🧱Staking Delegation
Last updated
Last updated
If you are looking for a guide, you can find it here:
The consensus mechanism of BounceBit's Layer 1 is a Delegated-Proof-of-Stake (DPoS) protocol to operate the network. Selection of validators that create new blocks and validate transactions is based on the amount of tokens they stake. This stake can consist of assets delegated to them, as well as their own assets.
BounceBit chain introduces a Dual-Token PoS, a strategic innovation designed to enhance network security and engagement of network participants.
BounceBit’s PoS architecture incorporates 50 Validators, evenly divided into two segments: one for BTC stakers and the other for BB token stakers. This dual-token system not only broadens the stakeholder base but also weaves an additional layer of resilience and security into the network’s consensus fabric. Simultaneously this means that users can delegate their BB as well as BTC to node operators to actively participate in consensus.
You can stake BBTC and also BB tokens by delegating them to validators. You have to choose a specific validator that you want to stake with. This choice will potentially affect the staking rewards you stand to receive. There are two main factors to consider in this decision - commission and performance.
To try to balance operational requirements, BounceBit empowers validators to impose a commission on staking rewards. This pragmatic approach addresses the economic realities of node operation, ensuring validators are adequately compensated for their critical role in maintaining the network’s robustness and functionality.
Bad performing validators might incur punishments during an epoch, which results in them not earning any staking rewards for the epoch. This naturally affects the stakers that delegated assets to the punished validator.
To delegate your assets you can use BBScan, an explorer built by Blockvision, with in-built staking interface.
The exact requirements a validator has to satisfy to be active on BounceBit are not yet set, but will be set once Mainnet launch commences.