Delegating Your Rowan Tokens on Sifchain
The “What, Why & How” of Delegating Rowan
Let’s get delegating! This article covers:
- what is delegating
- why you should delegate
- how to delegate in <1 minute
- to whom you should delegate
Contribute To Decentralized Security → Earn Rowan Tokens Every Day
Rowan is the native token of Sifchain, and its architects have formulated incentives for all stakeholder groups within the ecosystem to benefit. Among the most important roles in a blockchain is to provide crypto-economic security for the network.
In a Proof of Stake consensus network such as Sifchain, crypto-economic security is derived from Validators who dedicate some amount of their own computing resources and tokens (this is called “staking”). In return for providing this service to the network, Validators are compensated with block rewards and validator subsidy rewards. With this elegant solution in place, a Validator can earn passive income while providing a valuable service to the ecosystem.
If you too would like to earn passive income from your Rowan, but you don’t want to bother with the technical hardware requirements, then you can “delegate” your Rowan to a Validator who will stake on your behalf. In this way you can earn Validator rewards, minus a commission rate retained by the Validator.
Start Delegating Your Rowan In Less Than One Minute
Delegating your tokens for rewards has never been easier than with Sifchain. There are two simple requirements for getting started: (1) own some Rowan and (2) use Keplr wallet.
- Open your Keplr wallet and select “Stake”
- Choose a validator and select “Manage”
- Enter an amount to delegate and select “Delegate”
- Approve the transaction in Keplr
*Please note that when you choose to “undelegate” your Rowan tokens, there is a 21 day unbonding period. This means that users who try to remove liquidity from delegation will have to wait 21 days during which their capital will not earn yield. This is done to prevent a long range attack. Users can redelegate by switching from one validator to another without waiting for this 21 day unbonding period.
How To Choose A Validator
When it comes to choosing which validator to delegate your tokens to, there are a few important factors to consider and it is important that you do your own research. Here are a few points to consider:
- Contribution to ecosystem growth
Delegators are encouraged to select Validators based on their ability to support Sifchain’s technology innovations.
2. Reliability
When a Validator misbehaves or goes offline, there is a risk of “slashing” which may affect your rewards.
3. Fees / Commission
Validators set the commission that they take out for their costs before profits are given out. This rate can vary greatly.
4. Reputation
Get some background details by looking at a validator’s website or by contacting them directly. Transparency breeds trust and this allows you to more effectively determine if their staking principles align with your own.
5. Decentralization
Distributing voting power across a large number of validators is safer for everyone. No one should want network governance to be controlled by just a few entities, so consider delegating to a validator that is not already in the top 10 of voting power.
Resources for Choosing a Validator
In order to help you make an informed decision about which validator to delegate to, we have compiled a list of useful resources:
The most up-to-date validator data can be found here. Select any validator’s name from the “Random Validators” module to view their key metrics.
In March 2021, Sifchain surveyed node operators about their experience, security practices, and more. All information in this table is composed of direct responses from validators themselves. We have not verified any of this data.
3. Validators’ Own Websites and Social Media
Performing some of your own research is a smart move when making an informed decision regarding your assets.
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