A Minter Network Delegate is a user who wants to participate in network support, but is not ready to create his or her own validator node, and therefore trusts (delegates) his or her funds to a validator.
Selecting a Validator is the most important decision that every Minter network member makes when planning to delegate their coins.
What can be delegated
The Minter network allows you to delegate both the base coin of the BIP network and any cash-in coin, but the reward is always credited to the BIP.
When user coins are delegated, the size of the steak (stake) is recalculated by the network in BIP based on the coin parameters and the percentage of already delegated coins.
The economic sense of delegation is in receiving awards for block creation (BIP emission) and network commissions (for transfers, creation and conversion of coins, etc.). These awards are high, for example, in October 2019 they were more than 12% per month.
In the Minter network, awards are distributed to all delegates in proportion to their steaks. Validators receive awards when they create a block (once every 5 seconds or so) and then send out every minute to their delegates.
When calculating the expected income, it must be considered:
10% DAO fund collection;
10% tax in favor of Minter team;
the validator's commission.
Rewards to the delegate's account come after these fees have been paid.
Before making a decision to purchase coins for the purpose of delegation, it is necessary to carefully study not only the issuing project, but also the price of delegation (i.e. at what price the network recalculates the size of a steak from a caste coin to BIP).
The delegate's responsibility
For the Minter network, the delegate is one of the most important roles of network members, along with the validator and coiner.
It is by steaks of delegates that validators vote when new blocks are accepted.
Although it is impossible to lose the delegated BIPs (they are blocked on the delegate's account and nobody has access to them), it is the delegate who is financially responsible for the actions of the chosen validator - fines of the network for a double signature or block pass are imposed on all the steaks of unscrupulous node, that is, on all participants who delegated coins to this validator.
Return from delegation
To improve the stability of the network, the period of return of coins from delegation (unbond) is set at 518400 blocks (about 30 days).
Therefore, a balanced choice of validator is very important, because during the withdrawal of coins from delegation, they are not rewarded.