Nomination Pool

Nomination pool is a feature of DENTNets staking system that allows users to pool their DENTX together on-chain to nominate validators and receive rewards. It allows anyone with as little as 1 DENTX to receive staking rewards.

Nomination pool differs from nominating directly, which requires a larger investment and is an active task where you need to regularly monitor that your stake is backing an active validator in all the eras. Participating in the pool is more of a set-and-forget action where the pool operator (DENT) maintains the list of validators nominated by the pool. In a way, you trust the pool operator to act on your behalf, actively monitor the selected validators, and ensure that staking rewards are received.

Joining a pool

To join, you need to transfer some amount to the pool that you will agree to lock (bond) to earn part of the staking rewards that the pool receives. Your rewards will be proportional to your share, e.g. if your deposit is 1 DENTX in a pool of 100 DENTX you will get 1% of the rewards it receives. You will start earning from start of the next era after joining, which can be up to 24 hours.

The funds you bond in a pool will not be visible in your account balance, as they are transferred from your account to the pool. Your pooled funds are not accessible by anyone (including the pool operator).

Once you have joined, you can see your accrued rewards on the staking dashboard and request a payout at any time, which will then be transferred directly to the account that you joined the pool with. You may also choose to compound the rewards to increase your pool share instead of withdrawing.

Bonded funds

The bonding period on DENTNet is 7 days meaning it takes that long should you decide to leave the pool before you can get your funds back. Leaving the pool will pay out any remaining accrued rewards. You may also partially unbond, i.e. withdrawing part of your deposit, with the same time restriction.

You cannot rejoin the pool during the unbonding period. If you change your mind, you must wait for the unbonding period to end before joining the pool again.

It is possible to increase your share by bonding additional funds, in which case you will start earning rewards on the new share from start of the first era after the deposit.

Bonding transactions automatically trigger the withdrawal of rewards.

When there is a change (increase/decrease) of your bonded balance, your accumulated rewards in the pool are automatically withdrawn to your account.