Understanding Gora Network’s Commission System: Running a Node vs. Delegating $GORA on Algorand
Gora Network offers $GORA on Algorand users the opportunity to actively participate and earn rewards through two main avenues: running a node and delegating $GORA tokens. Understanding the commission system and the potential earnings from each option is crucial for users to make informed decisions. Let’s delve into the details.
Being a Validator: When you run a node on the Gora Network, you play a crucial role in validating transactions and maintaining network integrity. As a node operator, you are entitled to receive rewards in the form of $GORA tokens. The Annual Percentage Rate (APR) for running a node is typically around 17%, which means you can earn approximately 17% of your staked tokens annually. ( this number will be updated according to $GORA Tokenomics )
Validators are the backbone of the Gora Network. They play a crucial role in verifying transactions, proposing new blocks, and finalizing the blockchain state. To become a validator, users must create a node and then stake 10K of $GORA tokens minimum. This staking requirement ensures that validators have a vested interest in maintaining the network’s integrity.
Follow this tutorial on how to run a node: https://www.youtube.com/watch?v=HSCvC6q3hyg
Anyone can run a Gora node, but to become a Validator you need to be approved by the Gora Network ( this a case-by-case scenario )
For instance, if you stake 10,000 $GORA tokens on your node as a Validator, you can expect to earn 1,700 $GORA tokens annually, assuming there are no delegators.
Delegating $GORA Tokens: Alternatively, users who don’t have the technical expertise or resources to run a validator node can still participate by delegating their $GORA tokens to a validator. By delegating, users contribute to the security and decentralization of the network while also earning rewards.
If you delegate ( stake ) :
- Check the Validator commission rate that is suitable for you
- Rewards are calculated on an annual APR which is 17% ( at this time ) minus the validator commission
- You can unstake at any time but rewards are only available once 1 $GORA minimum is accumulated in rewards
- Rewards are counted by every Algorand block which is 3.3sec approx..
- To stake your $GORA you need to have the tokens in your Algorand wallet, exchanges don’t work
As a node validator, you have the opportunity to set a commission rate for delegators who stake their tokens on your node. This commission is deducted from the rewards earned by the delegators. Typically, the commission rate ranges from 5% to 10% of the total rewards earned by the delegator.
For example, if you are a Validator who earns 17% APR on your delegator staked tokens, and you have set a commission rate of 10%, you as a Validator would receive 1.7% of their rewards, while the delegator receives the remaining 15.3% (approx). This actual 17% APR represents the annual total of the reward for a Validator, and from that total Validators decide how much their commission will be.
To stake your $GORA on Algorand straight on www.gora.io, follow this video: https://www.youtube.com/watch?v=YV3BS12E0DI
Choosing Between Running a Node and Delegating: Deciding whether to run a node or delegate your tokens depends on various factors, including hardware costs, technical expertise, and potential rewards.
Running your node can be more profitable, especially if you have a significant amount of $GORA tokens staked. However, it also involves additional responsibilities and costs associated with maintaining the hardware node infrastructure.
On the other hand, delegating tokens may be preferable for users who prefer a more hands-off approach and are willing to share a portion of their rewards with the node operator.
In conclusion, both running a node and delegating tokens offer opportunities for earning rewards on the Gora Network. Understanding the commission system and weighing the pros and cons of each option is essential for maximizing your earnings and contributing to the growth of the network.
Note: this commission system as explained here applies only for $GORA token on Algorand blockchain
