🔄 How Delegation Works

⚙️ How Delegating Works

Step-by-Step Overview

1. You Stake Your QIE Coins When you delegate, you lock your QIE coins by assigning them to a validator of your choice.

2. Validator Includes Your Stake The validator adds your coins to their total stake, increasing their voting power and influence in the network.

3. You Earn Daily Rewards Validators earn rewards from multiple sources and share a portion of those rewards with their delegators every day.

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Where Do Validator Rewards Come From?

Validators collect rewards from three main sources:

• Block Rewards: Coins newly minted as rewards for producing blocks.

• Transaction Fees: Fees paid by users for processing their transactions on the network.

• Commission from Delegators: A small percentage fee charged by validators on the rewards they distribute.

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How Rewards Are Distributed

• Validators take their commission fee from the total rewards they earn.

• The remaining rewards are shared daily with all delegators, proportional to the amount they have staked.

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Summary Flow

You stake QIE coins
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Validator includes your stake in their total
       ↓
Validator earns rewards (block rewards + fees)
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Validator takes commission fee
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Remaining rewards distributed to you daily

Delegating is a simple way to participate in network security and earn rewards, without running a validator node yourself.