📜How to Delegate SX
Delegate your SX to earn rewards and contribute to the security of SX
You can delegate your SX to a validator to a percentage of that validator's rewards, by stake.
Choosing a validator
Different factors come into play when choosing a validator to delegate your stake to:
Uptime % - Since a validator and any associated delegators can only earn rewards on successfully reported outcomes, a value of closer to 100% will ensure that you will be rewarded SXBet betting fees for most if not every market being settled.
Commission % - A lower validator commission percentage will mean that you will get to keep a greater percentage of your rewards earned for all outcomes that your validator successfully reports.
Total staked % - The total staked amount for a validator correlates to the amount of trust a validator and any associated delegators have in the ability for a validator to successfully report outcomes. Additionally, a delegator staking under a validator with a high total stake can also trust that their validator can have a better say in any SX governance proposal votes.
Staked by delegators - Similar to the total staked %, the amount staked by other delegators indicates the trust that other delegators have in the validator.
Consider the example below involving 3 different validators:
Validator
Commission
Total Staked
Uptime
Staked by delegators
A
8%
50%
90%
25k
B
2%
40%
50%
10k
C
5%
10%
99.99%
2k
Validator A has the highest commission rate, although they also have the highest amount staked by other delegators and a decent uptime percentage. Validator B on the other hand has the lowest commission rate out of the 3 validators but Validator B also has the lowest uptime percentage. It is very therefore very unlikely that a delegator will earn more rewards staking under Validator B over Validator A.
Looking at Validator C, they appear to have the highest uptime percentage with a lower commission rate than Validator A. Although appealing, as very few delegators have delegated to Validator C, it is likely that they are a new validator to the network. Users should consider if they would rather take a higher risk for a potentially higher return, or to take less risk for a slightly lower return.
Ultimately it is up to the user to decide which validator would be the best to delegate their stake to based on a tradeoff of trust, ethics, profitability, and protocol governance.
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