Delegators

Delegators play a crucial role in the network ecosystem by providing support to Agencies through the delegation of $AGENT tokens. Their contribution is vital for securing the network and ensuring its operational integrity. By delegating $AGENT to Agencies, Delegators help increase the stake of these Agencies in AI Agents on the network, which in turn enhances the network's overall strength and reliability.

Benefits for Delegators

In recognition of their support, Delegators receive a portion of the Usage Fees and node operation rewards generated by the Agency they choose to support. This passive earning mechanism allows Delegators to benefit financially from the network's growth and success. The percentage of rewards received by Delegators is determined by the Agencies, which often leads to competitive offerings to attract and retain Delegator support.

Competition Among Agencies

Agencies set their own reward rates for Delegators, typically ranging between 9-12% annually. This creates a competitive environment where Agencies vie for the support of Delegators by offering attractive reward rates. For instance, a Delegator delegating 15k $AGENT to an Agency with a 10% reward rate can expect to receive approximately 1500 $AGENT in rewards annually.

Delegation Tax and Unbonding Period

To maintain the network's economic balance, a delegation tax of 0.5% is applied whenever $AGENT is delegated. This tax is burned, effectively removing it from circulation, which can contribute to the token's deflationary mechanism. Additionally, Delegators are subject to a 28-epoch unbonding period should they choose to withdraw their delegated $AGENT. With each epoch consisting of 6,646 blocks, the unbonding period translates to roughly 26 days, during which the Delegator's tokens are locked and cannot be transferred or used.In conclusion, Delegators are indispensable to the network's health and expansion. Through their participation, they not only contribute to the network's security but also have the opportunity to earn rewards, making it a mutually beneficial relationship.