Delegated staking means instead of staking directly with the protocol, you stake with an existing validator. Hence why it is called 'delegated' staking.
Validators are independent, distributed nodes performing essential services for the Arable protocol. You can read more about validators here: Validators
Delegated staking provides two functions to the protocol:
- provide economic security
- participation in governance
When you stake, you receive rewards in the form of more ACRE and get the opportunity to participate in the protocol's governance by voting on proposals.
Choosing a validator
When choosing a validator, there are a few factors to consider:
A validator needs to be dependable and behave properly in the network. If it does not, it runs the risk of slashing. Slashing means that a percentage of staked tokens, including your delegated stake, will be taken away.
A validator is expected to be online and reachable virtually 24/7. You can view uptime statistics on each validator in the Arable app.
Since every validator runs their node on an individual server, they are responsible for keeping the server secure from any hacks.
Many validators already have experience running validators for other protocols. If they run those validators dependably, there is a good chance they will do a good job here as well. Check their socials (if they provide them) and research other projects they might be engaged in.
You can spread your risk by staking with multiple validators.
Validators take a cut from your rewards by taking a commission. Each validator sets its own commission rate anywhere from 0% to 25%.
Arable allows stakeholders to shape the future of the protocol.
Proposals will be put up to be voted on by stakeholders from time to time. The weight of their vote is determined by the amount of ACRE they stake.
The kind of proposals include, but are not limited to:
- supported synths tokens
- supported collateral tokens.