Foundation Delegation Initiative

Hey Operators,

We are launching an Foundation led delegation initiative to help support small existing operators and new operators in our community who are just starting out.

As a small or new operator, attracting delegators can be difficult because delegators are often attracted to established operators with high APY which new operators often don’t have. This means earning fewer rewards, resulting in a lower APY and the vicious cycle continues.

This initiative is where the Foundation will support small operators that meet certain requirements and criteria as follows:

Start Time

  • Era 23

Duration

  • 4 Eras (1 month)

Eligibility criteria

Operators must:

  • Run latest stable indexer-coordinator release, or the previous version if latest is less than 48 hours old.
  • Run latest stable indexer-proxy release, or the previous version if latest is less than 48 hours old.
  • SSL is enabled (Check via https://app.subquery.network/indexer/<YOUR_WALLET_ADDRESS>)
  • Social credibility is enabled and has a valid ENS name (Check via https://app.subquery.network/indexer/<YOUR_WALLET_ADDRESS>)
  • Reward collection is frequent (Check via https://app.subquery.network/indexer/<YOUR_WALLET_ADDRESS>)
  • Node Operator Commission Rate (NOCR) <= 40%
  • Less than < 1M SQT of delegated tokens

Reward Criteria

  • Operators offer valid Flex plans for 5 or more Foundation SubQuery projects (project is authored by 0x70d0AFeE4A6A314d71046DA9B4BbcFB8Fd1722Ce (subquerynetwork.eth)) => 500k
  • Offering valid Flex plans for RPCs for 3 or more different networks => 500k

Conditions

  • The Foundation will delegate up to 80% of the capacity of an Operator. Therefore, Operators must have the available capacity. No longer applicable
  • If delegation from the Foundation results in the total delegation surpassing 1M, the Foundation will only delegate the balance. (new)
  • Delegations are provided in its entirety for each reward criteria. It is the responsibility of the Operator to ensure they have available capacity.
  • When any criteria are not met, delegated tokens will be removed.

Examples

Example 1

An Operator indexes 7 projects and is eligible for 500k delegation from the Foundation. The Operator has 200k stake and 50k existing delegation.

  • Operator existing capacity = 2.3% (50k ÷ (200k x 12 - 200k) )
  • Operator new capacity = 25% (550k ÷ (200k x 12 - 200k) )

Therefore:

  • Total delegation: 500k
  • Total delegation from Foundation: 550k
  • Operator capacity: 25%

Example 2

An Operator indexes 7 projects and 5 RPC projects is eligible for 500k + 500k delegation from the Foundation. The Operator has 200k stake and 100k existing delegation.

  • Operator existing capacity = 4.5% (100k ÷ (200k x 12 - 200k) )
  • Operator receives 500k delegation for >=5 flex plan projects. Total delegation = 600k
  • Operator new capacity = 27% (600k ÷ (200k x 12 - 200k) )
  • Operator can only receive 400k out of the 500k for RPC projects as the total delegation will reach the 1M limit.
  • Operator new capacity = 45% (1M ÷ (200k x 12 - 200k) )

Therefore:

  • Total delegation: 1M
  • Total delegation from Foundation: 900k
  • Operator capacity: 45%

Example 3

An Operator indexes 7 projects and 5 RPC projects is eligible for 500k + 500k delegation from the Foundation. The Operator has 200k stake and 950k existing delegation.

  • Operator existing capacity = 43% (950k ÷ (200k x 12 - 200k) )
  • Operator is only eligible for a further 50k from the Foundation
  • Operator new capacity = 45% (1M ÷ (200k x 12 - 200k) )

Therefore:

  • Total delegation: 1M
  • Total delegation from Foundation: 50k
  • Operator capacity: 45%

Application

To apply, please fill in the following form: FDI Application

I find that if I use the current 500K SQT to run an unstake node to switch to the Delegator task, it will be much more profitable than running a node.

How to do: Divide 500K SQT into 100 wallets.
Use 100 wallets to participate in the mission, each wallet will use 5K SQT to authorize 10 nodes (500 SQT/1 node).

After 2 weeks of Undelegate, then reinvest that 500K SQT into another 100 wallets.

Multiply the coefficient.

If you finish the program, you are expected to receive more rewards than running node. and will benefit as follows:

  1. No server fees
  2. Higher rewards than running node
1 Like

So I understand the first part where you unstake 500k SQT and then divide it into 100 wallets.

I’m confused with the next steps. Use 100 wallets to participate in the mission. Do you mean this Foundation Delegation Initiative?

What does “authorize 10 nodes” mean? Do you mean delegate 5k to 10 nodes so each node receives 500 SQT?

Now running delegation is more reasonable than running nodes, and the rewards are also better
Your opinion is very good!!