🔑Key Benefits of Coaction

Delegator Stakeholdership

When delegators (i) stake their assets to validators that partner with Coaction Network and (ii) generate commission revenue for the Coaction's Treasury (the "Treasury") - they are issued CIT proportional to their share of network revenue. CIT can then either be burned for boosted staking rewards or held and staked on Coaction Networks app-chain validator nodes to earn additional CIT and participate in governance - see CIT Staking for more. Delegators to Coaction Infrastructure become stakeholders and share in the network’s growth & success, a novel concept within the Web3 staking world.

Validator Inclusion

Validators who are struggling to attract delegated stake may join Coaction Network to enjoy the benefits of inclusion like increased stake and profits from the Coaction Network's incentive mechanisms. Validators that join Coaction Network receive more delegated stake as a result of incentive mechanisms. While validators may have to give up a portion of commissions in order to attract more delegated stake, the increase in profits can make it economically rational to do so. Joining Coaction Network also allows validators to be part of a growing validator ecosystem that is committed to maintaining decentralization as a fundamental pillar of crypto. Lastly, the token model provides an extra revenue stream to validators that join the Coaction Network as 10% of the calculated CIT rewards from their delegated stake will be awarded to the validator.

Decentralization of Supported Protocols

Crypto-economic networks supported by Coaction Network will benefit from enhanced decentralization metrics (higher Nakamoto coefficients, more even distribution of stakes, etc.) as smaller validators band together and benefit from the flywheel driven by CIT distribution to delegators. Coaction Network finally gives the smaller delegators out there a way to compete with the top node operators, and decentralization will increase as a result.

If your network is struggling to adequately decentralize the validator set, don’t hesitate to reach out via Twitter or Discord to see how Coaction can help.