The Cosmos-SDK is based on CometBFT that relies on a set of validators to secure the network. The role of validators is to run a full node and participate in consensus by broadcasting votes that contain cryptographic signatures signed by the validator's private key. Validators commit new blocks in the blockchain and receive revenue in exchange for their work. Validators must also participate in governance by voting on proposals. Validators are weighted according to their total stake.
What is staking?
In public Proof-Of-Stake (PoS) blockchain, the weight of validators is determined by the amount of staking tokens bonded as collateral. These tokens can be self-delegated directly by the validator or delegated to the validator by other holders. Any user in the system can declare their intention to become a validator by sending a create-validator transaction to become validator candidates. The weight (i.e. voting power) of a validator determines whether they are an active validator. The active validator set is limited to an amount that changes over time.
What is a Delegator?
As a delegator, you can stake your tokens with one or more Validators. In exchange for delegating you will earn a percentage of network transaction fees and also receive additional tokens from continuous inflation called block provision.
Why should I delegate?
If a token holder chooses not to delegate to a Validator, they will neither receive a percentage of network transaction fees nor block provisions, and their percentage to the total amount of tokens will decrease over time from inflation.
How choose a validator?
Perform careful due diligence on validators before delegating. If a validator misbehaves, part of its total stake, which includes the stake of its delegators, can be slashed. Delegators should therefore carefully select validators they think will behave correctly.
