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ChainNodeDelegation

Delegation

Delegation allows users to contribute to the Beam Network’s security and decentralization without running a validator node. By delegating their BEAM tokens or Node Tokens, users support validators in processing transactions and maintaining the network.

How Delegation Works

Delegators can stake their BEAM and/or Node Tokens with validators operating Beam Nodes. While they don’t run a node themselves, delegators play an essential role in securing the network and enabling its decentralized functionality. Validators share rewards with their delegators in return for this support.

Key Details

  • No Minimum Delegation: Delegators can stake any amount of BEAM and/or Node Tokens, even as little as 1 token.
  • Withdrawal Period: Delegated BEAM or Node Tokens are subject to a 21-day waiting period before they can be undelegated.
  • Rewards: Delegators earn rewards proportional to their stake from both primary rewards (transaction fees) and secondary rewards (protocol fees and grants).
  • Commission Fees: Validators can set a commission fee on the rewards earned by their delegators, which varies by validator.

Delegation Rewards

Delegators receive rewards from two primary sources:

  • Primary Rewards: Transaction fees (gas fees) on the Beam Network, distributed in BEAM.
  • Secondary Rewards: These include protocol fees (e.g., from BeamSwap and Sphere marketplace) and grants from Beam Foundation Treasury, which may consist of additional tokens and contributions.

Reward distribution

  • 80% of secondary rewards flow to Node Token stakers (validators and delegators).
  • 20% of secondary rewards flow to BEAM stakers (validators and delegators).

Slashing Risks

While delegation is a simpler way to support the network, delegators are not exempt from risks. If a validator is penalized for poor uptime, malicious activity, or misbehavior, their delegators will also face slashing penalties, losing part of their rewards.

How to Get Started

  1. Choose a validator running a Beam Node that aligns with your goals.
  2. Delegate your BEAM and/or Node Tokens to the selected validator.
  3. Monitor validator performance to ensure consistent rewards and minimal slashing risks.

Detailed instructions for delegating your tokens will be available when the delegation portal becomes available.

RewardsValidate vs. Delegate