I really like the idea of the POSDAO. i have a questions:
What does the 70/30% split means? How is a validator selected to which group, and what do they get?
I really like the idea of the POSDAO. i have a questions:
What does the 70/30% split means? How is a validator selected to which group, and what do they get?
Hi - thanks for the questions!
70/30 Split
The 70/30 split refers to the minimum percentage validators will receive in STAKE rewards - 30%. Validators always receive at least 30% of the pool reward, and delegators never receive more than 70% of the reward (70 delegator/ 30 validator)
If delegators hold more than 70% of the total STAKE amount in a pool, validators still receive 30%. If they hold less than 70%, validators and delegators split the amount according to the percentage they hold.
For example, If a validator has 60% of STAKE in a pool and delegators have 40%, the split looks like 40d/60v. However, if delegators have 95% and a validator has 5%, the validator receives 30% (70d/30v).
Here are a few hypothetical examples for understanding (does not reflect actual reward accrual)
Example 1:
At the end of the staking epoch…
Example 2:
At the end of the staking epoch…
How is a validator selected
Validators start as candidates - they must put in the minimum amount of STAKE to announce their candidacy. Delegators can then place STAKE on these candidates. When the next staking epoch starts, validators are chosen based on their stake amounts and a random number (note this occurs only if there are more than 19 validator pools. If less than 19, all are selected).
If a selected validator does not perform their duties appropriately (skipping too many random number reveals or other malicious behavior) they may be removed and banned from the protocol.
For more information, please see:
- POSDAO Whitepaper recap
- STAKE and staking section of xDai gitbook (shows transition schedule and minimum stake amounts)