Frequently Asked Questions

FAQ

What is a delegate? A delegate is a Tezos identity/account, prefixed with "tz1" (not "TZ1" which designates a contract) that is configured to participate in network consensus, block generation, and endorsement signing. A delegate works in conjunction with a Tezos node that has a full copy of the Tezos blockchain.

Do I need a delegate? If you dont delegate yourself, or delegate to someone who will pay in rewards, your stake's value will diminish in comparison to others who do delegate.

I can be my own delegate? Yes, if you are technically inclined to 24x7 manage a full Tezos node, maintain security/software patches, updates, are willing to post up a security depoist for each block/endorsement you make (that you risk losing if you don't handle things exactly right). But - Tezzigator can handle all of this for you anonymously and securely, with zero risk to you.

How do I pick a delegate? Reddit, the RIOT chat, and the Tezos Community forums are great for research. Of course we think we are a GREAT choice, already operating in this same space with Ardoe & NXT delegation over the past few years. At height, controlling over 3millionUSD of block power, we are already trusted and experienced, and aim to gain trust with you.

What is a bond? This is a security deposit a delegate must put up to be held temporarily to endsure the delegate signs blocks and endorsements correctly. Currently it is held with the rewards for an additional 5 complete cycles after the cycle it was earned in closes.

Who pays the security deposit? As the delegator in our relationship, Tezzigator is the one who fronts the security deposits. Your ꜩ are never at risk. You get the best of both worlds; No one but you can spend your ꜩ and it's never at risk!

Does my ꜩ get locked when I delegate? No! You are free to transfer/spend your funds as you wish, as well as to change your delegate at any time.

I can delegate, AND spend my Tezos & change delegate??? Yes, but with caveats - To handle blockchain accounting, periodic balnace snapshots are randomly taken by the blockchain consensus algorithm. Your balance and delegate at the time of the snapshot is what matters for a delegate crediting you.

So how do I start the process? Simply use your Tezos client to send a "set delegate" operation (blockchain "transaction") using our IDENTITY address listed up top as the delegate

Identity? Contract? Account? When a Tezos "account" is created, there are really 2 parts to it. There is the tz1 "identity" which can be used for delegate duties. Then there is the TZ1 "contract" or "account" which can delegate out. Only TZ1 types can delegate out, and if they wish to do so, they must do so to a tz1 type.

Proof Of Stake: In a PoS system such as Tezos, your amount of Tezos operates very similar to a bitcoin (PoW, or proof of work) mining machine. Except it doesn’t burn nearly (*anywhere* near) as much electricity or require cooling. In bitcoin, the more mining power you have relative to everyone else, the more bitcoin blocks you mine. With Tezos, the more Tezos you own and have bonded/staked relative to everyone else staked/bonded, the more Tezos blocks you generate. Pooling in bitcoin is essentially analogous to delegation in Tezos. While much mining processing power (requiring much electricity and cooling) is required to secure the bitcoin network, Tezos will require a high percentage of Tezos out there actively participating in the network, and not just sitting in peoples’ wallets. This has been sort of a problem for PoS systems to date, but there is a clever solution, described next.

Non-dilutionary Inflation: One of the clever features Tezos has developed is the concept of non-dilutionary inflation, a solution to a big problem in PoS cryptocurrencies: how to make sure the PoS network stays secured and get people to actively participate in the network and not just keep their Tezos in their wallets. If you actively participate (described next) you get awarded a bonus of tezzies, beyond that of fees from transaction in the blocks you generate. Currently the estimate is 5.5%. With this estimate, if everyone participates, everyone gets 5.5% extra; thus the inflation is "non-dilutionary". So, you'll want to not just sit on your Tezos.

What about your security? We are building a 100% secure system, All baking will be done by our own hardware in locked down datacenters (no cloud for baking), using HSMs (hardware security modules). We will use SSL everywhere and will also use LUKS/LVM hard drive encryption with TPM security on our servers.