Understanding Delegated Staking
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Since delegated staking is a financial decision, the configurator will not automatically commit your node to become available for delegated staking.
Delegated staking is permanent and cannot be disabled once it has been enabled.
There are no downsides to enabling delegated staking it simply allows you to earn additional rewards without impacting your existing node operations.
This is the logical flow of how delegation works on your node.
✅ Key Point: Collateral Requirement
To operate a node, you are required to allocate 250,000 $DAG as collateral. You will earn 100% of the rewards generated by your own collateral—these rewards are exclusively yours and are not shared.
👥 Delegators and Additional $DAG
When other community members choose to delegate their $DAG to your node, the total amount delegated is added to your node's effective stake, increasing your node's influence and overall earning potential.
Example: Understanding Rewards from Delegation
Let’s say delegators collectively point X $DAG at your node.
Your node will now earn additional rewards based on this delegated stake.
You will receive a commission (a percentage you set between 5–10%) from the rewards generated by the delegated X $DAG.
The remaining rewards go back to the delegators, proportional to their contribution.
In Our Example
Let's say: 800 $DAG was earned in total from X $DAG delegated to your node for you and your delegators. This does not include rewards earned from your original 250,000 $DAG staked as collateral on your node.
You set a 10% commission charge.
Delegated Staking
800 $DAG
10%
80 $DAG
720 $DAG
Your Node's Collateral
600 $DAG
0%
600 $DAG
0 $DAG
Total
1,400 $DAG
680 $DAG
720 $DAG