▶️Reward Socialization

Validators have the freedom to set their own commission rates, which means that delegating to different validators may result in varying rewards over the same period. For example, delegating to validator A may not provide the same rewards as an equal delegation to validator B over a given time frame.

To ensure fungibility across validators and maintain the equal value of qAsset holdings, the Quicksilver protocol employs a mechanism called reward socialization. This mechanism ensures that all qAsset holders receive the same Asset rewards, regardless of the validators they choose to delegate to. In other words, the collective Asset/qAsset redemption rate will increase uniformly for all holders.

User-Directed Staking

Despite the reward socialization mechanism, the Quicksilver protocol is designed to allow users to direct the protocol regarding which validators they prefer for staking on their behalf. This feature is known as Signaling Intent.

Signaling Intent empowers users to express their preferences and maintain control over their staking decisions while still benefiting from the fungibility and equal rewards provided by the protocol's reward socialization mechanism.

Non-staking Denominations

When rewards are received in non-staking denominations (for example, ICS Rewards from Cosmos Hub, and USDC Rewards from DyDx), they are distributed according to the user's proportional ownership of the qAsset supply for that chain, determined by claims, once fees have been deducted.

Rewards pertaining to the unclaimed portion of the supply are distributed to QCK token holders.

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