Delegation/Staking

Delegation/Staking

In the Bittensor network, not only does "$TAO makes $TAO," but each $TAO also matters.


Stake is equivalent to the amount of $TAO attached to the hotkey. For validators, more stake translates to rankings being worth more in Yuma Consensus.[1]


Delegation allows for the augmentation of a validator's stake by linking additional $TAO to it, enhancing its influence or voting power in the network. This procedure is trustless because the $TAO remains within the delegator's wallet at all times. Should the validator stop operating for any reason, the $TAO is automatically returned to the delegator's wallet.[2]


$TAO holders have the flexibility to delegate any quantity of their holdings to a subnet validator without any mandatory lock-in period. The process of staking or unstaking incurs a nominal fee of 150 RAO (equivalent to 0.000000150 $TAO), which is also the minimum balance that must be maintained in the wallet.


Given that a fixed quantity of $TAO is issued daily and distributed among delegators, the annual percentage rate (APR) fluctuates because as the total staked $TAO increases, each delegator receives a proportionally smaller share of the daily issuance.


You can find the current Annual Percentage Rate (APR) for $TAO delegation on bittensorstaking.com, a website built by FirstTensor.


While numerous third-party staking solutions are available, many of which are offered by reputable community members, it is crucial to conduct thorough due diligence before connecting your wallet to them. If you have any concerns or uncertainties, it is recommended to rely on the official staking guide as a trusted source of information.


Resources:

Official Bittensor Developer Documentation:

[1] https://docs.bittensor.com/glossary#stake

[2] https://docs.bittensor.com/delegation

Official staking guide:

[3] https://docs.bittensor.com/staking/staking-polkadot-js

Author: Bittensed Published: 01-02-2024 Edited: 21-06-2024 Views: 29216