Delegation
Delegation overview
Any user holding SGB tokens can delegate its vote power to price providers in the Flare FTSO system. To learn more about the FTSO system please visit https://flare.xyz/ftso-a-breakdown/.
Price providers submit price signals to the Flare Time Series Oracle system (FTSO). Inflation is distributed to anyone participating in the FTSO, which include price providers and any user delegating its vote power to the price providers. By participating, any SGB holder can earn a part of the distributed inflation. Each user can delegate its SGB vote power without any locking scheme. This means the user can earn rewards for its tokens, while still being able to use them for other purposes.
To delegate SGB vote power one has to wrap them and mint wrapped SGB (WSGB). Once that is done the user will have the vote power that is equivalent to its WSGB balance. Then the user can delegate this vote power to one or two price providers. As long as this delegation is active the user will earn rewards which are aligned with its vote power and the performance of the chosen price provider/s. Those rewards accumulate in the reward manager and will become claimable for each reward epoch that is finalized.
Last modified 8d ago
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