HIP-10: Auto-Delegation of Staking Rewards

Summary: This proposal is to add an auto-delegate feature for staking rewards.

Background: Currently, the protocol does not include an auto-delegate feature for staking rewards, and delegators must manually delegate any rewards claimed. Manual delegation of staking rewards adds an extra layer of time and complexity to the staking process, thus acting as a barrier to achieving higher levels of staking participation. Furthermore, auto-delegation of staking rewards is one of the most commonly requested features of the community.

Motivation: To increase staking participation by streamlining the delegation process while responding to community feedback. Increased staking participation results in a more decentralized and secure network benefiting all stakeholders. Streamlining the delegation process, particularly re-delegations, improves staking efficiency and reduces barriers to staking.

Specification: Adding an auto-delegation feature that automatically delegates any staking rewards earned by a delegator to the validator(s) with which they’re delegated. This feature can be toggled on/off by the delegator.

Suggested Voting Option: Agree or Disagree to add an auto-delegate feature for staking rewards.

Link: TBD

  • Agree
  • Disagree

0 voters

6 Likes

I like this, however I think the auto delegation should be a feature than you can turn off or on. I prefer to not auto delegate sometimes as I want to move those rewards off the site.

Could it be written so you have the choice (maybe a button) to auto delegate with each validator you stake with? For instance, maybe I’m staking with validator A, B and C. Maybe I want auto restake on A and B but not C.

Or maybe it’s only possible to turn the feature off or on overall? I just feel like people should have the choice.

-SnacksFighter Validator

19 Likes

I fully support this feature. There is a ton of demand in the community for this.

9 Likes

Yes, the intent would be to add a switch that delegators could toggle on and off. As far as more advanced features, I’ll let the Harmony team chime in on what’s possible from an implementation standpoint. This proposal is essentially laying the groundwork for auto-delegation at the protocol level and I’m sure many more great ideas like yours will come from it.

I updated the proposal to mention the toggle switch.

11 Likes

Community member here. I like the proposal but I think it would be nice to have more control from part of the delegator.

To me the delegator should be able to:

  1. Decide if unable or not Auto-Delegating

  2. Where the rewards should be Auto-delegated (which validator)

  3. What percentage of rewards should go to which validator

6 Likes

This is a much needed feature. It will actually solve a lot of the issues we get with delegators that unstake their holdings and to add the rewards to the validator by restaking. This causes them to lose an Epoch of rewards for doing so.

2 Likes

This is a strong yes and a big win for delegators as well as validators :key:

2 Likes

It would also be interesting like within my 401k retirement plan from work, that it could redistribute based on a percentage if you use multiple Validators

2 Likes

Good idea!
A button to enable the feature if user chooses to do so, would be great.

2 Likes

Yes! This would help us immensely

2 Likes

I’d love to see this feature added!

2 Likes

This feature would be amazing and streamline the staking process :slight_smile:

2 Likes

Will we need 100 one as rewards for this to happen ?

1 Like

Based on my initial discussions with the Harmony core developers, the rewards would automatically be delegated when earned, thus bypassing the normal accumulation of claimable rewards. Therefore I do not think the minimum 100 ONE delegation would apply here, but that still needs to be confirmed with the core dev team. We can certainly aim to clarify that for you.

7 Likes

Since we can they are going to remove the undelegating time period I think we can just undelegate and redelegate daily with whatever rewards we get.

1 Like

This would be amazing. This is how my cardano staking is and it is a wonderful feature

2 Likes

We’ve seen this request a number of times in the Reddit community r/Harmony_One; it’s a feature I think would receive a great amount of support. I’m in full support. I think beginning with basic/core functionality could help gain stronger support from developers, have the community evaluate usability, then pivot or adjust with a phase-2 change down the road with additional feature assuming they’re viable from a development standpoint.

I think your specification is great start for phase-1.

Definitely a ‘YES’ from me.

4 Likes

I also agree on adding a switch and enrich the possibilities! also reducing the withdraw time would be widely appreciated!!!

1 Like

Thank you for bringing this. Most DRIP for the stock market are set up with the option to reinvest dividends. For some I’m sure it seems trivial but I believe this will be big for us.

1 Like

Thanks for the proposal. There are much more to be considered like @dfgelato mentioned. We don’t want to add complicated control at the protocol level. An ideal solution would be a layer 2 solution built on top of the core protocol. At the protocol level, we can expose the staking and rewards data to the smart contract, and a defi project could be built to do auto-delegation based on the user’s input with many different parameters.

6 Likes