Delegated staking is the mechanism through which MNTx holders can participate in the infrastructure reward economy without owning a private Switch Node or Validation Node. It exists because the minimum staking thresholds for private nodes (50,000 MNTx for a Switch Node and 10,000 MNTx for a Validation Node) represent a meaningful barrier for smaller holders. Delegated staking removes that barrier entirely.

Of the 2,500 Validation Nodes in the network, one is permanently reserved as a public delegated staking node. Any MNTx holder can contribute tokens to this node without meeting a private node's minimum threshold. The node operates identically to every other Validation Node on the network, performing the same quality monitoring, integrity checking, and reachability verification tasks, and it is accorded rewards on the same basis.

Activation

The delegated node only becomes reward-bearing once the minimum staking threshold of 10,000 MNTx has been crossed across all delegated participants combined. Below that threshold, the node does not qualify for epoch rewards. Once the threshold is met and maintained, it participates in reward distributions in line with all other Validation Nodes.

Reward Split

Stage Detail
Rewards generated In line with all other Validation Nodes
Burn applied 50% of accumulated rewards burned
Distributed Remaining 50% shared pro rata among delegated stakers

The 50% burn applied to the delegated node is separate from and additional to the algorithmic burn that affects the wider 60% staker pool. It reflects the distinction between delegated participation and direct node ownership.

Private node operators carry the full operational and financial commitment of securing a node. The delegated model offers access to infrastructure rewards with a lower barrier, and the additional burn reflects that difference while still making participation meaningfully rewarding.

Pro Rata Distribution

The 50% that survives the burn is distributed among delegated stakers in proportion to their individual contribution to the total delegated stake. A participant who has delegated 10% of the total tokens staked on the public node receives 10% of the distributable balance that epoch. There is no fixed yield and no minimum reward. Outcomes depend on the size of the delegated pool, the network's telecom revenue used to algorithmically purchase MNTx from the open market for DePIN Service Fees that epoch, and each participant's proportional position.

Why It Matters

Delegated staking is one of the most important participation pathways in the ecosystem. Without it, infrastructure rewards would be exclusively accessible to holders with enough MNTx to meet a full node threshold. The delegated model ensures that the reward economy extends to the broader community, connecting everyday token holders to the same revenue-backed reward cycle that private node operators benefit from, without requiring them to provision hardware, manage infrastructure, or commit to a full node position.