Delegation

Validators can accept delegated FLIP to increase their chances of winning Authority slots during the Auction.

In order to start benefitting from delegated stake, a Validator must be linked to an Operator.

Operators

An Operator account is an entity that manages a set of one or more Validators. The main reason for creating an Operator account is that it enables your managed Validators to benefit from delegated bids.

The Operator determines the delegation fee that is levied on delegated funds, and has the power to block or allow specific delegators.

Operator Settings and Interactions

Most of the following functionality is accessible via the Operator App .

Operators manage some settings related to delegation:

• fee_bps: integer This is the fee that will be taken from teh delegators’ share of rewards, measured in basis points (0.01%).
• delegation_acceptance: Allow | Deny This determines if delegation is allowed or denied by default. If set to Deny, then delegators must explicitly be allowed. If set to Allow, then delegators can can delegate freely unless they are blocked.

Operators need to set a Vanity Name when first registering. This serves as a user-friendly identifier for prospective delegators.

Furthermore, Operators have exclusive access to the following extrinsics:

• claim_validator: for claiming Validator accounts to be managed.
• block_delegator: When defaulting to Allow, adds the operator the blocklist. When defaulting to Deny, removes the operator from the allowlist.
• allow_delegator: When defaulting to Deny, adds the operator the allowlist. When defaulting to Allow, removes the operator from the blocklist.
• deregister_as_operator: Allows the operator to deregister and reclaim any remaining $FLIP in their account.

Setting Up

1. Create and Fund a new State Chain Account.
2. Register the account as an Operator:

• set your preferred commission, subject to a minimum rate (15% at the time of writing).
• set your default acceptance: either deny or accept.
• set your Vanity Name to make it easier for prospective delegators to identify you.

3. Claim your Validators. The claimed account must be a registered Validator.

Each Validator now must accept the Operator’s claim by submitting the accept_operator extrinsic. This can be done using the chainflip-cli on the Validator node:

chainflip-cli validator accept-operator <OPERATOR_ID>