The delegate’s main task is to set and enforce the network’s basic rules, maintain stable operation of the blockchain and generate blocks. Delegates also receive profits from transaction fees. Each member of the network can become a delegate but only for a short time.
The network pays delegates to generate new blocks and includes new transactions in them. Delegates may opt to spend these funds on marketing or lobbying the community’s interests but can not spend them on his personal needs. Coin holders decide how much a particular delegate will receive for their work. It depends on the network rules and the reputation of the delegate in question. Delegate’s reputation is underpinned by the voices of individual users who, with the help of their staked coins, continuously participate in the elections. One user can give a delegate only one vote but it is also possible to vote for several candidates at once.
When delegates are elected each of them is elevated into a special group. People in this group have access to the genesis account.
This is a multi-signature account through which you can change:
- block reward;
- block generation time;
- block size;
- witnesses reward;
- transaction fees.
These parameters that are under the authority of delegates should not change too often: instability and novelty scare away newcomers and investors. Genesis account can also perform standard functions: use smart contracts, receive funds, form a stake.
After important decisions are made and before they come into force, the DPoS blockchains have a short period of time during which new delegates can be elected. This is a necessary precaution for if the new rules suggested by the delegates are not approved by the majority of users.
The number of delegates can be reduced or increased, they can be fully replaced, still, this will not affect the stability of the network.