Staking and Delegation
Staking and delegation are central to securing the Infinet network and participating in its decentralized governance. By staking INFI tokens, participants can either become validators or delegate their tokens to trusted validators. This process not only secures the network but also grants governance rights and earns rewards.
Staking Overview:
Staking is the process of locking up INFI tokens to secure the network and participate in governance. It’s a core part of the network’s Proof-of-Stake (PoS) layer, enabling both security and decentralization.
Becoming a Validator: Participants with a sufficient amount of staked INFI can become validators. Validators are responsible for validating transactions, securing the network, and participating in consensus.
Delegating INFI Tokens: Participants who don’t want to run a validator node can delegate their INFI tokens to existing validators. This allows them to earn a portion of the rewards without taking on the responsibilities of validation.
Governance Participation: Staked tokens grant voting power, allowing participants to vote on proposals, network upgrades, and other governance initiatives.
Staking Mechanics and Rewards:
The staking mechanism in Infinet is designed to incentivize long-term participation and network security. Participants are rewarded based on their stake, uptime, and the overall health of the network.
Rewards Distribution: Validators and delegators earn rewards in INFI tokens based on the amount staked and their contribution to the network’s security.
Dynamic Adjustments: The rewards are dynamically adjusted based on factors like network demand, the number of validators, and the total stake.
Slashing Mechanism: To ensure network integrity, validators who act maliciously or are consistently offline may be penalized through a slashing mechanism, reducing their staked tokens.
Delegation Process:
Delegation allows participants to earn rewards without needing to run a validator node. By delegating INFI tokens to a trusted validator, users can earn a share of the rewards while still participating in governance.
Selecting a Validator: Delegators can choose from a list of trusted validators based on performance metrics like uptime, reward history, and community reputation.
Delegator Rewards: A portion of the validator’s rewards is distributed to delegators based on the percentage of tokens they have delegated.
Governance Participation: Even as a delegator, participants retain governance rights proportional to their stake.
Governance Rights and Voting:
Staking INFI tokens grants governance rights, enabling participants to vote on key network decisions.
Proposals and Voting: Stakers can vote on proposals related to protocol upgrades, fee structures, and other governance initiatives.
Quorum Requirements: Proposals require a minimum participation rate (quorum) to be considered valid, ensuring that critical decisions are made with broad community involvement.
Decentralized Governance: The governance model ensures that no single entity can control the network, maintaining the decentralized nature of Infinet.
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