Today we are pleased to announce our new Delegator Protection Pool (DPP), a pool that holds $250,000 at the start of each quarter to reimburse any losses that delegators might endure as a result of Chorus One’s operations in the forthcoming quarter. We have decided to introduce our DPP to minimise the inconveniences of reward-monitoring for our delegators by assuring more optimal and reliable staking rewards for them in pursuit of enhancing their staking journey.
The Delegator Protection Pool will be activated immediately and is available for any user who has delegated assets to any of Chorus One’s nodes. The Delegator Protection Pool is a pool that holds US $250,000 at the start of every quarter. The Delegator Protection Pool will be used to reimburse delegators if they have missed any staking rewards that could be directly attributed to a disruption in Chorus One’s node operations (e.g. downtime, double-signing or other network-imposed penalties). For the Delegator Protection Pool to trigger, the sum of staking rewards missed out on by all delegators on a network per incident must be greater than US $25,000. The Delegator Protection Pool will reset to US $250,000 on the first day of every quarter. For example, if $100,000 is used to reimburse delegators in Q3 2021, the pool would have decreased to $150,000. On October 1st 2021, the first day of Q4 in this example, the Delegator Protection Pool would reset to the maximum US $250,000, which would be then used to cover delegators for any incidents that might occur in that quarter (Q4). Delegators will be able to find out details about any Chorus One operational incident that has triggered the Delegator Protection Pool in a fully transparent sheet that will be continuously updated and shared with the community. The sheet will include a list of addresses that have been impacted by an arbitrary incident and show the amount of funds each address can expect to be reimbursed that would have otherwise been missed out on by affected delegators. Delegators can expect to receive reimbursement if they qualify for it within 7 days of an incident occurring and will be paid back in the native token of the network in which the incident occurred.
We have created our Delegation Protection Pool because we want to minimise inconveniences for delegators. Delegators should be able to receive reliable rewards without having to police their validator’s performance. Delegators deserve to receive straightforward, reliable rewards for securing networks of their choosing. The networks that our infrastructure secures are complex. It is our responsibility to understand complex decentralised networks and ensure our delegators receive the maximum amount of rewards they should earn for securing a given network. We value our delegator’s time and understand that delegators do not want to constantly monitor their validator’s performance. We take full ownership of our performance and want to relay assurance of our performance onto delegators to guarantee them of their staking rewards. Staking rewards on a given network can be volatile due to a number of parameters that affect the variable rate of rewards. Validator performance on a network can also impact delegator reward volatility. Our Delegator Protection Pool aims to eliminate the validator performance reward volatility to give our delegators optimal and reliable rewards. In doing so, we aim to improve our provision of staking services by saving our delegators time that otherwise might have been spent inconveniently monitoring our validator’s performance.
We place a high importance on providing the best staking service possible for our delegators via 24/7 support, accountability, transparency and community. Our Delegator Protection Pool is a welcome addition to our already considerable list of customer service offerings. Other such customer service offerings include technical staff being available 24/7 to respond quickly to any delegator support tickets and an active Chorus One community on Telegram that anyone can join to discuss important network updates and upgrades. Transparency is also a core value for Chorus One. In a world where it is quite often difficult to understand how validator operations might impact delegator staking rewards, we are making it our duty to fully communicate whenever our operations have caused our delegators to miss out on staking rewards. No business is perfect and sometimes operational mishaps can occur due to unforeseen circumstances. We are accountable to our delegators who have entrusted us with their assets. We will have an announcement for every operational incident that we endure, which affects delegator rewards that describes exact details of the incident including what happened, what the penalty was, which delegator addresses were affected and what we will do to avoid the penalty again.
We value our community of delegators that choose to stake with Chorus One and we are constantly thinking of ways to improve our staking service and experience. The introduction of our Delegator Protection Pool aspires to give our delegators peace of mind that they will earn the full staking rewards they deserve without the hassle of having to monitor our validator’s performance. You don’t need to delegate assets to our nodes to get involved in the Chorus One community. We encourage anyone to join our Telegram or follow us on social media to share their thoughts about Chorus One’s activities or events happening on other decentralised networks.
Chorus One provides staking and interoperability solutions on over 25 decentralized networks.