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.
When delegating to a validator, you agree to a cooldown period when you wish to undelegate. That period is currently 60 days. During the cooldown period, you will not earn rewards on your delegated SX, and you will not be able to withdraw. After 60 days, you will be able to withdraw.
When you delegate to a validator, you understand that if the validator unstakes, you will also implicitly be unstaking. That means you will be subject to the 60 day cooldown period.
Different factors come into play when choosing a validator to delegate your stake to:
- 1.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.
- 2.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.
- 3.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.
- 4.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 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.