# Delegators (Stakers) ## **What Are Delegators?** Delegators are all stakers who delegate their assets to validators, financially backing them to secure Mosaic Chain. By risking their capital (slashing) to support validators, delegators earn staking rewards in return. **Two types of delegators participate in Mosaic Chain's DPoS consensus:** **1. MOS Coin Holders** * Delegate MOS coins to validators * No NFT required to participate * Flexible staking across multiple validators **2. Delegator NFT Holders** * Delegate Delegator NFTs to validators * Each NFT stakes to one validator * Can combine with MOS coin staking *** ### **The Delegator's Role** Delegators are **passive participants** in Mosaic Chain, contributing to blockchain health and security indirectly. Unlike validators, delegators don't run nodes or maintain infrastructure—but they play a critical role in the network's economic security. **Two primary responsibilities:** **1. Select responsible validators** * Research commission rates, uptime, and reputation * Perform due diligence on validator performance * Monitor slashing history and track record **2. Delegate assets strategically** * Stake MOS coins and/or Delegator NFTs * Diversify across multiple validators to minimize risk * Balance reward potential with slashing risk **Key considerations:** * ✅ **No technical requirements** - No nodes, no uptime, no infrastructure * ✅ **Earn staking rewards** - Passive income from validator performance * ⚠️ **Slashing risk** - If your validator is slashed, you lose 0.1% of your stake * ⚠️ **Reward dependency** - Your earnings depend on validator performance and commission rates *** ### **Active Monitoring Recommended** While delegators are passive participants, **regular monitoring is advisable:** * Check validator performance **weekly or monthly** * Monitor uptime, slashing events, and commission changes * Be prepared to switch validators if performance declines * Rebalance your portfolio based on changing conditions **Remember:** Your validator's performance directly impacts your rewards and your capital. Passive participation doesn't mean "set and forget"—it means staying informed without running infrastructure. *** ### **Requirements to Become a Delegator** To participate as a Delegator, you need: 1. **MOS coins** - At least 50 MOS (global minimum) 2. **Choose a DPoS validator** - Research validators based on commission, uptime, and reputation 3. **Create a staking contract** - Stake your MOS coins (and/or Delegator NFT if you have one) 4. **Wait for the end of the minimum staking period** - Global minimum: 28 days / 672 sessions **Optional:** * **Delegator NFT** - Allows you to stake the NFT's nominal value in addition to MOS coins *** ### **What You Can Stake** **1. MOS Coins** * Stake MOS coins to any DPoS validator * **Everyone can stake MOS coins** (no NFT required) * Minimum: 50 MOS per staking contract * Can split your MOS across multiple validators **2. Delegator NFTs (Optional)** * Own a Delegator NFT to stake its nominal value * Each Delegator NFT can be staked to **one validator** * NFT nominal value is staked in addition to any MOS coins you stake **Key insight:** You don't need a Delegator NFT to participate. Anyone with MOS coins can start staking immediately. *** ### **Delegator NFTs (Optional)** Delegator NFTs are optional assets that allow you to stake their nominal value to validators. **Key features:** * **Nominal value** - The NFT's nominal value is your stake (subject to slashing) * **One validator per NFT** - Each Delegator NFT can only be staked to one validator at a time * **Multiple NFTs for diversification** - To stake with multiple validators, you need multiple Delegator NFTs * **Transferable** - Can be sold or transferred to another account * **Binding required** - Must be bound when staked to a validator * **Expiration period** - Delegator NFTs have approximately **12-24 months of validity from binding** * **Time-limited staking** - Plan your staking strategy around the NFT's expiration date **Do you need a Delegator NFT?** * ❌ No - You can stake MOS coins without any NFT * ✅ Yes, if you want to stake the NFT's nominal value in addition to MOS coins **Important considerations:** * Monitor your NFT's expiration date closely * Unstake and rebind (or acquire a new NFT) before expiration * Expired NFTs cannot be used for staking * Plan your staking periods within the validity window *** ### **Rewards** Delegators earn a share of the validators' block rewards, minus the validator's commission. #### **How Rewards Are Calculated** **Your rewards depend on:** 1. **Your stake** - More stake = more rewards 2. **Total stake** - Your share is proportional to your stake vs. total 3. **Validator's commission** - Lower commission = more rewards for you 4. **Validator's activity** - Only active validators earn rewards (200 per session) **Formula:** ``` Your rewards = (Your stake / Total stake) × Session rewards × (1 - Commission rate) ``` #### **Reward Distribution** * Rewards are distributed at the end of each **session** (1 hour ≈ 600 blocks) * Only when your validator is **active** (selected by the subset algorithm) * If your validator is in **waiting or chilled status**, you earn nothing in that session #### **Reward Sources** Validators earn from multiple sources, and delegators share in these rewards: **Block Rewards** * Newly minted MOS coins (expansion formula) * 80% distributed to validators (20% to Treasury) * You earn a proportional share minus commission *** ### **Slashing Risk** Delegators share in both the rewards and the risks of their chosen validators. #### **What Gets Slashed** If your validator is slashed: * **Your staked MOS coins** - 0.1% per slashing event * **Your staked Delegator NFT nominal value** - 0.1% per slashing event **To learn more about Slashing and Auto-Chilling,** [**click here.**](https://docs.mosaicgalaxy.io/documentation/mosaic-chain/architecture-and-technology/slashing-and-chilling)