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Delegation Strategy

All Avalanche validators can be part of the delegation set - there are no whitelists, and any validator can participate as long as it qualifies for delegations under BENQI's delegation strategy. The delegation strategy aims to distribute staked AVAX to high performance validators with low commissions.
To qualify for delegations from BENQI Liquid Staking (BLS), Avalanche validators have to meet the validator minimum criteria.
Aligning with the ethos of decentralization and being open, delegations from BLS are eligible to all Avalanche validators with or without veQI.
With the release of veQI, delegations from BLS have been split into two pools – the Open Pool and the veQI Pool.
Open Pool delegations are for any validators (both veQI and non-veQI holders) that meet the validator minimum criteria.
veQI Pool delegations are only for veQI holders that meet the validator minimum criteria for the veQI Pool.

Validator Minimum Criteria

The current minimum criteria for validators are:
  1. 1.
    15 day remaining uptime
  2. 2.
    Open Pool: 6000 AVAX minimum stake veQI Pool: 5500 AVAX minimum stake
  3. 3.
    Open Pool: 2% delegation fee veQI Pool: 2% to 5% delegation fee
refer to veQI Delegations for more information on the delegation structure.

veQI Delegations

BENQI Liquid Staking consists of two pools for delegations — the Open Pool and the veQI Pool.

Open Pool (70%)

The Open Pool is allocated to any validators (both veQI and non-veQI holders). 70% of total delegations from BLS have been allocated to this pool.
Avalanche validators that meet the validator minimum criteria with a delegation fee of 2% qualify for delegations from this pool. All delegations from this pool are randomly allocated including delegations to veQI holders.

veQI Pool (30%)

The veQI Pool is allocated to only veQI holders. 30% of total delegations from BLS have been allocated to this pool.
Avalanche validators that meet the validator minimum criteria with a delegation fee of 2% to 5% qualify for delegations from this pool. veQI holders allocate staked AVAX delegations from BLS to their Avalanche validator of choice by voting for it.
Note: Amount of delegations to validators is based on the validator’s aggregate vote count of veQI.

Possible outcomes for Avalanche validator delegations based on delegation fee set

Minimum criteria with 2% delegation fee and no veQI vote power

Validators that have no veQI vote power but meet the validator minimum criteria with a 2% delegation fee set but with no veQI vote power qualify for delegations from the Open Pool.
These delegations are allocated randomly from BLS.
Summary: Validators with 2% delegation fee (without veQI vote power) will always be eligible for delegations from the Open Pool

Minimum criteria with 2% delegation fee + veQI vote power

Validators that have veQI vote power and meet the validator minimum criteria with a 2% delegation fee set qualify for delegations from both the Open Pool and veQI Pool.
veQI Pool delegations are allocated according to a validator's aggregate vote power.
Open Pool delegations are allocated randomly from BLS.
Summary: Validators with 2% delegation fee (with veQI vote power) are eligible for delegations from both the veQI Pool and Open Pool

Minimum criteria with >2% to 5% delegation fee + veQI vote power

Validators that have veQI vote power and meet the validator minimum criteria with a delegation fee set of more than 2% up to 5% qualify for delegations only from the veQI Pool.
veQI Pool delegations are allocated according to a validator's aggregate vote power.
Summary: Validators with delegation fee of more than 2% up to 5% are only eligible for delegations from the veQI Pool