What is the difference between Delegating and Staking?
1 Answers
The main difference is that delegation earns you ZNN, and staking earns you QSR.
The characteristics of the two options can be explained as follows:
Pillar Delegation (flexible ZNN rewards):
Delegation is the process of voting a pillar to use your ZNN in order to produce momentums. This increases the weight and the rank of a Pillar. In return, Pillars distribute a part of its rewards to the delegators to attract more votes and increase its ranking. They can be viewed as decentralized communities within NoM, where each pillar represents a set of core values and/or provide services to their delegators.
Note: this action neither locks nor transfers the balance of the delegating account. Which means you can freely move around your ZNN.
Delegation APY: up to 20%* (use https://zenon.tools/pillars to find current delegation APRs and pillar uptime)
Delegation requires at least 1 ZNN.
Staking (locked QSR rewards)
Staking ZNN will give you QSR rewards. Your ZNN will to be locked in a smart contract for a predefined amount of time (multiples of 30 days). After the locking period has ended, the staked amount can be refunded without any costs.
QSR is necessary to create Pillars & Sentinels slots. QSR also can be staked to generate additional rewards like Plasma — the asset used as network gas to confer feeless transactions.
Staking APY: up to 24%* (use https://zenon.tools/calculator to find current APR)
Staking requires at least 1 ZNN.
Additional Info:
Starters guide with pictures: https://medium.com/@znnoutlawz/zenon-network-all-in-one-starters-guide-1ba37b29d12e#dcdf
