A holder of any coin in the Minter network can become a delegator. In order to become a delegator, the user must send a delegation transaction in which they indicate how many coins they want to bond to a particular validator. If the delegator decides to withdraw some or all of the coins, they can at any time make an appropriate request. The application will be processed within 30 days after filing.
A delegator is a person who cannot or does not want to become a validator (read here for details on who a validator is and how to become one) but still wants to receive rewards. The validators are chosen not on the basis of their personal stake, but on the basis of a total stake, which is the sum of their own stake and the stake that is delegated to them. This allows one to become a validator if their personal stake is not enough. If the validator does poor work, their delegators can withdraw their coins, thereby reducing the validator’s general stake. This property protects delegators from validators who misbehave.
As for rewards, the validators and delegators differ in that the validators receive a commission from the rewards of their delegators. The commission is known to the delegators in advance and cannot be changed. In terms of risk, the amount of coins of the delegators can be significantly reduced if their validator violates the rules. Delegators should pay special attention to the commissions of validators.
The role of the delegator is by no means passive. The delegator needs to not only carefully select the validators but also closely monitor them after delegating their coins.
Delegators receive block rewards and transaction commissions in proportion to their stakes in accordance with the conditions established by the validators. It is important to remember that delegators share risks with their validators, so do not “put all your eggs in one basket” but diversify your stakes between the best candidates in your opinion.
How to Become a Delegator?
1. Register in the Minter console.
2. After registering and logging in, open the “Delegation” section.
3. Request the coins. Launch the Telegram bot using the “Start” button and register (if you have already completed step 1, you need to enter your login and password). Then press the “Settings” and “Get 100 MNT” buttons (these coins are needed for testing the network operation):
4. Enter the public key of your validator, the stake (the amount you are going to delegate to that particular validator), and the desired coin to pay the commission. Then click on the “Delegate” button.
5. After you delegate coins to the masternode, you will see the message “Tx sent” under the “Delegate” button.
Attention! Before delegation, be sure to carefully check your potential validator for the following parameters: commission size, uptime, and total stake. You can do this with the help of live аnalytics, and also here. Do not choose unscrupulous validators!
Pay attention to the search bar in the upper right corner. Using it, you can easily find information about the masternodes that interest you.
What should you do if you decide that the validator you have chosen is doing poorly or is performing their duties incompetently? You can withdraw the stake you delegated. The algorithm for returning your stake:
1. Go to the section “Delegation” and see the lower field “Unbond.”
2. Enter the masternode’s public key, the volume of the stake you want to withdraw from it, and the desired coin for payment of the commission. Click “Unbond.”
3. Please note that the process will be completed within 30 days from the date of application!
Alternative Methods of Delegation
The delegation procedure can be performed using your Bip Wallet in Telegram.
First, you need to sign in to your account. Then select “Delegation” and follow the instructions given.
As a result, you will see the following information:
It is worth noting that delegated funds begin to generate revenue within 120 blocks, with the payouts being accrued every 12 blocks.
It is necessary to remember that, although the role of the delegator looks passive, it implies an important function of controlling the validators. Do not neglect it. Your actions and your “active delegator position” affect your own and other people’s coins. Even if you trust one or another validator by almost 100%, one more test will not be harmful.