Delegated Staking on Energy Web X
What is Delegated Staking?
Delegated staking allows $EWT holders to directly participate in securing the Energy Web X network by nominating (delegating stake to) active collator candidates. In return, delegators share in block production rewards and network growth rewards generated by the underlying staking system.
Delegated staking involves direct interaction with the Parachain Staking Pallet, whereby in the staking call the user must select a collator candidate and amount of $EWT.
Unlike staking through the Liquid Staking Pallet he staked balance becomes locked and non-transferable.
How Delegated Staking Works on EWX
Energy Web X uses the Parachain Staking Pallet to govern network security, growth and reward distribution.
The Delegated Staking Flow:
Users Delegate Stake to Collators
For each stake delegation, delegators choose a collator from the candidate pool with which to bond their $EWT, this is called a nomination.
Each nomination increases the collator's total stake.
Since collators are ranked by total stake before the top set (defined by the
topSelectedparameter) is chosen for block authorship each era, increasing a collator’s stake improves their chances of being selected and therefore earning more rewards.
Collators Produce Blocks
The top set of collators, ranked by total stake, produce block during the era and receive points.
Collators and Delegators Share in Rewards
When rewards are distributed, either at the end of an era or during a growth event, the total reward pot is allocated to collators based on the points they earned for that period.
Delegators then receive a share of their nominated collator’s rewards, proportional to their stake contribution and minus the collator’s commission.
Note that staking rewards are distributed to the delegators' free balance, where they can be restaked by the user.
Token holders can perform delegated staking either through the EWX Staking Web App, within supported third-party wallets, or through Polkadot.js.
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