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Delegator FAQ

Frequently asked questions about delegating LYTH on the Monolythium network.

Slashing and Risk​

If my validator gets slashed, do I lose funds?

Yes. Delegators are slashed proportionally alongside the validator. The amount depends on the type of infraction:

InfractionSlash AmountAdditional Consequence
Downtime (missed blocks)0.01% of validator's total stakeValidator jailed for 10 minutes minimum
Double-signing5% of validator's total stakeValidator permanently tombstoned

For example, if you have 10,000 LYTH delegated and the validator is slashed 5% for double-signing, you lose 500 LYTH. This is why choosing reliable validators and diversifying your delegation matters.

Can my delegated funds be stolen?

No. Delegation is fully non-custodial. The validator never gains access to your tokens or keys. They can only use your stake weight for consensus participation. The only way delegated tokens are reduced is through protocol-level slashing for validator misbehavior.

Should I diversify across validators?

Recommended. Spreading your delegation across multiple validators reduces your exposure to any single validator's downtime or slashing event. If one validator is jailed or slashed, only the portion delegated to that validator is affected.

Unbonding​

How long is the unbonding period?

3 days (259,200 seconds). During this time:

  • Tokens are locked and cannot be transferred or used
  • No rewards are earned on unbonding tokens
  • Tokens can still be slashed if evidence of past validator misbehavior is submitted during the unbonding window

After the 3-day period completes, tokens are automatically released to your available balance. No additional action is required.

Can I cancel an unbonding?

No. Once unbonding begins, it cannot be cancelled or reversed. You must wait the full 3 days for the tokens to become available, then re-delegate if desired.

Redelegation​

Can I redelegate without unbonding?

Yes. You can redelegate from one validator to another instantly using a single transaction. The tokens move immediately to the new validator and begin earning rewards right away.

However, there is a cooldown: you cannot redelegate those same tokens again for 3 days. This prevents "redelegation hopping."

# Redelegate from Validator A to Validator B
monod tx staking redelegate <valoper-A> <valoper-B> <amount>alyth \
  --from <your-key> \
  --chain-id mono_6940-1

# Monarch equivalent
monarch stake redelegate <valoper-A> <valoper-B> <amount>alyth --from <your-key>

See Redelegation for full details.

Validator Issues​

What happens if my validator goes offline?

The validator is jailed after missing too many blocks within the signed-blocks window. While jailed:

  • You stop earning rewards on tokens delegated to that validator
  • The validator (and delegators) are slashed 0.01% for downtime

You can redelegate to an active validator immediately — there is no need to wait for the unbonding period. If the validator fixes the issue and unjails, you can remain delegated and resume earning rewards.

Can I delegate to an inactive validator?

Yes, the transaction will succeed. However, only validators in the active set (top 53 by total stake) earn block rewards. If your chosen validator is outside the active set, you earn no rewards until they re-enter it.

Rewards​

How often do rewards accumulate?

Every block, approximately every 5 seconds. Rewards accumulate automatically in the distribution module and are always available to claim. However, they must be withdrawn manually — there is no auto-compound mechanism.

# Check your accumulated rewards
monod query distribution rewards <your-address>

Do I need to claim rewards before undelegating?

It is recommended. Unclaimed rewards are not lost when you undelegate, but claiming first ensures you have full control over those tokens immediately. Any unclaimed rewards from a validator you have fully undelegated from remain claimable indefinitely.

Minimums and Costs​

Is there a minimum delegation?

There is no protocol-enforced minimum for delegators. However, gas fees for the delegation transaction make very small delegations (less than a few LYTH) uneconomical. Validators must self-delegate at least 100,000 LYTH.

How much does it cost to delegate?

Only the standard gas fee for the transaction. There is no special delegation fee. The same applies to undelegation, redelegation, and reward claims.

Governance​

Do my staked tokens give me voting power?

Yes. Your delegated LYTH counts toward governance voting power. If you do not vote on a proposal, your validator's vote is applied on your behalf. You can override this by casting your own vote before the voting period ends.

What are the tax implications of staking rewards?

warning

This is not tax advice. Staking rewards may constitute taxable income in your jurisdiction. The tax treatment of staking, claiming, and compounding varies by country. Keep records of all claim transactions, amounts, and token prices at the time of each claim. Consult a qualified tax professional for guidance specific to your situation.

Quick Reference​

QuestionShort Answer
Can my validator steal my tokens?No — delegation is non-custodial
Unbonding period3 days
Rewards during unbondingNone
Slashing risk during unbondingYes — past infractions can still be punished
Minimum delegationNo minimum (gas costs are the practical floor)
Reward frequencyEvery block (~5 seconds)
Auto-compoundNot available — claim and re-delegate manually
Redelegate without unbondingYes — one hop, then 3-day cooldown on those tokens
Diversify delegationRecommended