Core DAO: Why validators and delegators’ rewards are not fixed

Between Validators and Delegators in the Core chain, nothing is verifiably fixed. The system can’t foresee your future move because you have the ability to frequently change things based on your choice at any time.

On the Core chain, rewards are variable. In other words, the rewards Validators receive are not the same every day because the source of reward, which is transaction fees, fluctuates based on the volume of transactions processed each day, and block production rewards fluctuate based on the number of times a validator had the opportunity to validate transactions.

The system cannot split rewards without knowing the number of delegators under a validator because validators do not always have the same number of delegators under them each day and because it is impossible for the system to predict how many delegators will register under a validator.

There is no set commission for validators. Because the amount of delegators under a validator determines how they are voted for block production, a validator may opt to adjust his commission in order to court more delegators at every round. As a result, neither the staking reward nor the Validator reward can be predicted by the algorithm for the upcoming round.

In order to maximize their daily earnings, a delegator may choose to switch validators frequently based on consistently rising or falling validator commissions. The system has no way of knowing what a delegator will do next or which validator he will choose to pitch under in the following round.

Delegators’ stakes are not set in stone, and you are aware that your rewards are determined by the quantity of your investment. Depending on the situation, a delegator may opt to change the size of his or her stake. The technology is unable to predict your next move, hence it is impossible to calculate your reward in advance.

Your reward production may be hampered by a jailed validator, and the system is unable to predict which validator will be imprisoned next in order to accurately compute your reward.

Renec staking is an example. Because changes can be made at any time and are unpredictable to the system, Renec employs DPoS like the CORE Chain and their APR portion has no reward % to this day.

In conclusion, the system cannot predict your choices before you make them and, as a result, cannot compute your rewards before you stake them because all chain actions fluctuate depending on Validators’ and Delegators’ interests (choice). Only at the conclusion of every 24-hour period of staking, when incentives are given out, can you learn your reward.

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