Delegators

Delegators in Shibarium​

Delegators are individual users or an entity that participate in a consensus mechanism called "delegated proof of stake" (DPoS) by delegating their voting rights to a validator. In a DPoS consensus mechanism, instead of all network participants being able to validate transactions and create new blocks, only a select group of validators are chosen through a voting process. Delegators can choose to vote for a validator of their choice and delegate their voting power to that validator. The validator, in turn, uses the combined voting power of all delegators to help secure the network and validate transactions. This allows for a more efficient and scalable consensus mechanism compared to proof of work (PoW) and proof of stake (PoS) mechanism.

Delegators are people who own $BONE and choose to support the network by giving their tokens to validator nodes instead of running one themselves. They play an important role in the system by selecting which validator nodes will be responsible for validating transactions. Delegators choose to lend their tokens to Validator nodes, and as a result, they are entitled to a portion of the rewards earned by those Validators.

On the other hand, this also implies that they are exposed to the same risks as validators. For example, if a validator fails to comply with the protocol, the delegators may lose a part of their tokens in relation to the amount they had delegated to that validator.

❗Validators determine the share of rewards they want to retain for themselves by establishing a commission rate. Delegators can examine these commission rates to comprehend the allocation of rewards and the projected yield on their staked tokens for each Validator.