What is bonding / delegation?

What is bonding / delegation?

Bonded tokens are those present in the active pool. These are tokens that can be counted for the purpose of voting.

What is a User?

Users are persons who hold $CHEQ. Users are able to delegate tokens to Node Operators in order to have those tokens bonded and added to the active pool.

What is a Participant?

Once a User has delegated tokens to a Node Operator and has tokens added to the active pool, they are known as "Participants".
Users can delegate to multiple Node Operators at the same time to diversify their bonded token portfolio.
There are multiple reasons why Users may want to delegate their tokens:
The hard-coded goal for bonded tokens on the cheqd Network is 60%.
Below 60% bonded tokens, the rate of inflation on the cheqd Network will increase, tending to 4% (inflation max). Above 60% bonded tokens, the rate of inflation will decrease, tending towards 1% (inflation min).