Voting on Lisk
Voting for delegates gives Lisk users the opportunity to choose who they trust to secure the Lisk network and validate the transactions that are sent on it. It also allows users to make their LSK tokens work for them and earn rewards for voting.
Lisk uses a DPoS (Delegated Proof of Stake) consensus protocol. Consensus protocols are designed specifically to maintain an agreement on the truth across a network scattered around the world. They are used as a way to validate transactions while making it absolutely impossible to add transactions that should not be there or to cheat the network.
Delegated proof of stake uses a system of real-time voting to allow token holders to select who they believe are the most suitable candidates to keep the network running smoothly. Naturally, it is the those who are holding the tokens who would want what is best for the overall network as the stability of the network can be reflected in the value of the LSK token. The amount of validators can vary between networks, in the Lisk ecosystem there are 101 delegates, all having secured enough votes to be in their position.
How to vote for Lisk delegates?
In order to cast their votes a user will need to access their Lisk Hub and click onto the ‘Delegates’ option. At this point a user can select whichever delegates they see fit to secure the Lisk network.
Every voting round costs 1 LSK as a network fee. During every voting round a total of 33 delegate can be voted for, with the total possible amount of votes cast being 101. The value of each vote is determined by the total amount of LSK tokens held in that particular wallet, this is known as ‘Vote Weight’. Once a delegate is supported from an account, that support will remain until the vote is changed or removed by the user.
As delegates are the individuals securing the network, it is highly recommended to do some research around the reliability of each potential delegate. There are several sites created by the Lisk community which can assist in the process.
Why should I vote?
It is important for each holder of the LSK token to make full use of their ability to vote with their tokens. First of all, it is in everybody’s interest that the network is secured by the best possible parties. Every LSK holder will want what is best for the value of their token and that value stems from the stability of the Lisk network. Making sure that the delegates that can be relied upon to have their nodes up and running and to not miss the blocks that they are designated to broadcast is absolutely integral to the value of the network.
The majority of LSK tokens are still kept on exchanges, meaning that they cannot be used to vote or earn rewards for the people who are holding them. This is a waste as there is a lot of potentially powerful votes, that could improve how the network is run, that are simply not being utilized.
Voting also gives LSK holders a way to earn rewards for the tokens that they possess and to get more out of holding the tokens. Certain delegates will incentivize token holders to vote for them by offering portions of their rewards out to the voters. This means LSK token holders can earn more tokens by simply holding and voting with the tokens. However, it is worth noting that in order to earn a worthwhile amount of tokens, a holder will need to have a certain, albeit by no means unrealistic, amount of LSK tokens. Payouts can differ between delegates and it is recommended that everyone do their own individual research before committing any votes.
The time and amount of rewards a voter will receive is entirely dependant on the delegates that they vote for. Almost all delegate share a different percentage of their rewards and at different intervals. A second factor that determines how many rewards a voter can expect is the voting weight that they have in their wallet. Naturally, the more voting weight a wallet has, the more rewards the owner will receive.
Voting is a key component of the DPoS (Delegated Proof of Stake) consensus protocol, ensuring that the network is governed by suitable, capable and democratically chosen delegates. In the Lisk ecosystem, the DPoS also allows token holders to earn more tokens for ensuring that the best parties are securing the network.