Binance Smart Chain allows you to enjoy secure DeFi infrastructure and pay low fees. It is supported by 21 validators who process transactions, provide computing power and hardware, and ensure network security. In return, they receive rewards in the form of transaction fees and BNB staking earnings.
Do you also want to contribute to the growth of BSC and receive rewards? Any BNB owner has this opportunity - you just need to stake BNB as a delegate. Below we'll explain how it works and how you can get involved.
Introduction
The Binance Smart Chain (BSC) network is growing rapidly, with apps like PancakeSwap, Venus and many others showing strong growth. If you're new to the BSC ecosystem, you might want to check out our quick guide to the BSC network to get started.
Of course, creating an ecosystem and community of projects, infrastructure, developers, tools and users is not an easy task. This is what makes cryptocurrencies so promising and what makes open source software such a good thing for all.
The Binance Smart Chain (BSC) network is supported by validators and delegates from our community, who can stake BNB for a reward. If you're new to BSC or don't fully understand the role of validators and delegates, check out our article, The Path to Decentralization: Validators and Delegates.
The goal of validators is to transform the BSC network into a larger and more accessible ecosystem. But what does this mean in practice and how can you get involved?
Who are the Binance Smart Chain (BSC) validators?
The Binance Smart Chain network uses a consensus model called Proof of Staked Authority (PoSA), which is a hybrid of the Proof of Authority (PoA) and Delegated Proof of Stake (DPoS) models. This model provides short block creation times and low fees, since it requires only 21 validators to operate.
Validators take turns producing blocks and processing transactions to keep the BSC network running. In exchange for their services, they receive rewards in BNB tokens. To remain among validators, they need to be re-elected daily based on the number of tokens staked.
What are the requirements for validators? The validator needs to deploy a hardware node with the necessary characteristics, run a full BSC node and stake a minimum of 10,000 BNB. However, meeting these requirements is only sufficient to become a selected candidate.
To begin block production, a candidate validator must become an elected validator. Elected validators are the top 21 validator candidates with the most votes. They change every 24 hours as part of a continuous election process. You can find them in the list of the best validators on Binance.org.
Who are the Binance Smart Chain (BSC) delegates?
Not everyone can become a validator. So what options do regular users have?
An ordinary user can become a delegate and provide candidate validators with their BNB staked through any of the supported wallets. With staking, you can choose your preferred validator and help them reach the minimum volume as required.
Essentially, you are merging your BNB with your chosen validator. As we know, validators are rewarded with BNB, and cryptocurrency networks are very effective at creating economic incentives. You probably already understand what this means. In exchange for staking votes, the validator shares a portion of its profits with delegates, which ultimately benefits both parties.
Delegates also have the option to re-delegate. This means that they can transfer part of their staking from one validator to another. Re-delegation is a great way to support multiple validators at once.
Delegates can also “delegate” their staking. As the name suggests, this means that they stop delegating their staking to the validator. Please note that when "undelegating" there is a 7-day cancellation period, after which the delegate will be returned their BNB. During this period, the delegate does not receive BNB rewards.
Do I need to become a delegate on Binance Smart Chain (BSC)?
Of course, the choice is yours. By becoming a delegate, you delegate your staking to your chosen validator and also grant them the right to make management decisions on your behalf, as BNB tokens provide governance rights. Validators can control certain functions of the BSC network: adjust gas prices, change system parameters, and even carry out blockchain upgrades.
By delegating your BNB, you also increase the validator's share of the overall reward pool. Because you join forces, you both reap the rewards. In February 2021, the average daily staking reward for BCS network validators was 134 BNB, and the average annual return (APR) for BSC delegates was 60%.
Economic incentives are certainly great. However, the role of the delegate is not only to make a profit, but also to directly support the operation and security of the BSC network.
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How to become a validator on Binance Smart Chain (BSC)
So, you have decided to become a validator on the BSC network. What do you need to do?
To become a validator at BSC, you need to meet the following requirements:
Have the necessary equipment.
Run a full BSC node.
Stake at least 10,000 BNB.
By meeting these conditions, you will be included in the list of validator candidates and can potentially raise more BNB from delegates.
As of March 2021, the top 21 selected validators had over 150,000 BNB staked, so you will have a lot of competition (which is good for the network as a whole).
If you would like detailed technical information on how to become a validator, check out the BSC Validator Guide.
How to become a delegate on Binance Smart Chain (BSC)
If you don't want to learn all the technical requirements for validators, then the delegate role is your best choice. If you have BNB, you can simply stake it to support the BCS and make a profit.
Below we will cover how to stake BNB using popular wallets:
Binance Chain Wallet
Trust Wallet
MathWallet
Staking rewards are distributed among delegates daily at 03:00 Moscow time. The accrual of rewards begins on the second day after the delegation of BNB.
How much profit can you expect? Let's take as an example one of the popular validators – Ankr. As of March 2021, this validator returns 27% per annum. That's quite a lot. But remember that rewards are subject to change.
Summary
There are many ways for developers, users, and DeFi enthusiasts to get involved in the BSC ecosystem. However, staking BNB is a great opportunity to directly support the operation and security of BSC.
If you want to learn more about BNB staking, check out the Binance Chain documentation.
Still have questions about Binance Smart Chain validators and delegates? Visit our Q&A Ask Academy platform where the Binance community will answer your questions.
