Delegation
CRYPTO & FarmerDPoS (Delegated Proof of Stake) delegation is a mechanism for transferring your AXM to the validator's stake. This mechanism is designed for the following purposes:
- Strengthening the stability of Axiome Chain.
- Mining new AXM.
- Provide the community with an attractive source of income for years to come.
- Reduce the free float of AXM.
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Rewards
There are 2 types of delegation rewards:
1. Mining new AXM
The reward for mining new AXM reaches 20% per month and is set by a unique floating rate mechanism . This mechanism constantly monitors the ratio of all delegated AXM to all mined and, depending on the ratio values, sets the current reward rate. More details about this risk management mechanism are described below .
New AXM are mined with each new block in the Axiome Chain (~5 seconds), and 0.3% of your reward goes to the validator. Although the validator fee has little effect on your final reward, it helps them maintain and improve their node, making the blockchain more stable.
Example:
You delegated 10,000 AXM. The reward rate is 20% per month. So, after 30 days, you should receive 2,000 AXM as a reward, minus the validator fee of 0.3% (6 AXM). Total: 1,994 AXM.
If, due to the blockchain load, one of the blocks is released with a delay, you will not miss your reward, since the mining is not attached to the block, but to the second.
2. Share of network commissions
All transactions on the Axiome Chain require a fee to be paid to validators for execution. 30% of the fees collected are subject to burning , and the rest is distributed as follows: 95% to delegators depending on the proportion of delegated AXM relative to the total stake, and 5% goes to validators to maintain and improve their nodes.
Example:
The total fee from all transactions included in the block was 100 AXM. 30% (30 AXM) were immediately burned .
The block was signed by 7 validators, who equally divided the received commission (10 AXM each).
You delegated 200 AXM to one of these validators, and the entire stake of the validator was 1,000 AXM. Thus, your share in its stake is 20%. This means that your reward will be 20% of the fees collected by the validator, minus 5% validator fee.
Total: 10*0.2 - 5% = 1.9 AXM.
- Choose the most stable validators. If a validator misses signing a block, it will not bring you a delegation reward (either new AXM mined or a share of network fees) for that block.
- In the block explorer, pay attention to the Uptime indicator . The higher this indicator, the more stable the validator.
- Delegate to multiple validators to minimize the risk of missing a reward.
With the launch of NEXDEX in 2024, AXM delegators will have another way to earn money in the form of a weekly distribution of 50% of all trading fees collected by the exchange in USDT.
Risk management
To minimize the risks of hyperinflation, in addition to the 3 types of burning , a mechanism has been implemented that automatically sets the rate for mining new AXM based on the ratio of all delegated AXM to all mined.
This mechanism allowed the community to independently control the rate of production.
A healthy ratio of delegated AXM to mined is set at 95%. If the ratio is always 95% or higher, the rate will be the maximum, namely 20% per month.
Formula for calculating the ratio:
Делегировано / Добыто * 100%.
*Mined = all AXM not delegated (on Core wallets, on exchange wallets) + all AXM delegated + all AXM in the process of being delegated.
*Accumulated but not yet credited delegation rewards are not included in the calculation.
Reward rate depending on the relationship:
Attitude Rate
95% and above 20%/month.
90% - 95% 17%/month
85% - 90% 14%/month.
80% - 85% 10%/month.
75% - 80% 8%/month.
70% - 75% 5%/month.
65% - 70% 2%/month.
65% and below 1%/month.
The mechanism is completely independent and monitors the relationship of each released block in the Axiome Chain (~ 5 seconds). Thus, the reaction to changes is instantaneous.
The floating interest rate mechanism is based on the experience of central banks in periods when inflation exceeds acceptable levels. At such times, central banks raise the interest rate, which leads to a reduction in the dynamics of money supply growth in the market. And the more extreme the rate of inflation, the more aggressive the regulator's policy regarding rates.
Why does a community benefit from maintaining healthy relationships?
- It is profitable to delegate your own AXM.
- With high percentages it is easier to develop in an affiliate program .
- Increases the chances of AXM price stabilization by maintaining a healthy supply deficit of coins.
You can monitor the ratio of delegated AXM to mined, as well as the current reward rate, in the Axiome Wallet app.
How to delegate AXM?
Step 1: In the Axiome Wallet mobile app, go to the " Staking " tab and click on the " Delegate " button.
Step 2. In the window that appears, select a validator and enter the amount. The "Available" indicator displays the balance of your Main wallet .
Step 3. Click " Confirm ". Your AXM will be moved from the Main Wallet to the Delegation Wallet.
Each delegation comes with a 15% affiliate commission for upline mentors in the e affiliate program . It motivates the community to get more involved in the development of the project by paying generous affiliate rewards.
When delegating, remember to leave some AXM to pay network fees for future transactions. Otherwise, you won't even be able to claim your delegation rewards.
Where do delegation rewards go?
All delegation rewards are accumulated in your Delegation Wallet in the " Rewards " field. Click " Credit " to transfer them to the Main Wallet.
How to delegating AXM?
Step 1. Go to the " Staking " tab and click on the " Unstake " button.
Step 2. In the window that appears, select a validator and enter the amount.
Step 3. Click on the " Confirm " button.
After 30 days, your AXM will be moved back to the Main Wallet minus a 10% burn fee . The Delegation Wallet will show the amount of AXM in the process of delegating and the date of the last one.
You can have a maximum of 7 active delimitations within a single validator.
How to undo devolution?
If you cancel an active stakeout before it completes, your AXM will return to the validator's stake and no burn will occur.
Step 1: Find the " Initiate Delegation " transaction you want to cancel.
Step 2: Open the details of this transaction and click on the " Cancel " button.
Step 3: Find the cancelled "Devolution Initiation". Make sure there is a red cross to the left of the amount, confirming that this devolution has been cancelled.
When de-staking is cancelled, AXM is returned to the validator's stake without having to pay the 15% affiliate fee again.
Quick Actions
Click on the validator you have already delegated to and select the quick action.
