Delegation

How delegation works in the KYVE protocol.

Benefits of delegating into a node

Not everyone will be able to run a KYVE node in order to participate in the KYVE network. Therefore delegation was introduced, enabling everyone to participate in the network and earn a APY. By delegating into a node, you support a node owner in claiming and holding on to his validator slot, in return you will receive the block rewards, minus the node commission the owner takes. To delegate into a node, any pool can be selected. Then under the tab "Nodes" all available nodes are listed, so the user can choose which one to delegate into.

Benefits of delegation as a node owner

To claim one of the limited validator slots, a node has to have a certain amount of delegated funds to show that it is trustworthy. Currently, there are 20 validator slots which can be occupied. Only the nodes with the highest delegation amount can claim such a slot and start participating in the network. For a node owner that means to behave correctly, to validate as many blocks as possible and to have a low commission in order to have a high APY and therefore attract many potential delegators.