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The Cosmos Hub relies on Tendermint validators to commit new blocks to the blockchain. Validators participate in the consensus protocol by broadcasting votes signed with their private keys.
Validator candidates can "delegate" or stake ATOM to them from token holders. The Cosmos Hub has 175 validators (opens new window), but over time the number of validators can be increased with governance proposals. The validators are determined by the total number of ATOM tokens delegated to them — the top 175 validator candidates with the most voting power are the current Cosmos validators.
Executing the Tendermint consensus protocol earns validators and delegators ATOM as block provisions and tokens as transaction fees. Note that validators can set a commission percentage on the fees their delegators receive as additional incentive. Mintscan lists validators and their voting power.
If validators double-sign or are offline for a long time, their staked ATOM (including delegated ATOM) can be slashed. The penalty depends on the severity of the violation.
ATOM holders who can't or won't run a validator are delegators. ATOM holders can delegate their tokens to validators in exchange for revenue.
Delegators and validators share revenue and risk. If a validator misbehaves, their delegators' stakes are cut. Delegators must perform due diligence on validators before delegating. Spreading their investment across different validators adds security.
Delegators are accountable for choosing validators. Delegating isn't passive. Delegators must oversee and manage their validators [1].
ATOM is Cosmos Network's staking token. Cosmos aims to establish a scalable "internet of blockchains". ATOM uses are as anti-spam and staking tokens for governance voting.
Method
The ability to redelegate within the Cosmos staking program is also crucial. The definition of redelegation This means that users who are currently staking to a specific validator can switch to a different validator by unstaking their ATOM from the original validator and re-delegating it to a new validator.
In order to better understand how redelegations function in Cosmos and identify any recurring patterns, a new dashboard has been developed. Do people keep assigning tasks to the same validators? Have users abandoned certain validators in favor of others?
The cosmos.core.fact_msg_attributes table have been used to calculations.
This dashboard was made in a parametric mode with selectable time frequency, past months as the calculation time period, proposal IDs, and validators to choose your desirable options after logging in to Flipsidecrypto.
Some queries and visuals brought from Ali3N#8546 dashboard, Thanks to him.
✍🏻 Conclusion
As of Findings above:
- The peak of Redelegation activity on Cosmos occurred in the months of February and March 2022. There was a lot of ReDelegation activity, especially in terms of volume, on the major days of the collapses, but redelegation activity on Cosmos has decreased significantly since May (Terra Collapse) and after FTX collapse in November.
- During the voting period for proposals with IDs 64, 65, and 66, there was a lot of activity in redelegating tasks.
- The most Redelegations have occurred from SG-1 and Binance Staking validators to other sources. On the other hand, the most Redelegations came from sources outside of Imperator.co and Kraken validators.
- In terms of sheer volume, the most common redelegation path on Cosmos was from Binance Staking to SG-1, while the most common redelegation path from the old Kraken validator to the new Kraken validator was the opposite.
- Most validators have only cast a single vote on the vast majority of proposals on Cosmos. Regardless, validators were most active in modifying their votes on proposals #82 and #69.
And finally, I’m glad to share this research with those who care about this issue via Twitter link, and will be pleased by your comments.
About:
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Author: HaM☰d
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Discord: 0xHaM☰d#8391
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Twitter: @arjmandi_hamed
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Email: h_arjmandi2012@yahoo.com
Let's explore movement of delegation on Cosmos.
When delegators un-stake from one validator and move to another, is there any pattern to where they re-stake? Are users more likely to re-delegate after their validator votes in a way they disagree with? Do they re-align their stake with validators whose values reflect their own? How do validator votes change over the course of a proposal? Share any interesting voting statistics you find. Examine any voting propositions here (example: Prop 82) as a use case to explore these questions.
Hey there 👋!
Firstly, I appreciate you sticking with it until the conclusion.
I'm Hamed, a civil engineering Ph.D.
student interested in data analysis.
I've made many similar dashboards and visualizations since I started at Flipside in January.
Please take a look at my various contact details and let me know what you think.
:mag_right: Findings:
These graphs show how the frequency of redeployments has remained relatively constant throughout time. Starting in January 2022, the sum climbed to ATH, but beginning in April 2022, it began to drop until July. Since September, the number of daily redeployments has been fairly constant at bellow 2000. By comparing the number of redelegations to the structure of the stakers redelegating its ATOM, we can see that the two are very similar. Redelegators are currently numbering bellow 2K per week.
In terms of the volume redelegated, two major weeks stand out, with redelegated volume hitting around 20M on each occasion and exceeding 27M on the most recent peak (Second week of November).
Also, in the bubble chart right can be seen by the number of redelegate transactions count bellow 2K delegated volume was less than 10M and when transactions count went up to over 3K the volume rose to over 20M.