Understanding Voi Staking Contracts: Delegation and Other Key Features

Hey Voi Community!

As we continue to build out our staking ecosystem on https://staking.voi.network/overview, it’s important that everyone understands how the contracts work and what options you have.

One of these options is delegation, but it’s only one piece of the puzzle. In this guide, we’ll walk you through how our staking contracts work and what to consider when deciding between delegating and self-managing your contracts.

How Do Voi Staking Contracts Work?

At the core of our staking system is the idea of locking up tokens for a set period to help secure the network and earn rewards. On the Voi staking platform, users have the opportunity to lock their tokens through staking contracts, which come with different configurations and lockup periods.

Once your staking contract is active and online, it starts participating in the network, producing blocks, and earning block rewards.

You have the option to configure your lockup duration for bonuses.

• Shorter lockups offer flexibility but much lower rewards.
• Longer lockups (up to 5 years) provide significantly higher rewards, up to 150% bonus on your allocation.
• https://staking.voi.network/airdrop

When the staking contracts are funded, you will receive the full airdrop amount plus the lockup bonus. This increase in your token stake will allow you to boost your block rewards as your staked amount directly influences your earning potential from block rewards.

What is Delegation?

Delegation is an option that allows you to have someone else handle the technical aspects of bringing your staking contract online. Delegating to another account is primarily intended for individuals or services that you pay a fee to handle node setup and transaction submission.

Since delegates won’t receive block rewards directly, they should charge a fee for the services they provide. NaaS providers can take advantage of the delegation feature, handling node management and transaction submission for users.

However, we strongly encourage participants to run their own nodes to maintain full control and ownership of their staking contracts. Delegation exists as an option to enable more advanced functionality down the line, but for most users, managing your own node is the best path forward to maximize your block production.

Steps to Bring Your Contract Online:

Regardless of how you manage your contract, these steps are necessary.

1. Partkeys, which are unique to the account, must be installed on a node (this could be any node).
2. The account for which the partkey was generated must submit a transaction to the network. This transaction contains the necessary details from the installed partkey and is what makes the account “go online.”
3. Once the transaction is submitted, a node must be running and active with the relevant partkeys installed for the account to be able to produce blocks.

Who Receives the Block Rewards?

A key point of confusion is around who gets the block rewards when using delegation. To clarify:

• Block rewards always go to the contract account, not the delegate. The account that produced the block (i.e., the contract account) receives all of the rewards.

So, while delegation can be a convenient tool to help manage the technical aspects, delegates do not receive any rewards. If your contract produces a block, the rewards go directly to you.

The Pros and Cons of Delegation

Now that you know what delegation is and how it works, let’s break down the benefits and trade-offs:

Pros:

• Convenience: Delegating to another account means they handle everything from node setup to participation key generation, saving you time and effort.
• Hands-Free Setup: If the delegate has the required partkey information, they can submit the “go online” transaction on your behalf, ensuring your contract stays active.

Cons:

• No Rewards for Delegates: The delegate does not earn block rewards. All rewards go to the contract owner (you). As a result, delegates should charge a fee for their services.
• Trust in the Delegate: You’re relying on the delegate to ensure that the node remains operational and active. If the node goes offline or isn’t managed correctly, your contract will not produce blocks, and you could lose out on rewards.
• Negative Impact of Overloading Nodes: Having more than 4 sets of partkeys active (i.e., 4 accounts using them on the same node) only negatively impacts the accounts involved in terms of block production. Be cautious when using or delegating to a node that is handling multiple accounts.

Want to Bring Your Staking Contract Online Yourself?

Voi Swarm is the official way to manage a node and support staking contracts. If you prefer to manage the process yourself and keep control over your staking contract, here’s what you need to do:

1. Import Your Owner Account into Voi Swarm: You only need to import the account that owns the contracts, not the contract accounts themselves. Voi Swarm will use the owner account address to look up all the staking contracts you own.
2. Run the Installation Script: By running the installation script again, the system will automatically detect your staking contracts, generate and install the partkeys for the contract accounts, and then submit the go online transaction from your account that owns the contracts.

A1CN is a 3rd party solution that can also be leveraged to achieve the same outcome. As a 3rd party product developed by a community member, Voi has no control over this product.

This method gives you full control over your contract’s participation in the network while ensuring that everything stays up and running. If you prefer more granular control, Voi Swarm also offers CLI options for advanced management.

Important Deadlines for All Users

There are two critical tasks you need to complete to fully maximize your block rewards:

1. Configure your lockup duration: This must be done before 25 September 2025, 00:00:00 GMT. Failing to configure your lockup period will default to a 0 lockup, meaning you miss out on the lockup bonus.
2. Get your staking contracts online and participating in consensus: This can be done after your contracts are funded on 28th October and before block rewards start on 30th October. Ensuring your contracts are online and active in consensus after the 30th October will maximize your block production and rewards.

Take Advantage of the Block Rewards Program

To make the most of the block rewards program, we encourage everyone to run a node. 10% of the entire total supply is allocated towards this program, providing significant earning potential.

The best way to get started is by following this link:
Getting Started with Voi Swarm

Frequently Asked Questions

1. Do people who delegate to a node get automatic payouts?

No, block rewards are only given to the contract account, not to the delegate. The rewards always go to the account that owns the contract.

2. Can the delegate submit the “go online” transaction?

Yes, as long as they have the necessary partkey information. This allows them to bring the contract online for you.

3. What happens if the contract doesn’t go online or the node goes offline?

If the partkeys aren’t installed or the go online transaction isn’t submitted, the contract won’t produce blocks. Similarly, if the node goes offline or is disconnected from the network, the contract will not be able to produce blocks, meaning no rewards will be generated.

4. If I delegate to an already online account, will that make my staking contract go online?

No, delegating to an already online account will not automatically make your staking contract go online. The staking contract must still submit the necessary go online transaction with the relevant partkey details to become active.

Should You Delegate or Manage Your Own Contract?

The decision comes down to how involved you want to be:

• If you’re confident in managing your own contract, you can handle everything yourself, ensuring maximum control.
• If you’d prefer to let a delegate handle the technical side, delegation might be a better option. Just make sure the partkeys are installed, the node remains active, and the transaction is submitted by the 3rd party.

Both approaches have their benefits, but we strongly encourage running your own node to maintain control and maximize your rewards.

Final Thoughts

Delegation is just one of several ways to engage with Voi staking contracts.

Whether you decide to manage everything yourself or delegate, make sure you fully understand how your contract operates and what steps are needed to keep it online.

Remember, by staking your tokens and using the lockup bonus, you can boost your block rewards significantly due to the higher number of tokens staked. Stay informed, stay staked, and don’t forget to complete the following:

1. Configure your lockup duration before 25 September 2025, 00:00:00 GMT.
2. Get your staking contracts online and participating in consensus after funding on 28 October and before block rewards start on 30 October for maximum rewards!

Finally, don’t miss out on the block rewards program, with 10% of the total supply allocated to it.

Get started by running your own node through this link:
https://voinetwork.github.io/voi-swarm/getting-started/introduction/

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