Delegation is the process of binding one’s coins to a validator, using a special transaction. The user delegating coins is called a delegator and after binding the coins, the delegated funds are locked in the user’s account, i.e. they are not sent anywhere, but are NOT displayed on the user’s balance. However, these funds are displayed in a common validator stake, increasing its weight relative to other validators and the strength of the consensus mechanism voice. The validator is not able to manage the delegated funds in any way, he/she does not have access to them, and cannot spend them or withdraw them.
There’s a competition among the validators. The ones with a large stake are most often involved in consensus-building and receive more rewards.
Work Net has an unbound operation for delegated coins. This transaction can be initiated and sent to the network either by the user or automatically by the validator or software. In the first case, the funds will be immediately available on the user’s balance. In the second and third cases, the funds will be available to the user in 432,000 blocks (- 30 days).
Validators are fined for poor quality or incorrect work. That is why the number of delegated coins may decrease due to the number of fines. The delegator is personally responsible for his/her choice of validator, so naturally, this choice must be made very carefully.
Coin delegation takes place in so-called slots. Each validator has 1000 slots. But if the delegator has used their full 1000 slots allocation, the next delegator must have an amount greater than the lowest allocation in order to displace that delegator themselves.
For delegation to the validator(s), the user receives a reward, which is credited every 120 blocks.
The amount of reward depends on a number of factors: the number of delegated coins, the number of validators, the total amount of stake, the size of the basic block reward, slashes imposed, etc.
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