Delegation rewards

By participating in the network through delegation, you support validator operations and contribute to metagraph projects. In return, the protocol provides DAG-based incentives to encourage active participation.

How rewards are distributed

• Incentives are automatically added to your delegated balance, increasing your stake over time.

• These incentives accumulate in your delegation position and are not directly claimable.

• To access your delegated tokens and the associated incentives, you must undelegate and wait for the 21-day unbonding period to complete.

On integrationnet, for testing purposes, the unbonding period is 1 day only

Incentive sources

Delegators receive incentives through the following components:

1. Fixed incentive rate (3% annualized)

   • All delegated DAG receives a consistent 3% annual incentive, providing a stable baseline for participation.

2. Variable emissions (45% of protocol-level emissions)

   • 45% of all newly minted tokens are allocated to delegators.

   • This share adjusts based on the overall network delegation rate, offering greater incentives when less than 60% of the total DAG supply is delegated

3. Validator commission

   • Validators apply a commission fee to the total incentives earned by their delegators.

   • This commission supports validator operations and is deducted before rewards are distributed to delegators.

   • The commission rate varies by validator and is displayed when choosing where to delegate.