Methodology

• Find all the delegate events for each delegator.
  • Note down the commission of the validator delegated to as well as the $SOL amount delegated.
• Chart all the findings for metrics like number of wallets, number of delegations and amount delegated.
• For finding the sensitivity, we look at how often the delegators delegate to a validator with lower commission
  • Find all the delegate and withdraw events for each delegator.
  • Join all the delegate and withdraw events for each delegator with the information for last delegation/withdraw.
  • We are excluding 100% commission validators (those are private people are just staking to themselves).
  • Filter out all the events where event_type = delegate and the previous event_type was withdraw and the previous withdrawal was > 2days ago as compared to the current delegation.
    • There is no clear documentation on how long it takes for a withdraw the staked SOL, however as per the findings it is around 2-3 days/ 1 epoch.
    • We are assuming 2 days in our calculation.
    • Sources: * * *

Definitions Used

-- stake_authority The wallet address of the user who initialized the transaction.
-- withdraw_authority The wallet address of the user that is withdrawing the stake. 
-- node_pubkey A unique key belonging to the validator node.
-- validator_rank The rank of the validator by amount of delegated SOL.
-- commission The percentage of staked earnings given to the validator.
-- validator_name The name of the validator when available. 
-- withdraw_destination The wallet that the SOL is being withdrawn to. 

How sensitive are they?

• To answer this we look at the re-delegations and what is the difference between the commission when the delegators re-delegate.
• So most of the delegators re-delegate to validators with 2-5% or 6-10% less commission.
• Also, looking at the scatter plot most of the wallets delegating are to a difference of 5% less commission, which suggests the delegators are very sensitive to even 5% change in commission.

Are delegators commission sensitive ?

• To answer this question, we look at three different metrics:
  • Number of wallets delegation
  • Number of delegations
  • Amount delegated.

Number of wallets delegation

• The metrics suggest that most of the wallets delegating, delegate to a validator with less commission like 7%, 10% or 0%.

Number of delegations

• The metrics suggest that most of the delegating transactions are delegations to validators with less commission like 7%, 10% or 0%.

Amount Staked.

• This seems to suggest totally something different to other metrics, the most amount staked is staked with validators with 10% commission, followed by 7% and 0%.
• This seems to be inline with people delegating to validators with less commission.