Delegated Staking

A node can be staked by the Node’s owner, or by other holders of the Sylo Token - the latter is known as delegated staking.

Delegated stakers provide nodes with additional backing, and earn a share of the proceeds in return. Delegated stakers are able to get involved in the network with much lower setup costs and complexity than running their own Node.

Once Phase 3 is complete, delegated stake will also be at risk of redistribution for poor Node performance (in the same way that regular stake is) in proportion to total stake against the Node.

This means that delegated stakers are taking a risk when they stake their SYLO against a Node - they are betting that the Node they are staking to is reliable and honest. This is balanced by not having to do the work (and pay the bills) associated with running a node.