An Introduction to SXP Rewards (Staking)¶
Solar is a sovereign blockchain with a native cryptoasset called SXP. It is based on the Delegated-Proof-of-Stake (DPoS) consensus mechanism and has 53 active Delegates (Validators) who secure the network. In this article, we will discuss how block rewards work within the Solar blockchain and how you can earn a portion of the rewards by becoming an active delegate or voting with your SXP coins.
SXP Staking is unique in that user funds are not required to be sent or locked.
When a user casts a vote, their vote-weight is assigned to the network Validator (Delegate) of their choice.
A user’s vote-weight adjusts automatically as funds are sent and received, and there is no need to re-vote or un-stake.
To change a vote, a user simply un-votes their current Validator and elects another by casting a new vote transaction.
The cost of a vote covers the transaction itself.
There is no requirement to send or lock additional funds in order to participate in consensus.
This transaction fee is awarded to the Validator who forges the transaction in a given block.
Solar is a sovereign blockchain that is validated by 53 active Delegates.
Each Delegate will submit (1) block per round.
A round consists of 53 blocks. Each block on Solar has a block time of 8 seconds.
Each block awards the active delegate who submits the block a dynamic and rank-based block reward with the 10% any transaction fees from that block.
Block Rewards are inflationary coins, meaning the total SXP supply is increased by between x and x SXP every block. This serves as a form of consistent inflation that reduces over time due to the non-fluctuating rate of rewards.
On Solar, 100% of the block reward goes to the Validator.
Note: There are no "halvenings" of block rewards on Solar.
Reward Sharing on Solar¶
As previously stated, block rewards and transaction fees are awarded to the active delegate responsible for reporting a given block. We call this combination of the block reward and 10% of any fees the total reward. On Solar, many of these delegates choose to take a small commission from the total reward and share the remaining after commission reward (ACR) with their voters.
Reward sharing can vary wildly with delegates taking commissions of anywhere from 0-100% of the total rewards.
If you still have questions or need more information, please feel free to ask the community.