How to participate the governance as a delegator
Function X Mainnet will be launched within the next 30 hours, and we are all excited as you are. In order to join the new ecosystem and enjoy the new features, make sure you have downloaded the latest version of f(x)Wallet. You can download f(x)Wallet directly from our website, for both iOS and Android versions or from App Store or Google Play.
We’d like to remind you again that do not forget to backup your recovery phrase once you have created a new account and store that phrase in a safe place. That phrase is the key to your account. Always remember: “Not your keys, not your coins.”
When launching the mainnet, we will release the f(x) Wallet update with some new features. They are:
- Enabling cross-chain transactions between the Ethereum and Function X Blockchains.
- Delegation: the ability to delegate tokens to validators on the FX Core.
Cross-chain transactions are one of the key features in our f(x)Wallet.
By integrating various ecosystems (Ethereum and others), we plan to increase the liquidity and value of assets created on Function X. Rather than building an ecosystem that competes with Ethereum, we aim to leverage on its strengths, for example, by providing asset aggregation contracts, connecting to Ethereum smart contracts, and generating interest at the same time in both (and more) chains. While we are leveraging the existing Ethereum infrastructure, at the same time FX Core provides an environment with higher speed and cheaper fees.
As a starting point, we are enabling cross-chain transfers between Ethereum and FX Core.
Take $FX for example. Users will be able to bridge their Function X tokens in ERC-20 to the FX Core through f(x)Wallet. This means $FX will be able to be utilized on both Ethereum and FX Core. Your FX tokens will be transferable — going in and coming out — between Ethereum and FX Core. There will be no conversion / wrapping action needed by the user, and the cross-chain transfer will be as simple and smooth as your usual on-chain transfer process.
This feature has been added to the new f(x) Wallet. Users just need to input the recipient address from the other chain and it will be detected by the f(x)Wallet as a cross-chain transaction. All cross-chain transactions will require a Bridge Fee to cover all the gas fees on the Ethereum blockchain. Currently, this feature is available for the Function X token ($FX), but more tokens will be added in the near future.
How to transfer FX from Ethereum Blockchain to Function X Network (FX Core)
Here are the steps to transfer tokens cross-chain between the Ethereum blockchain and Function X Network.
- Select the ERC20 address of $FX
Cross-chain transfer: Step 1
- Enter the amount of $FX you want to transfer
Cross-chain transfer: Step 2
- Enter the recipient address on FX Core of $FX. You will see fx is the prefix of FX Core address.
Cross-chain transfer: Step 3
- Confirm the cross-chain transaction
Cross-chain transfer: Step 4
- Sit tight and wait for the cross-chain confirmation between the blockchains. Once the cross-chain transaction is completed and confirmed, your $FX will arrive in your recipient’s FX Core address.
Cross-chain transfer: Step 5
This also works going in the other direction: you can repeat the same process to transfer from FX Core to the Ethereum blockchain. All transactions (including all cross-chain transactions) will be recorded on the Function X Explorer.
Other than cross-chain transfers, the delegation feature has also been added to the f(x) Wallet. $FX holders will be allowed to bridge to FX Core from the Ethereum network and delegate their $FX to the validators on FX Core.
For $FX holders, delegating $FX will help ensure the security of the network through participating in block validation. A list of validators will be shown in f(x)Wallet for users to choose from to delegate tokens.
As mentioned in the pre-launch AMA, once the Function X Mainnet launches, we will have 20–25 validators to validate the network. During the initial stage, the validators will consist of company-hosted validators. These validators will start with a minimal commission fee, which means that $FX holders that delegate to these validators will be able to earn maximum block rewards. Also, for security reasons, we would like to protect the network together with our community members to minimize the risks of your $FX delegation from the unknown validators. Once the mainnet is stabilized, the public-hosted validators will be able to set their own nodes on the FX Core.
Users can start to delegate when the Mainnet launches, and earn the block rewards from delegation. The process is simple. Choosing your preferred validator on FX Core and delegating your $FX can be done in just one click.
Here are the steps to delegate your FX tokens and earn rewards:
Notes: These screenshots are taken on the Testnet. Delegation features will be available after the Mainnet launch.
- Make sure you transfer your $FX from Ethereum blockchain to the FX Core. If you haven’t done it, you can follow the instruction above: “How to transfer FX from Ethereum Blockchain to Function X Network (FX Core)”.
Once you have $FX on the FX Core, go to the Delegation menu on the f(x) Wallet’s CryptoBnk
Delegate FX : Step 1
- Select the validator(s) you wish to delegate to. (Keep in mind that you can only delegate your $FX to one validator per delegation transaction. However, a delegator can delegate to multiple validators with multiple, different tokens in multiple delegation transactions.)
Delegate FX : Step 2
- Choose the validator
Delegate FX : Step 3
- Select your address to delegate $FX
Delegate FX : Step 4
- Enter the amount of $FX you want to delegate to that validator
Delegate FX : Step 5
- Confirm the delegation
Delegate FX : Step 6
- Transaction completed. Now you can check your delegated amount and the rewards on the Validator overview section.
Delegate FX : Step 7
To calculate the block reward, you can find the reward calculator at xwallet-tool-rewards-calculator. To stabilize the market, the delegated amount (principal) will take 21 days to be unlocked after the un-delegated (withdrawal) request has been made. For the block rewards, it will take 8 hours to be released after the withdrawal request has been made. Please note that, both withdrawal requests and un-delegate requests will require gas fees to perform.
As mentioned in the June Hash Out, during this early stage, the validators are company-hosted validators. However, these validators still have the possibility of being penalized because of unexpected downtime, node failures, and other technical issues if the validator node fails to perform. Penalties will be applied, no matter if it is a company-hosted validator or future public hosted validator.
The purpose of participating in governance is to secure the network together with the community. Rewards are designed to encourage the participation in governance and the penalties are designed to avoid the potential damage from hacks, attacks, technical issues or network down-time brought to the network, ensuring the network can run smoothly.
FX Core sees every single validator node and the delegators that delegates their voting power to that validator node as a whole, therefore both validator and delegators will receive the same treatment, proportionally, regardless of whether this is a reward or a penalty.
At this stage, the penalties during the consensus block verification process are set as follows:
For example, if validator node A has 10,000 $FX, which validator self-delegates 1,000 $FX and other delegators delegate 9,000 $FX. If validator node A has conducted a double-signal action, a 5% penalty will be imposed and that 5% penalty shall be borne by the validator and delegators proportionally
We’d like to remind you that it is not risk-free and there are uncertainties. Please do your own research and only put in what you can afford to lose.
As a closing note, we thank you for all your support and feedback. Make sure to follow us on Twitter, Facebook, Reddit as well as Github for detailed documentation. If you are interested in sharing ideas and participating in building the Function X ecosystem together to make it better, join our official Function X Forum.