Delegation Lifecycle

Delegation is the process by which users assign their staking NFT to an active or queued validator on the VeChainThor network. In doing so, they contribute to the validator's total weight and, in return, receive a portion of the VTHO rewards generated by the validator's block production.

A delegation lifecycle consists of three main states: pending, active, and exited. The delegation process is directly tied to the selected validator, including its period length (7, 15, or 30 days) and auto-renewal settings. Delegation auto-renews by default unless explicitly exited by the user or if the validator exits validation.

Delegators cannot act independently of their validator's period. They follow the validator's timing and enter or exit delegation only at the start or end of a validator period.


Starting a Delegation

To delegate, a user must possess a matured staking NFT. This can occur in four ways:

  • Standard stake flow: The user stakes VET and waits for the maturity period to complete before selecting a validator.

  • Boosted flow: The user pays a Boost fee in VTHO to skip the maturity period and delegate immediately during staking.

  • Migrated flow: The user migrates an existing legacy node, which is exempt from the maturity period and can delegate right away.

  • Bootstrapping phase matured flow: The use already owns a mature StarGate NFT, previously acquired during the bootstrapping phase, and needs to select a validator and delegate to continue earning rewards.

Delegation is only possible if:

  • The NFT is matured or boosted.

  • The validator is either active or queued.

  • The validator is not exiting or already exited.

Delegating to queued validators is allowed, but the NFT will remain in a pending state until the validator becomes active.


Delegation States

Pending

A delegation enters the pending state when the user initiates delegation but the validator’s current period has not yet started or the validator is still in the queue. In this state:

  • No rewards are accumulated

  • User actions allowed:

    • Cancel delegation

    • Change to a different validator

    • Unstake (burn NFT and recover VET)

  • Switching validators is instantaneous

  • Boosted delegations also begin in this state and await validator activation or period start

Active

A delegation becomes active at the start of the validator's next period. During this state:

  • The NFT accumulates rewards on every validated block

  • Rewards are locked and claimable only at the end of the period

  • Delegation auto-renews by default, matching the validator’s period

  • The only way to exit is to request a delegation exit, which takes effect at the end of the current period or wait for your selected validator to exit validation

  • The delegation remains active even if the NFT is transferred or sold

Exited

Delegation exits the active state in one of the following ways:

  • The user requests an exit

  • The validator exits validation (either voluntarily or forcibly)

  • The pending delegation is cancelled

Once exited, the NFT:

  • Stops generating rewards

  • Can be unstaked or delegated again


Validator Selection and Timing

Users should carefully choose their validator, as delegation timings are bound to the validator’s activity. Specifically:

  • A delegator can only enter a delegation at the start of the validator’s next period.

  • A delegator can only exit at the end of the current period.

  • Auto-renew is enabled by default, meaning users stay in delegation unless they or the validator choose to exit.

If the validator enters an exit phase, the delegator will automatically follow and exit with them.


Reward Mechanics

  • Rewards begin accruing only after delegation becomes active.

  • They are distributed in VTHO and locked during each validator period.

  • Rewards from completed periodsare claimable.

  • When a user switches validator or unstakes, any pending claimable rewards are automatically claimed.

  • If an NFT is transferred, the active delegation remains in place, and the new owner gains access to all unclaimed and locked rewards.


Changing Validator

Users can switch their delegation to a different validator at any time:

  • From pending state: The change is immediate, and VET is simply redirected to the new validator

  • From active state: The user needs to exit delegation first then initiate a new one.


Exiting delegation

When a user wants to stop delegating, they request a delegation exit:

  • Pending delegation: The exit is immediate

  • Active delegation: The exit is scheduled and will complete at the end of the validator's current period

  • After exit: Users must make an additional transaction to unstake their VET and the NFT will be burned

It's important to note that once an exit is declared, it cannot be reversed.


Important Considerations

  • Timing matters: Delegations don't activate instantly. Users must wait for the validator's next period to begin (typically varies by validator)

  • Exit delay: Exiting an active delegation also requires waiting for the next period

  • Automatic reward claims: When switching validators or unstaking, any pending rewards are automatically claimed

  • Validator selection: Users should carefully choose their validator. If a validator stops mining or exits the network, reward accumulation stops

  • NFT transfers: If a user transfers their NFT to another address, the delegation remains active and all lcoked rewards transfers with it

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