Delegator's FAQ

Staking on ZIGChain empowers ZIG holders to contribute to network security and earn rewards by delegating their tokens to validators. This FAQ aims to answer common questions about the staking process.

What is a Delegator in ZIGChain?

A delegator is a holder of the ZIG token who supports the security and stability of ZIGChain without directly running a validator node. Instead, delegators delegate (or "stake") their tokens to validators, entrusting them with transaction validation and blockchain security.

Delegator Benefits

• Rewards: Earn a portion of the rewards generated by the chosen validator.
• Governance Participation: Influence blockchain decisions through governance voting.

How do I become a Delegator on ZIGChain?

To become a delegator, follow these steps:

1. Choose a Validator: Review the list of validators on ZIGChain and assess their performance metrics, commission rates, and reliability.

2. Delegate Your Tokens: Use the ZIGChain Command Line Interface (CLI) or a supported wallet (e.g., Leap or Keplr) to delegate your ZIG tokens to your selected Validator.

3. Earn Rewards: Once your tokens are staked, you'll start earning rewards automatically, proportional to the amount staked.

You can delegate to multiple validators. Diversifying your risk is often recommended.

How are delegator staking Rewards calculated?

ZIGChain staking rewards come from two sources:

• Block Rewards: Derived from the network's dynamic inflation rate introduced during the ZIG Tokenomics review, block rewards incentivize users to stake their ZIG tokens. The inflation rate adjusts based on the total percentage of tokens staked, ensuring an optimal balance between token supply and network security.
• Fee Rewards: Transaction fees collected from the network are distributed to delegators proportionally based on their stake amount.

The rewards a delegator receives depend on validator performance, commission rates, and the amount of ZIG tokens they have staked.

Example Calculation of a Single Reward Distribution:
Consider a scenario where a validator earns 1,000 ZIG in rewards (either block rewards or fees). Here's how delegators receive their Share:

Assumptions:

• Validator's Self-Bonded Stake: 50,000 ZIG
• Your Delegated Stake: 10,000 ZIG
• Validator's Total Stake: 100,000 ZIG (delegator’s stake + self-bonded)
• Validator's Commission Rate: 5%

1️⃣ Calculate the Validator's Share of the Reward The Validator receives the full Reward of 1,000 ZIG but first takes a commission from the delegator's Share:

Validator Commission = Reward × Commission Rate x (Total Delegated Stake / Validator's Total Stake)
Validator Commission = 1,000 ZIG × 0.05 x (100,000 ZIG - 50,000 ZIG) / 100,000 ZIG
Validator Commission = 1,000 ZIG × 0.05 x 0.5 = 25 ZIG
Rewards After Commission = 1,000 ZIG - 25 ZIG = 975 ZIG

2️⃣ Calculate Your Share as a Delegator
Your Share of the remaining Reward is proportional to your stake relative to the Validator's total stake:

Your Share = (Your Stake / Validator's Total Stake) × Rewards After Commission
Your Share = (10,000 ZIG / 100,000 ZIG) × 975 ZIG = 0.1 × 975 ZIG = 97.5 ZIG
You would receive 97.5 ZIG from this single reward distribution.

How can I choose the Best Validator to delegate to?

When selecting a validator, consider the following factors:

• Uptime: Validators with higher uptime are more reliable and less likely to face downtime penalties.
• Commission Rate: The percentage of rewards the Validator takes before distributing the remainder to delegators.
• Performance: Historical performance, slashing history, and community reputation.
• Self-Bonded Stake: Validators with more self-staked tokens are incentivized to act responsibly.
• Information Provided: Validators can provide extra information about them through their description, and website.
• Blockchain Interest: As delegators, you will inherit the Validator's vote on governance proposals, so it is essential to align your interests.

Selecting a validator impacts your staking rewards and network health, so choose wisely.

Can I change my delegated validator?

You can redelegate your tokens from one validator to another without an unbonding period. However, redelegation is limited by unbonding period

Redelegation is a flexible option that allows you to optimize your staking strategy by switching to validators with better performance, such as higher uptime, lower commission rates, or a stronger reputation.

It can also help you mitigate risks by moving tokens away from validators with frequent slashing penalties or inconsistent reliability. If governance participation is a priority, you can redelegate to a validator whose voting decisions align more closely with your interests.

How do I unstake my Tokens?

To unstake (or undelegate) your tokens, follow these steps:

1. Use the ZIGChain CLI or your wallet to initiate the undelegation process.
2. There is an unbonding period during which your tokens will be locked and not earn rewards. This period is designed to enhance network security.
3. After the unbonding period, your tokens will be available for withdrawal.

What is Slashing, and how does it affect delegators?

Slashing is a penalty mechanism that enforces validator reliability and network security. When a validator is slashed, both the validator and its delegators lose a portion of their staked tokens. In Cosmos SDK–based networks such as ZIGChain, there are two primary slashing conditions:

• Downtime (missed blocks): If a validator fails to sign enough blocks within a window, a small slash is applied — typically 0.01% of stake — and it occurs at the time of the infraction. This is by far the most common slash.
• Double-signing (equivocation): If a validator signs the same block height twice, a severe slash is applied — typically 5% of stake — and the validator is tombstoned (permanently jailed and cannot unjail). This is rare but the most serious infraction and can be enforced retroactively once evidence is submitted during the unbonding window.

Because delegators share the validator’s risk, monitoring validator uptime, past slashes, and operational practices is essential to protect your stake.

What happens during the Unbonding Period?

When you begin the unbonding period, your tokens stop earning staking rewards, but they are not immediately safe from slashing. If the validator you delegated to committed an infraction before or during your unbonding period, your tokens can still be penalized.

The unbonding period exists to give the network time to detect and punish recent infractions, preventing validators from exiting quickly to avoid penalties.

Slashing During Unbonding

Whether your tokens are slashed depends on the sequence of events:

• If you are bonded (actively staking) when the infraction occurs: You are slashed.
• If you start unbonding before the infraction occurs: You are not slashed.
• If you start unbonding after the infraction occurs: You are still slashed.

Because double‑signing can be penalized later (once evidence is posted), the chain approximates the stake to slash as follows:

• Unbondings where the infraction happened before the unbonding began are slashed (by the slash factor).
• Redelegations from the slashed validator where the infraction happened before the redelegation began are slashed (by the slash factor).
• Any remaining amount to reach the full slash is taken from the validator’s currently bonded stake.

Examples

Example 1: Safe Unbonding

• Day 1: You initiate unbonding of 1,000 ZIG from Validator A.
• Day 5: Validator A double‑signs (5% slashing penalty).
• Day 21: Your 1,000 ZIG are released.
• Result: Not slashed — you started unbonding before the infraction.

Example 2: Slashing After Infraction

• Day 1: You are bonded with 1,000 ZIG to Validator B.
• Day 10: Validator B double‑signs (5% slashing penalty).
• Day 15: You begin unbonding.
• Day 36: Your unbonding completes; 950 ZIG are released.
• Result: Slashed — you were bonded when the infraction occurred.

Example 3: Downtime Slashing While Bonded

• Day 1: You are bonded with 2,000 ZIG to Validator C.
• Day 20: Validator C is offline for too long → downtime slash (0.01%).
• Day 25: You remain bonded.
• Result: You lose 0.2 ZIG; downtime slashing is immediate and affects bonded stake.

What APIs/CLI commands can I use to monitor my Delegations and Rewards?

ZIGChain provides several APIs/CLI Commands to help delegators monitor their staking activities:

List of active validators:

/staking/v1beta1/validators
zigchaind query staking validators

Check your current delegations:

/staking/v1beta1/delegations/{address}
zigchaind query staking delegations {address}

View your accumulated rewards:

/distribution/v1beta1/delegators/{address}/rewards
zigchaind query distribution commission {address}

There are additional APIs and CLI commands available to help you manage your staking activities effectively.