Understanding Delegated Staking

Since delegated staking is a financial decision, the configurator will not automatically commit your node to become available for delegated staking.

• This action must be manually initiated by the Node Operator.

• To validate your permission to update delegated staking settings on the metagraph, you will be prompted to enter your p12 passphrase.

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.

High Level Flow

This is the logical flow of how delegation works on your node.

1

Create a Configuration

You will log into your node and go through the necessary steps to build a configuration file that lives locally on your node.

2

Update

You will instruct nodectl to:

• Pull your local configuration.

• Formulate a signed authorization request to delegate.

• Push (POST) signed request to the metagraph.

• Review the results of your delegation request.

3

Future Updates

• Update your local configuration to your new setting requirements.

• Repeat Step 2.

How Commission Works

✅ 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.

Earning Type	Daily Earned	Commission Set	Your Earnings	Delegator Earnings
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