Set and Adjust Stake

What You'll Learn

Understanding how stake works for reputers and its role in network security
Complete guide to adding, removing, and canceling stake operations
Delegation management including staking to reputers and claiming rewards
Strategic considerations for optimal stake allocation and risk management

Overview

We define stake, motivate its use, and demonstrate how it can be adjusted.

How Stake works for Reputers

Stake is used to signal confidence. A reputer earns more rewards based on their accuracy comparative to consensus (the other reputers providing data for a topic) and stake.

Why Stake Matters

Stake also protects Allora from malicious behavior, such as sybil attacks. We require all types of nodes to register on the chain before they can earn any rewards. Registering requires staking at least a minimum amount of ALLO. As a result, creating an army of malicious nodes would quickly become prohibitively expensive.

Stake Functions:

Confidence signaling: Higher stake indicates stronger commitment to accuracy
Reward calculation: Stake influences reward distribution based on performance
Security mechanism: Prevents spam and malicious behavior through economic cost
Network governance: Stake provides voting power in network decisions

Prerequisites

allorad CLI: Command-line interface for network interactions
Funded wallet: Sufficient ALLO tokens for staking operations
Understanding of topics: Knowledge of which topics to participate in
Risk assessment: Evaluation of stake amounts and delegation strategies

Command Structure

Tx Functions

These functions read from the appchain only and do not write. Add the Command value into your query to retrieve the expected data.

Base Transaction Format:

allorad tx emissions [Command] --node <RPC_URL>

Important Notes:

All stake operations require gas fees
Stake changes may have unbonding periods
Always verify transaction success before proceeding

Self-Stake Management

Add Stake to Self

Transaction Details:

RPC Method: AddStake
Command: add-stake [sender] [topic_id] [amount]
Description: Adds stake to the sender for a specific topic.

Positional Arguments:

sender: The address of the sender adding stake.
topic_id: The identifier of the topic.
amount: The amount of stake to be added.

Use Case

Why use it?

This command is used when a reputer or worker wants to increase their stake in a specific topic, increasing their influence or authority.

Example Scenario:

As a reputer, you want to increase your stake in a specific topic to gain more influence and improve your reputation scores.

Strategic Considerations:

Higher stake increases potential rewards but also increases risk
Consider topic competitiveness when determining stake amounts
Monitor network performance to time stake additions optimally

Remove Stake from Self

Transaction Details:

RPC Method: RemoveStake
Command: remove-stake [sender] [topic_id] [amount]
Description: Removes stake from the sender (a reputer) in a specific topic.

Positional Arguments:

sender: The address of the sender removing stake (reputer).
topic_id: The identifier of the topic.
amount: The amount of stake to be removed.

Use Case

Why use it?

This command is used by reputers to reduce their stake in a topic, either for liquidity purposes or when their role in the topic has changed.

Example Scenario:

A reputer wants to reduce their stake in a topic after completing their contributions and being satisfied with the rewards.

Important Considerations:

Stake removal may have unbonding periods
Reduced stake means lower potential rewards
Consider market conditions before removing stake

Cancel Pending Stake Removal (Reputer)

Transaction Details:

RPC Method: CancelRemoveStake
Command: cancel-remove-stake [sender] [topic_id]
Description: Cancels the removal of stake that is pending for the sender (a reputer) in a topic.

Positional Arguments:

sender: The address of the sender canceling the stake removal (reputer).
topic_id: The identifier of the topic.

Use Case

Why use it?

This command allows reputers to cancel a stake removal request if they change their mind and wish to keep their stake in the topic.

Example Scenario:

A reputer wants to cancel their stake removal request because they decide to maintain their position in the topic for an additional epoch.

Practical Applications:

Market condition changes that make continued participation attractive
Improved topic performance that warrants continued involvement
Strategic repositioning based on network developments

Delegation Operations

Delegate Stake to a Reputer

Transaction Details:

RPC Method: DelegateStake
Command: delegate-stake [sender] [topic_id] [reputer] [amount]
Description: Delegates stake from the sender to a specific reputer for a topic.

Positional Arguments:

sender: The address of the sender (delegator).
topic_id: The identifier of the topic.
reputer: The address of the reputer receiving the delegated stake.
amount: The amount of stake to be delegated.

Use Case

Why use it?

This command is used by delegators to delegate their stake to a reputer, giving the reputer more authority and influence within a specific topic.

Example Scenario:

As a delegator, you want to support a reputer you trust by delegating your tokens to them for a particular topic.

Delegation Strategy:

Due diligence: Research reputer performance and reliability
Diversification: Consider spreading delegations across multiple reputers
Performance monitoring: Track delegated reputer effectiveness regularly
Risk management: Balance potential rewards with delegation risks

Remove Delegated Stake from a Reputer

Transaction Details:

RPC Method: RemoveDelegateStake
Command: remove-delegate-stake [sender] [topic_id] [reputer] [amount]
Description: Removes delegated stake from a reputer for a topic.

Positional Arguments:

sender: The address of the sender (delegator).
topic_id: The identifier of the topic.
reputer: The address of the reputer whose delegated stake is being removed.
amount: The amount of stake to be removed.

Use Case

Why use it?

This command is used when a delegator wants to withdraw or reduce the stake they have delegated to a reputer in a topic.

Example Scenario:

A delegator wants to reduce their stake delegated to a reputer after reassessing the reputer's performance in a topic.

Considerations for Removal:

Monitor reputer performance before removing stake
Consider alternative reputers for reallocation
Account for unbonding periods in liquidity planning

Cancel Pending Delegated Stake Removal

Transaction Details:

RPC Method: CancelRemoveDelegateStake
Command: cancel-remove-delegate-stake [sender] [topic_id] [reputer]
Description: Cancels the removal of delegated stake for a delegator staking on a reputer in a topic.

Positional Arguments:

sender: The address of the sender (delegator).
topic_id: The identifier of the topic.
reputer: The address of the reputer whose delegated stake removal is being canceled.

Use Case

Why use it?

This command allows delegators to cancel a delegated stake removal request if they change their mind and want to keep their stake with the reputer.

Example Scenario:

A delegator decides to cancel their pending stake removal and continue supporting the reputer in the topic.

When to Cancel:

Improved reputer performance during unbonding period
Changed market conditions that favor continued delegation
Strategic reallocation decisions that no longer apply

Reward Management

Claim Rewards for Delegated Stake

Transaction Details:

RPC Method: RewardDelegateStake
Command: reward-delegate-stake [sender] [topic_id] [reputer]
Description: Claims the rewards for a delegator who has delegated stake to a reputer in a specific topic.

Positional Arguments:

sender: The address of the sender (delegator).
topic_id: The identifier of the topic.
reputer: The address of the reputer to whom the stake was delegated.

Use Case

Why use it?

This command is used by delegators to claim their rewards based on the performance of the reputer they delegated stake to.

Example Scenario:

A delegator wants to claim their rewards for a topic after their reputer has successfully contributed to the topic's outcomes.

Reward Optimization:

Timing: Claim rewards regularly to compound returns
Reinvestment: Consider restaking rewards for increased future returns
Performance tracking: Monitor reward rates to assess delegation effectiveness
Tax considerations: Keep records of reward claims for reporting purposes

Best Practices

Stake Management Strategy

Risk Assessment:

Start small: Begin with modest stake amounts to understand dynamics
Diversify: Spread stakes across multiple topics and reputers
Monitor performance: Track reputer effectiveness and adjust accordingly
Stay informed: Keep up with network updates and parameter changes

Delegation Guidelines

Reputer Selection Criteria:

Performance history: Review past accuracy and consistency
Activity level: Ensure regular participation and responsiveness
Stake commitment: Look for reputers with significant self-stake
Communication: Prefer reputers who communicate with delegators

Operational Considerations

Transaction Management:

Gas costs: Factor transaction fees into stake calculations
Timing: Consider network congestion when submitting transactions
Confirmation: Always verify transaction success before proceeding
Record keeping: Maintain detailed records of all stake operations

Common Workflows

New Reputer Setup

Initial stake: Use add-stake to establish minimum required stake
Performance building: Focus on accuracy to attract delegators
Stake optimization: Gradually increase stake based on performance
Community building: Engage with potential delegators

Delegator Portfolio Management

Research: Analyze reputer performance across topics
Initial delegation: Use delegate-stake for promising reputers
Monitoring: Track performance and adjust delegations
Reward claiming: Regularly use reward-delegate-stake for returns

Risk Management

Performance monitoring: Regularly assess reputer effectiveness
Stake adjustment: Use removal commands when necessary
Diversification: Maintain balanced portfolio across reputers
Emergency procedures: Know how to quickly cancel operations if needed

Next Steps

Learn to query reputer data for performance monitoring
Understand reputer deployment to become a network participant
Explore reputer economics for advanced strategies

Deploy a Pre-configured Reputer How to Query Reputer Data using allorad