Delegator
A delegator is someone who assigns their stake to a validator and receives rewards as a result. By assigning their stake, delegators can engage in the network and earn rewards without needing the specialized knowledge or hardware necessary to operate a validator node on their own - you can do it straight from your smartphone or computer.
When delegating, these are the things you need to specify:
- The name/ID of the validator you're delegating to
- The stake duration
- The stake amount
There are two types of staking: unlocked staking and locked staking.
If you decide to stake your tokens without locking them up, you will earn the smallest possible reward rate. Conversely, committing to any lock-up duration, even the minimum one, will earn you higher rewards in comparison to not locking them up at all.
Minimum stake amount: 1 TQF
Unlocked staking: No lock-up, earn base reward rate (smallest possible reward rate)
Minimum lock-up period: 12 days, earning the minimum reward rate
Maximum lock-up period: 1095 days, earning the maximum reward rate
Unbonding time: 7 days (time between unstaking and funds becoming available)
APY on staking: ~1.8% for stake-as-you-go, linear up to ~8% for 1095 days lock
Delegation fee: The network has a set fixed fee of 12% on staking rewards paid from stakers to validators for running their nodes.
Upon delegating your stake, your tokens remain locked for the chosen period. However, if circumstances demand an early unlock, you do have that option. Just remember, this leads to a 50% reduction in your accumulated rewards.