Delegation is the choosing validators process for the PoS consensus mechanism. When using the delegated proof of stake (DPoS), you can vote for the delegate by pooling all your coins into a centralized staking pool, which you can then bond these coins to a specific authorized person (validator)
You need to understand that your funds are not transferred from your wallet to any other wallet when you are linked with the delegate.
Validators with higher staking volume have more chances to initiate transaction validation and receive rewards. The reward in the system corresponds to the users’ delegated stake. After validating the transaction and creating the block, the Validators will share their rewards with the users who delegated them.
Things you need to pay attention to when preparing Delegate #
Delegation Fee #
Your fee will share the percentage scale with the Validator that you validate.
Ex: When you join Stake $CSPR with OriginStake for a fee of 5%, your annual profit will be 95% of the total profit calculated based on the APY of the Casper Network.
The delegation unbonding period/Thawing period #
After the user thawing period on Validator is the time users receive coins.
Example: When you stake on Casper Network through delegation, then after delegation unbonding, it could take a period of 7 ERA (about 14 hours). It means you can not receive additional rewards or use coins on other activities for around 14 hours.