Token Delegation via DPos

Liquidity Providers (LPs) can delegate any amount of their LP stake to an Agent validator through a process called delegation. Delegation on Virtual Protocol works like this:

• An Agent staker, i.e., a delegator, also called a nominator, stakes with an Agent validator, making this Agent validator a delegate of the Agent. This provides support to the delegate as the delegate's effective stake becomes larger, which increases the delegate's impact on the Agent Validation.

A nominator is a delegating authority.

A nominator is the same as a delegating authority. Typically a nominator is an owner of Agent LP tokens, looking to stake in any Agent without doing any validating tasks.

• The delegate (the Agent validator) then pools all such delegated stake, along with their own stake, and uses this total stake to perform validation tasks in the Agent. Regular staking rewards, in proportion to the total stake of the delegate, are credited to the delegate as a result of such validation tasks.

• After deducting a percentage for the delegate, these staking rewards are given back to the delegate's nominators.

Delegate take %

The default value of the delegate take rate is 10%.