Considerations

Validator vs Delegator

Considerations before becoming a validator

As much as we wish that staking was accessible and risk-free to everyone, this is not a reality. There are some practical and serious considerations before deciding to stake your KUB.

✔️ Technical Knowledge

Node setup requires reasonable technical knowledge when working with computers, although new tools make this easier over time. Understanding the command-line interface is helpful but no longer strictly required.

It also requires a basic hardware setup and an understanding of minimum recommended specs.

✔️ Secure key management

Like private keys secure your wallet address, you will need to generate keys specifically for your validator. You must understand how to keep any seed phrases or private keys safe and secure.

✔️ Maintenance

Hardware occasionally fails, network connections errors out, and client software occasionally needs upgrading. Node maintenance is inevitable and will occasionally require your attention. You'll want to be sure you stay aware of any anticipated network upgrades or other critical client upgrades.

✔️ Reliable uptime

Your rewards are proportional to the time your validator is online and properly attested. Downtime incurs penalties proportional to how many other validators are offline simultaneously but does not result in slashing. Bandwidth also matters as rewards are decreased for attestations that are not received in time.

Considerations before becoming a delegator

Before becoming a delegator in a blockchain network, several important considerations must be considered to ensure a rewarding and secure staking experience. Here are some key considerations:

✔️ Staking Power

One of the primary considerations before becoming a delegator is assessing the node's power and performance. A staking's power is determined by the total amount of tokens staked on a node validator. Look for nodes with a significant stake, as they are more likely to be selected as validators, leading to more consistent rewards for delegators.

✔️ Fees and Rewards

Review the fee structure of the staking pool, including commission fees (staking fees) and any additional charges. Seek a balance between competitive fees and attractive rewards to maximize your earnings.

✔️ Delegator Amount and Delegate Size

Assess the number of tokens you plan to delegate. While larger delegates may yield higher rewards, consider your risk tolerance and the amount of tokens you can comfortably lock up for the staking duration.

Summary

In summary, validation involves actively participating in securing the network by running a node, while delegation allows KUB holders to participate passively by trusting their stake to a chosen validator. Both validators and delegators can earn rewards, but validators have higher stakes and more direct involvement in the Bitkub Chain network.