# Intro

In Phase 1 (used as a bootstrapping period) there were no validators and interactions with the protocol: the delegation was just a simulation and an incentive for users to start staking and get used to future dynamics. Rewards, in fact, were not coming from validating blocks by validators but from a pool of VTHO created by the VeChain Foundation.

This big difference is why **in Phase 2 some flows and functionalities had to change and to be adapted to the way the protocol works**.

In Phase 2, a **new smart contract was created (`Stargate`)** as the central entry point for most staking and delegation operations. This new contract streamlines the process and replaces certain outdated contracts. Notably, the **`NodeManagement` and `StargateDelegation` contracts have been deprecate**d.

To **gain a deeper understanding of the changes** in features and smart contracts, we invite you to explore two key sections:

* **Functionality Section**: This section outlines all breaking changes from the feature point of view, providing a comprehensive overview of how these changes might impact your interaction with the protocol.
* **Contracts Section**: Here, you'll find detailed information on breaking changes in smart contracts and their interfaces, including deprecations and the introduction of new contracts. This section is crucial for understanding the underlying technical adjustments made during Phase 2.

{% content-ref url="/pages/ybsKjnXAtlG0wh87fRgB" %}
[Functionality Changes](/phase-2-breaking-changes/functionality-changes.md)
{% endcontent-ref %}

{% content-ref url="/pages/gnIq387tAb4jaN3OEcGN" %}
[Contracts and API Changes](/phase-2-breaking-changes/contracts-and-api-changes.md)
{% endcontent-ref %}


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