Bluzelle platform is known in the decentralized finance world as a platform that offers innovative decentralized database functionalities dedicated to blockchain applications like decentralized apps. The Bluzelle ecosystem is hosted on the COSMOS SDK, while it works with Tendermint.
Users and holders of the Bluzelle tokens can easily stake their tokens, and earn rewards from them. The staking of the BLZ tokens goes a long way to protect the network. The higher the number of stakes in Bluzelle, the increased the security of the platform is. It's not strange, as it is a Proof-of-Stake platform.
Once users stake their tokens, they earn block rewards from the platform. The rewards shared to stakers and validators come from the fees that are collected from transactions. It's not news that before a transaction can occur on the Bluzelle platform, fees have to be paid. The fees can be gas fees or taxes. The gas fees are dependent on complex or easy the transactions are. The taxes are either transfer taxes or fee taxes. Every transaction has a fee tax, though it is invisible to the user. The fee tax doesn't increase the fees paid, as it is already a part of the fees. The transfer taxes are meant for those that transfer BLZ tokens from one account to the other. The amount realizes from the fees on the platform are shared as block rewards to stakers and validators.
Who Are Delegators and Validators?
Before a validator can be run, the operator has to stake an amount of tokens. This means that they are token holders, like the delegators. The delegators are those that give their tokens to validators to stake. On the other hand, the validator operators stake using their own validators.
Both parties are eligible to have access to the block rewards.
Block Rewards
It's important to note that the block rewards we will be talking about today are those network fees like earlier mentioned, that are made from the transaction fees made on the platform.
Once the delegator stakes his tokens, they get a part of the rewards that are linked with the validators that they chose to use. Delegators are allowed to choose the delegator they want, as long as the delegator can accommodate them. If the space is filled, the delegator has to look for someone else.
The validator has its share of the block rewards too. Apart from that, they also get incredible commissions. The validators do a lot for the system, and they have to be rewarded for their efforts to encourage them to do more. The rewards given are paid in BLZ tokens.
Every validator has the right to fix the percentage of their commission. It can range from zero percent to twenty percent. The validator's commission is taken out of the delegator's rewards and paid directly to the validator.
The remnant, after the commission has been collected, is then paid to the stakers based on the proportion of what they staked.