Questions, help me

Support
#1

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?

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#2

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:

  • 10000 STAKE is placed in a pool by the validator (10%)
  • 90000 STAKE is placed by delegators (90%)
  • Weekly staking epoch reward per pool is 300 STAKE

At the end of the staking epoch…

  • Validator receives 90 STAKE (30%)
  • Delegators receive 210 STAKE (70%). Delegators split this amount based on their percentage within the 90000. So if 1 delegator has put in 45,000, a second has put in 36,0000 and a 3rd has put in 9000, they will receive 105 STAKE (50%), 84 STAKE (40%), & 21 STAKE (10%) respectively.

Example 2:

  • 10000 STAKE is placed in a pool by the validator (40%)
  • 15000 STAKE is placed by delegators (60%)
  • Weekly staking epoch reward per pool is 75 STAKE

At the end of the staking epoch…

  • Validator receives 30 STAKE (40%)
  • Delegators receive 45 STAKE (60%). Delegators split this amount based on their percentage within the 15000. So if 1 delegator has put in 10000, a second 3500 and a 3rd 1500, they will receive ~ 30 STAKE (66.6%), 10.5 STAKE (23.3%), & 4.5 STAKE (10%).

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:

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