> For the complete documentation index, see [llms.txt](https://cvnnt.gitbook.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cvnnt.gitbook.io/documentation/system-architecture/governance/covenant-verification-model/delegated-stake.md).

# Delegated stake

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Note: This chapter is currently under development.
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To intensify user participation in governing the Covenant system and to add a natural source of entropy, Covenant utilizes delegated staking mechanics.

### Delegated staking requirements

There are generally no requirements to the user to participate in delegated staking. Users can delegate their stake to master nodes to indirectly participate in governance processes and receive an amount of reward for their activity.

### Delegated stake rewards in native assets

Currently \~2% of Covenant system master node rewards in native assets (native BTC, etc.) are used to reward delegate stakers. Reward parameters primarily depend on amount of delegate stakers.

### Receiving delegated stake rewards 

Delegate stakers receive their rewards from Covenant system pools automatically via smart contracts on the address they provided on the network the reward asset is native to.

### Delegated stake opportunities

Unlike many other systems, on Covenant system user' delegated stakes ARE NOT subject to slashing for master node misbehaviour.

Delegated stake participants can stake and unstake instantly, before or during the validation round. Also, participants can stake in multiple nodes simultaneously. 

Delegated stakes are performed in a self-custody manner - by "freezing" assets onchain using Bitcoin-alike scripts and smart contract management.

Thus, a user can perform a complex delegated stake strategy to improve their reward amounts based on their validation performance analysis and other users’ behaviour.

Permissionless delegated stake operations, which data flow is dynamically stochastic thus impossible to predict, allow Covenant to add natural user-created publicly-verifiable entropy to Covenant operational activity data, improving Covenant system security.

### Frequently asked questions

<details open>

<summary><strong>Can my delegated stake be slashed?</strong></summary>

No, user' delegated stakes ARE NOT subject to slashing.

</details>

<details>

<summary><strong>What are rewards for delegated staking?</strong></summary>

Currently \~2% of total Covenant system master node rewards in native assets (BTC, etc.) are used to reward delegate stakers. Reward parameters primarily depend on amount of delegate stake participants.

</details>

<details>

<summary><strong>How do I receive my rewards?</strong></summary>

Delegated stakers receive their rewards automatically on the address they provided on the network the reward asset is native to.

</details>