IoTeX Delegate Program Overview
What is the role of a Voter?
IoTeX is a digital democracy where token holders vote for Delegates to maintain and grow the network.
The top 36 voted delegates are Consensus Delegates that manage consensus on behalf of the entire IoTeX network and so are responsible for:
- Maintaining servers and network
- Creating and validating blocks
- Processing smart contracts and transactions
How to become a Voter?
Any token holder who stakes IOTX and votes for an IoTeX delegate is a "Voter". A delegate is someone who stakes over 1.2 million IOTX and receives over 2 million total votes.
Voters have 3 requirements:
- Delegates website
- Voters will use the IoTeX delegates website to view all delegate candidates and vote
- There is a smart contract integrated into the website which voters must use to access the MetaMask web tool
- Install MetaMask - it is the bridge between your wallet and the IoTeX voting smart contract
- To stake/vote, you will need IoTeX ERC-20 tokens (IOTX) which you can purchase on exchanges
There are two concepts that voters need to be aware of:
- Staking IOTX to generate voting power
Auto-staking to maintain bonus votes
- Token holders stake IOTX tokens to get votes. 1 IOTX = 1 Vote
- Setting a stake duration generates bonus votes based on the formula Bonues votes = log1.2*(Stake duration)
- Bonus votes will reduce over time if not auto-staked. They diminish every day and trend towards 0 at the end of the stake duration. To maintain bonus votes (i.e. no dimishing bonuses), you can auto-stake for a specific duration.
To vote for a delegate, you must use a voting smart contract. One wallet can create multiple "buckets" which means you can vote for multiple delegates. One bucket per delegate.
You can redirect your votes to a new delegate and extend your stake duration at any time.
If you don't set a stake duration, you can unstake at any time, but you won't receive any bonus voting power.
Delegates are rank-ordered in real time based on their total votes
A Delegate’s total votes includes votes for oneself (self-stake) and votes from other token holders.
The top 36 voted Delegates are the Consensus Delegates for the current epoch, and of these 36, 24 are randomly
Rewards for Delegates
Delegates are rewarded in IOTX tokens every epoch
Rewards are distributed from the rewards pool, consisting of:
- Reserved mining tokens (1.2 million IOTX)
- Transaction fees (all gas fees from IoTeX network transactions)
- Other contributions (donations from IoTeX foundation or other parties)
Rewards for Voters
Rewards for voters will vary based upon which delegate the voter has voted for.
Generally, delegates will split their delegate rewards into roughly 3 sections:
- Hardware/infrastructure costs
- Community/development funds
- Rewards for voters
For iotxplorer in particular, we have pledged to give 87% of all our reward bonuses to our voters. The majority of the remaining funds will be spent on dApp development and adding value to the network, and some will be used to cover hardware costs.