Delegation

DePIN projects can create Delegation Pools on Parasail by specifying reward policy for stakers, whether in their native tokens or points, payout policy for users in the event of service failure, and source of truth for monitoring and verifying their DePIN services.

Users can delegate their staked or restaked assets into various Delegation Pools based on their preferences and confidence in various projects. This flexibility allows users to direct their funds towards projects that resonate with their values and meet their expectations with their service quality, thereby contributing to the growth and development of these projects. Through delegation, users foster collaboration and synergy within the ecosystem, driving collective progress and innovation.

One of the primary benefits of delegation is the potential for revenue and reward sharing. DePIN projects integrate Parasail to enable service verification submission and establish reward and payout policies. This ensures that stakers who delegate their funds are rewarded for their contributions to the ecosystem, while also recognizing the risks undertaken by them. Rewards are distributed equitably among stakers based on their level of contribution, promoting fairness and inclusivity within the community.

The reward-sharing process is characterized by its dynamic and transparent nature. Rewards are distributed in accordance with the terms set by DePIN projects, ensuring clarity and consistency. Stakers have the ability to monitor their contributions and corresponding rewards in real-time, enhancing visibility and accountability within the ecosystem.

Moreover, stakers who delegate their funds to specific DePIN projects also consent to the payout terms established by these projects. In the event of a DePIN project failing to fulfil its service, stakers' funds may be subject to slashing. This mechanism incentivizes DePIN projects to uphold high standards of service quality and reliability, thereby safeguarding the interests of stakers and the broader ecosystem.

In essence, delegation is the cornerstone of the Parasail ecosystem, driving engagement, participation, and growth. Through these mechanisms, Parasail empowers users to actively shape the future of DePIN networks while providing tangible incentives for their contributions, ultimately fostering a vibrant and thriving ecosystem.

More details about user-generated delegation are coming.