Delegation
Last updated
Last updated
DPoS (Delegated Proof of Stake) delegation is a mechanism for staking your AXM with a validator. This mechanism is designed with four objectives:
Strengthening blockchain stability.
Mining new AXM.
Provide the community with an attractive source of income for years to come.
Reducing the free circulation of AXM.
There are 2 types of delegation rewards:
The reward size for mining new AXM can reach up to 20% per month and is determined by a unique mechanism known as the floating rate. This mechanism continuously monitors the ratio of all delegated AXM to all mined and adjusts the reward rate accordingly. More details about this risk management mechanism are described .
Mining of new AXM occurs with the production of each new block in the Axiome Chain (~5 seconds), and 0.3% of your reward is directed to the validator. Although the validator fee has a minor impact on the final size of your reward, it helps the validator maintain and improve its node, thereby enhancing the stability of the blockchain.
Choose the most stable validators. If a validator misses participating in block signing, they won't earn you any delegation rewards (neither from mining new AXM nor from the share of network fees).
Delegate to multiple validators to minimize the risk of missing out on rewards.
This mechanism allowed the community to independently control the dynamics of mining new AXM.
The healthy ratio of delegated AXM to mined AXM is set at 95%. If the ratio consistently remains at 95% or higher, the reward rate will be at its maximum, which is 20% per month.
Delegated / Mined * 100%.
*Mined = all AXM not delegated (on Primary Wallets, exchange wallets) + all AXM delegated + all AXM in the process of undelegation.
*Accumulated but not yet claimed delegation rewards are not included in the calculation.
>95%
20%/mo.
90% - 95%
17%/mo.
85% - 90%
14%/mo.
80% - 85%
10%/mo.
75% - 80%
8%/mo.
70% - 75%
5%/mo.
65% - 70%
2%/mo.
<65%
1%/mo.
The mechanism is fully autonomous and monitors the ratio every block (~5 sec.), ensuring an instantaneous response to changes.
It's beneficial to delegate own AXM.
Increases the chances of stabilizing the price of AXM due to maintaining a healthy coin supply deficit.
You can monitor the ratio of delegated AXM to mined ones, as well as the current reward rate, directly in the Axiome Wallet app.
Step 1. In the Axiome Wallet app, go to the "Staking" tab and click on the "Delegate" button.
Step 3. Click "Confirm". Your AXM will be moved from your Primary Wallet to your Delegated Wallet.
When delegating, remember to leave some AXM for network fees for future transactions. Otherwise, you won't be able to claim even your delegation rewards.
All delegation rewards accumulate in your Delegation Wallet under the "Rewards" section. Click "Claim" to transfer them to your Primary Wallet.
Step 1. Go to the "Staking" tab and click on the "Undelegate" button.
Step 2. In the pop-up window, select the validator and enter the amount.
Step 3. Click "Confirm."
You can have a maximum of 7 active undelegations within one validator.
If you cancel an active undelegation before it completes, your AXM will return to the validator's stake, and no burning will occur.
Step 1. Find the "Initiating undelegation" transaction you want to cancel.
Step 2. Open the details of this transaction and click on the "Cancel" button.
Step 3. Find the canceled "Initiating undelegation". Make sure there is a red cross icon next to the amount, confirming that this undelegation has been canceled.
Click on the validator you've already delegated to and select a quick action.
The terms of the delegation mechanism can be adjusted through voting among validators to respond promptly to possible market changes. Any innovations will be accompanied by prior community notification.
All transactions in Axiome Chain require payment of a fee to validators for execution. 30% of the collected fees are subject to , while the remaining amount is distributed as follows: 95% to delegators based on their share of delegated AXM relative to the total stake, and 5% to validators for maintaining and improving their nodes.
The total fee from all transactions included in a block was 100 AXM. 30% (30 AXM) of this fee is immediately subject to .
In the , pay attention to the Uptime indicator. The higher this indicator, the more stable the validator.
To minimize the risks of hyperinflation, in addition to the , a mechanism was implemented that automatically adjusts the current delegation reward rate depending on the ratio of all delegated AXM to all mined ones.
With high percentages, it's easier to grow in the .
Step 2. In the pop-up window, select a validator and enter the amount. The "Available" indicator displays the balance of your .
A partnership fee of 15% is charged for each delegation to the higher-level users in the . It motivates the community to become more involved in the project's development by paying generous partnership rewards.
After 30 days, your AXM will be moved back to the Primary Wallet minus a 10% . In the Delegation Wallet, the amount of AXM in the undelegating process and the date of the last transaction will be indicated.