🔒 What Is Delegation?
Delegation on the Decimal network, which uses a Delegated Proof of Stake (DPoS) system, can be compared to buying equipment for BTC mining. You "lend" your tokens to a validator to support the network's operation and receive rewards in return. The key advantage of this process is that all your tokens always remain in your wallet—they don't need to be sent anywhere. This mechanism allows for efficient management of block creation and verification, ensuring fast transaction processing.
🚀 How to Delegate KOLLABIUM Tokens
To delegate your tokens and start earning rewards, follow these steps:
- 1️⃣Log into your account in KollabiuM.
- 2️⃣Go to the "Wallet" section.
- 3️⃣Click the "Delegate" button.
- 4️⃣Specify the amount of KOLLABIUM tokens you wish to delegate.
- 5️⃣Confirm the transaction with the code sent to your email and the Telegram bot @KollabiumBot.
↩️ How to Undelegate KOLLABIUM Tokens
If you want to withdraw your tokens from delegation, follow these steps:
- 1️⃣Log into your account in KollabiuM.
- 2️⃣Go to the "Wallet".
- 3️⃣Click the "Undelegate" button.
- 4️⃣Specify the amount of tokens to withdraw.
- 5️⃣Confirm the transaction in the same way—using the code from your email and the Telegram bot.
⚠️ Important Points
- 🔐Security: All delegation and undelegation transactions are confirmed with a digital code sent to your email and Telegram bot, ensuring a high level of security.
- ❄️Frozen Delegation Balance: When you delegate, your tokens remain in your wallet but are shown on a frozen balance. You remain their full owner.
- 💰Rewards: For delegating, you receive a share of the validator's rewards. Rewards start crediting to your balance every 15 minutes. The reward amount is not fixed and varies based on network policy and validator efficiency.
- 📈Minimum Amount: Delegation and undelegation are possible for amounts of 1000 KOLLABIUM or more.
- 🗓️Undelegation Process and Period: After confirming a request with a code, the specified amount of tokens is debited from the "Delegation" balance and appears in the "Undelegation History". The withdrawal process takes 15 days according to the Decimal blockchain's terms. After this period, the funds will be automatically credited to your main balance.
- ⏳Code Validity: The confirmation code sent to your email and Telegram bot is valid for 10 minutes.
- 🔄Requesting a New Code: If you don't confirm the transaction in time, you can request a new code from your transaction history.
- 🪙Network Fee: Every delegation and undelegation transaction requires a small fee on the Decimal network. Ensure you have enough funds in your main balance to cover it.
📊 How Are Delegation Rewards Calculated?
The calculation of delegation rewards is a complex mechanism that depends on several dynamic factors within the Decimal network. We'll try to explain it simply.
- ⚖️The key factor is the "cost of delegation." This, in turn, depends on the total coin emission, the reserve size, the CRR (Constant Reserve Ratio), and most importantly, the total volume of coins currently delegated across the entire network.
- 📈A simple rule: The more coins in the market that are delegated, the lower the return becomes. Conversely, if a large volume of coins appears on the network (e.g., after a conversion) but isn't delegated, the return for those already delegating increases.
Reward Conversion to KOLLABIUM
It's very important to understand that the base reward for delegation in the Decimal network is paid in the network's native coin—DEL. In the KollabiuM social network, we have implemented a convenient mechanism to automatically convert these rewards into the KOLLABIUM token.
This is where the dependency on the market exchange rate of KOLLABIUM to DEL comes into play. The higher the value of the KOLLABIUM token, the smaller the quantity you receive for the same reward amount in DEL, but the value of each KOLLABIUM token received is higher.
Example Calculation:
Let's say your daily delegation reward is 10 DEL.
-
🔹If at the time of crediting,
the rate is 1 KOLLABIUM = 0.7 DEL, you will receive:
10 / 0.7 = 14.285 KOLLABIUM. -
🔹If the rate has increased, and
1 KOLLABIUM = 0.8 DEL, you will receive:
10 / 0.8 = 12.5 KOLLABIUM.
Although the number of KOLLABIUM tokens has decreased, their total market value has remained the same or even increased.
🤔 Frequently Asked Questions (FAQ)
What is token delegation in KollabiuM?
Token delegation is a process where you "lend" your tokens to support the operation of the Decimal blockchain in exchange for rewards. Your tokens always remain in your wallet during this process.
What are the benefits of delegating tokens?
You receive rewards for supporting the network's stability and security, and you also contribute to its development.
How do I start the delegation process in my KollabiuM wallet?
In the "Wallet" section, click the "Delegate" button, specify the amount, and confirm the transaction with the code from your email and Telegram bot.
Can I cancel my token delegation?
Yes, you can initiate the undelegation process. However, according to the Decimal blockchain's terms, it will take 15 days for the tokens to return to your main balance.
What are the risks associated with token delegation?
The main risk is the temporary unavailability of your tokens during the 15-day undelegation period. The tokens themselves do not leave your wallet, so there is no risk of losing them.
How often will I receive rewards?
Delegation rewards are credited to your balance every 15 minutes.
Does the amount of delegated tokens affect my rewards?
Yes, the more KOLLABIUM tokens you delegate, the higher your reward will be.
What is the minimum limit for delegation?
The minimum amount for both delegation and undelegation is 1000 KOLLABIUM.
⚖️ Important Note: Delegation Is Not an Investment
It's important to understand that delegation is not an investment tool in the classic sense, as it does not offer a fixed interest rate. The size of your reward is dynamic and depends on many factors within the Decimal network, such as the total amount of delegated coins and other network parameters. It is rather a mechanism for participating in the support of the blockchain and receiving a reward for your contribution.