
It doesn’t matter to whom specifically you delegate your funds — you will receive the same reward. However, each validator can set their commission from 0 to 100 % of the rewards paid to their delegators. Once the validator’s node is launched, the commission cannot be changed, so it is more beneficial to choose a validator with the lowest commission. | |||
'''Validator reliability.''' | |||
A validator invests real money in servers and other conditions for uninterrupted internet connection because otherwise, they will lose their profit and the profit of their delegators due to penalties. It is important to approach this issue seriously and study the history of penalties received by the validator (if any), as well as information about the technical and software equipment of the node. | |||
'''Bonuses, promotions, cashbacks'''. | |||
To attract delegators to their node, each validator can offer various bonuses, such as cashback in the form of daily commission refunds to the delegator's account. | |||
== How many coins to delegate? == | |||
Each validator has 1000 [[slot|slots]] for delegation. Each individual slot is intended for placing funds from 1 delegator in a separate coin. For example, if a delegator sends 2 amounts: 1000 DEL and 1000 SOMEcoin, they will occupy 2 slots. If a delegator sends 1000 DEL first and then another 2000 DEL, these coins will be summed up in 1 slot. | |||
All slots are sorted by size in terms of DEL. Once all 1000 slots of a validator are occupied, there is a restriction on the amount of delegated funds. Any new 1001st delegator cannot delegate an amount less than the sum in slot #1000. When a new delegator sends an amount greater than in slot #1000, their funds take their place, displacing a smaller stake. The funds from slot #1000 will be undelegated and instantly returned (unlocked) to the delegator's account. | |||
[[File:Wiki-2020-09-03_18-11-07.png|700px|thumb|left]]<br clear="all"> | |||
You can check the information about the number of occupied slots by validators in the [[Decimal console|console]]. Go to the [[Decimal Explorer|Explorer]], select the '''Validators''' tab — there you will see a list of all validators and information about them. | |||
== See also == | == See also == | ||
* [[Delegator]] | |||
* [[Instruction:Delegation]] | * [[Instruction:Delegation]] | ||
* [[Instruction:How to delegate your coins|How to delegate your coins in Decimal Blockchain]] | * [[Instruction:How to delegate your coins|How to delegate your coins in Decimal Blockchain]] | ||
* [[Staking]] | |||
{{interwiki|ru=Делегирование}} | {{interwiki|ru=Делегирование}} | ||
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[[Category:Transactions]] | [[Category:Transactions]] | ||
[[Category:Commoninfo]] | [[Category:Commoninfo]] | ||
[[Category:Delegating]] | |||
Latest revision as of 13:32, 15 May 2024
Delegation, or delegating is the process of linking the delegator`s coin stake to the selected validator.
Delegation is carried out due to a special transaction on the Decimal network in which funds are blocked on the user's account, while increasing the stake of the selected validator. Any user of the network can delegate their DEL coins, as well as any custom coins and NFT issued on the Decimal network.
Delegation performs several important functions on the network:
1. The voting power
By delegating funds, each user increases the validator's stake. The larger the total stake of the validator, the higher it rises in the rating of validators. In case of changes on the blockchain, the proposal put to the vote by the developers is accepted by the first nine validators in terms of voting power.
2. Reward
Generation of new DEL coins occurs only on delegated coins.
3. Security
Technically, when delegating, the validator does not get access to the delegator's funds, since these funds actually remain in the delegator's account. Delegated coins are linked (bonded) to the validator's account balance, while the owner of the coins simply cannot dispose of the delegated funds until he unlinks (unbonds) them from the validator with the appropriate request. The validator does not have access to the delegated coins and cannot withdraw or spend them.
Delegation fee
In the Decimal blockchain, the transaction fee consists of a fixed rate for the transaction type and the cost per unit of transaction volume in bytes.
Fixed rate: 1 unit = 0.001 DEL
The delegation fee is 200 units, which is equal to 0.2 DEL.
What if the validator goes offline?
If, for any reason, the validator's node is disconnected for a long period of time or permanently, rewards will not be accrued. However, all delegated funds remain delegated until the delegator creates an "undelegation transaction". After that, the funds will be reflected in the balance after 432,000 blocks (~30 days).
How to choose a validator?
Main article: Instruction:How to choose a validator
Before delegating your funds, it is necessary to choose a validator based on various criteria:
Validator's fee.
It doesn’t matter to whom specifically you delegate your funds — you will receive the same reward. However, each validator can set their commission from 0 to 100 % of the rewards paid to their delegators. Once the validator’s node is launched, the commission cannot be changed, so it is more beneficial to choose a validator with the lowest commission.
Validator reliability.
A validator invests real money in servers and other conditions for uninterrupted internet connection because otherwise, they will lose their profit and the profit of their delegators due to penalties. It is important to approach this issue seriously and study the history of penalties received by the validator (if any), as well as information about the technical and software equipment of the node.
Bonuses, promotions, cashbacks.
To attract delegators to their node, each validator can offer various bonuses, such as cashback in the form of daily commission refunds to the delegator's account.
How many coins to delegate?
Each validator has 1000 slots for delegation. Each individual slot is intended for placing funds from 1 delegator in a separate coin. For example, if a delegator sends 2 amounts: 1000 DEL and 1000 SOMEcoin, they will occupy 2 slots. If a delegator sends 1000 DEL first and then another 2000 DEL, these coins will be summed up in 1 slot.
All slots are sorted by size in terms of DEL. Once all 1000 slots of a validator are occupied, there is a restriction on the amount of delegated funds. Any new 1001st delegator cannot delegate an amount less than the sum in slot #1000. When a new delegator sends an amount greater than in slot #1000, their funds take their place, displacing a smaller stake. The funds from slot #1000 will be undelegated and instantly returned (unlocked) to the delegator's account.
You can check the information about the number of occupied slots by validators in the console. Go to the Explorer, select the Validators tab — there you will see a list of all validators and information about them.