The Differences Between Validation and Delegation on Avalanche

Validation

Validation in the context of staking refers to the act of running a node on the blockchain network to validate transactions and secure the network.

• Stake Requirement: To become a validator on the Avalanche network, one must stake a minimum amount of 2,000 AVAX tokens on the Mainnet (1 AVAX on the Fuji Testnet).
• Process: Validators participate in achieving consensus by repeatedly sampling other validators. The probability of being sampled is proportional to the validator's stake, meaning the more tokens a validator stakes, the more influential they are in the consensus process.
• Rewards: Validators are eligible to receive rewards for their efforts in securing the network. To receive rewards, a validator must be online and responsive for more than 80% of their validation period.

Delegation

Delegation allows token holders who do not wish to run their own validator node to still participate in staking by "delegating" their tokens to an existing validator node.

• Stake Requirement: To delegate on the Avalanche network, a minimum of 25 AVAX tokens is required on the Mainnet (1 AVAX on the Fuji Testnet).
• Process: Delegators choose a specific validator node to delegate their tokens to, trusting that the validator will behave correctly and help secure the network on their behalf.
• Rewards: Delegators are also eligible to receive rewards for their stake. The validator they delegate to shares a portion of the reward with them, according to the validator's delegation fee rate.

Key Differences

• Responsibilities: Validators actively run a node, validate transactions, and actively participate in securing the network. Delegators, on the other hand, do not run a node themselves but entrust their tokens to a validator to participate on their behalf.
• Stake Requirement: Validators have a higher minimum stake requirement compared to delegators, as they take on more responsibility in the network.
• Rewards Distribution: Validators receive rewards directly for their validation efforts. Delegators receive rewards indirectly through the validator they delegate to, sharing a portion of the validator's reward.

In summary, validation involves actively participating in securing the network by running a node, while delegation allows token holders to participate passively by trusting their stake to a chosen validator. Both validators and delegators can earn rewards, but validators have higher stakes and more direct involvement in the Avalanche network.