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28 changes: 14 additions & 14 deletions pages/en/curating.mdx

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18 changes: 9 additions & 9 deletions pages/en/delegating.mdx
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Expand Up @@ -8,29 +8,29 @@ By delegating to an Indexer, Delegators earn a portion of the Indexer's query fe

## Delegator Guide

This guide will explain how to be an effective Delegator in the Graph Network. Delegators share earnings of the protocol alongside all Indexers based on their delegated stake. A Delegator must use their best judgement to choose Indexers based on multiple factors. Please note this guide will not go over steps such as setting up Metamask properly, as that information is widely available on the internet. There are three sections in this guide:
This guide will explain how to be an effective Delegator in the Graph Network. Delegators share earnings of the protocol alongside all Indexers based on their delegated stake. A Delegator must use their best judgment to choose Indexers based on multiple factors. Please note this guide will not go over steps such as setting up Metamask properly, as that information is widely available on the internet. There are three sections in this guide:

- The risks of delegating tokens in The Graph Network
- How to calculate expected returns as a Delegator
- A Video guide showing the steps to delegate in the Graph Network UI
- A video guide showing the steps to delegate in the Graph Network UI

## Delegation Risks

Listed below are the main risks of being a Delegator in the protocol.

### The delegation tax

Delegators cannot be slashed for bad behavior, but there is a tax on Delegators to disincentivize poor decision making that could harm the integrity of the network.
Delegators cannot be slashed for bad behavior, but there is a tax on Delegators to disincentivize poor decision-making that could harm the integrity of the network.

It is important to understand that every time you delegate, you will be charged 0.5%. This means if you are delegating 1000 GRT, you will automatically burn 5 GRT.

This means that to be safe, a Delegator should calculate what their return will be by delegating to an Indexer. For example, a Delegator might calculate how many days it will take before they have earned back the 0.5% tax on their delegation.

### The delegation unbonding period

Whenever a Delegator wants to undelegate, their tokens are subject to a 28 day unbonding period. This means they cannot transfer their tokens, or earn any rewards for 28 days.
Whenever a Delegator wants to undelegate, their tokens are subject to a 28-day unbonding period. This means they cannot transfer their tokens, or earn any rewards for 28 days.

One thing to consider as well is choosing an Indexer wisely. If you choose an Indexer who was not trustworthy, or not doing a good job, you will want to undelegate, which means you will be losing a lot of opportunity to earn rewards, which can be just as bad as burning GRT.
One thing to consider as well is choosing an Indexer wisely. If you choose an Indexer who was not trustworthy, or not doing a good job, you will want to undelegate, which means you will be losing a lot of opportunities to earn rewards, which can be just as bad as burning GRT.

<div sx={{ mx: 'auto', maxWidth: '400px' }}>
![Delegation unbonding](/img/Delegation-Unbonding.png) _Note the 0.5% fee in the Delegation UI, as well as the 28 day
Expand All @@ -41,7 +41,7 @@ One thing to consider as well is choosing an Indexer wisely. If you choose an In

This is an important part to understand. First let's discuss three very important values, which are the Delegation Parameters.

Indexing Reward Cut - The indexing reward cut is the portion of the rewards that the Indexer will keep for themselves. That means, if it is set to 100%, as a Delegator you will get 0 indexing rewards. If you see 80% in the UI, that means as a Delegator, you will receive 20%. An important note - in the beginning of the network, Indexing Rewards will account for the majority of the rewards.
Indexing Reward Cut - The indexing reward cut is the portion of the rewards that the Indexer will keep for themselves. That means if it is set to 100%, as a Delegator you will get 0 indexing rewards. If you see 80% in the UI, that means as a Delegator, you will receive 20%. An important note - at the beginning of the network, Indexing Rewards will account for the majority of the rewards.

<div sx={{ mx: 'auto', maxWidth: '700px' }}>
![Indexing Reward Cut](/img/Indexing-Reward-Cut.png) *The top Indexer is giving Delegators 90% of the rewards. The
Expand All @@ -50,7 +50,7 @@ Indexing Reward Cut - The indexing reward cut is the portion of the rewards that

- Query Fee Cut - This works exactly like the Indexing Reward Cut. However, this is specifically for returns on the query fees the Indexer collects. It should be noted that at the start of the network, returns from query fees will be very small compared to the indexing reward. It is recommended to pay attention to the network to determine when the query fees in the network will start to be more significant.

As you can see, there is a lot of thought that must go into choosing the right Indexer. This is why we highly recommend you explore The Graph Discord to determine who the Indexers are with the best social reputation, and technical reputation, to reward Delegators on a consistent basis. Many of the Indexers are very active in Discord, and will be happy to answer your questions. Many of them have been Indexing for months in the testnet, and are doing their best to help Delegators earn a good return, as it improves the health and success of the network.
As you can see, there is a lot of thought that must go into choosing the right Indexer. This is why we highly recommend you explore The Graph Discord to determine who the Indexers are with the best social reputation, and technical reputation, to reward Delegators consistently. Many of the Indexers are very active in Discord and will be happy to answer your questions. Many of them have been Indexing for months in the testnet, and are doing their best to help Delegators earn a good return, as it improves the health and success of the network.

### Calculating Delegators expected return

Expand All @@ -77,9 +77,9 @@ A Delegator can therefore do the math to determine that the Indexer offering 20%

### Considering the delegation capacity

Another thing to consider is the delegation capacity. Currently the Delegation Ratio is set to 16. This means that if an Indexer has staked 1,000,000 GRT, their Delegation Capacity is 16,000,000 GRT of Delegated tokens that they can use in the protocol. Any delegated tokens over this amount will dilute all the Delegator rewards.
Another thing to consider is the delegation capacity. Currently, the Delegation Ratio is set to 16. This means that if an Indexer has staked 1,000,000 GRT, their Delegation Capacity is 16,000,000 GRT of Delegated tokens that they can use in the protocol. Any delegated tokens over this amount will dilute all the Delegator rewards.

Imagine an Indexer has 100,000,000 GRT delegated to them, and their capacity is only 16,000,000 GRT. This means effectively, 84,000,000 GRT tokens are not being used to earn tokens. And all the Delegators, and the Indexer, are earning way less rewards that they could be.
Imagine an Indexer has 100,000,000 GRT delegated to them, and their capacity is only 16,000,000 GRT. This means effectively, 84,000,000 GRT tokens are not being used to earn tokens. And all the Delegators, and the Indexer, are earning way less rewards than they could be.

Therefore a Delegator should always consider the Delegation Capacity of an Indexer, and factor it into their decision making.

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