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Offline GordonS

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Delegates and Dividends
« on: August 26, 2014, 10:43:26 AM »

My understanding is that BTSX holders can earn dividends by voting for delegates. The delegates gain BTSX from transaction fees and loan interest, and then some of that is passed on to voters, based on their pay rate.

How many delegates can I vote for?

If I vote for more than one delegate, will I receive dividends from all of them?

Is there any disadvantage to voting for multiple delegates?

Offline puppies

Re: Delegates and Dividends
« Reply #1 on: August 26, 2014, 10:50:27 AM »
My understanding is that BTSX holders can earn dividends by voting for delegates. The delegates gain BTSX from transaction fees and loan interest, and then some of that is passed on to voters, based on their pay rate.
The fees that are not kept by the delegate are destroyed, thus increasing the value of all other shares
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How many delegates can I vote for?
101
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If I vote for more than one delegate, will I receive dividends from all of them?
As described above.  All dividends will benefit all shareholders in proportion to shares owned.
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Is there any disadvantage to voting for multiple delegates?
The delegates you vote for could act as a sort of fingerprint for your transactions and reduce your anonymity.  For that reason the wallet will by default only vote for a random subset of the delegates you select with every transaction.  It is good to vote for lots of delegates as it helps to strengthen the network.
« Last Edit: August 26, 2014, 10:52:49 AM by puppies »
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Offline GordonS

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Re: Delegates and Dividends
« Reply #2 on: August 26, 2014, 11:45:55 AM »
Quote
The fees that are not kept by the delegate are destroyed, thus increasing the value of all other shares
Ah, I see, so not a dividend at all, but in theory less supply equals higher price. Maybe a stupid question, but theoretically couldn't all BTSX in existence eventually end up being destroyed?

Quote
Quote
How many delegates can I vote for?
101

I see in the client that there can be up to 101 active delegates at any time - why 101?

I see I can also 'down vote' delegates in the client too. How does that work, and how does it affect approval ratings?
« Last Edit: August 26, 2014, 11:58:33 AM by GordonS »

Offline xeroc

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Re: Delegates and Dividends
« Reply #3 on: August 26, 2014, 02:26:25 PM »
Quote
The fees that are not kept by the delegate are destroyed, thus increasing the value of all other shares
Ah, I see, so not a dividend at all, but in theory less supply equals higher price. Maybe a stupid question, but theoretically couldn't all BTSX in existence eventually end up being destroyed?
Fees are 0.5btsx per transaaction ... if all delegates had a payrate of 0% then this fee would be destroy .. al .5btsx .. for each transaction ..
however, I do not thing anyone would pay for a VISA-grade server as delegate and destroy ALL fees ..

in the very very very long run you are right.

Quote
Quote
How many delegates can I vote for?
101

I see in the client that there can be up to 101 active delegates at any time - why 101?

I see I can also 'down vote' delegates in the client too. How does that work, and how does it affect approval ratings?
[/quote]

101 is a trade-off found thgouht reasoning .. its probably not the optimal solution ... lots of discussions about the number can be found on the forum.

the 'down vote' is no real down vote .. it indicated that you "blacklist" that account name for transaction ..
github issue already created about this "downvote" that is no down vote
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