Delegate Compensation

What is delegate compensation?

Delegate compensation programs are designed to reward active participants in governance for time, expertise, and contributions. Compensation mechanisms encourage thoughtful participation while reducing voting power concentration among a few large holders. Systems include requirements to ensure only engaged and accountable delegates are rewarded, such as maintaining a minimum reputation score or meeting participation thresholds.

Delegate compensation is currently live for The OBOL Collective.

OBOL delegate compensation

The Obol delegate compensation mechanism distributes 165,000 OBOL tokens over 6 months to active delegates, proportional to the square root of their voting power. This incentivizes participation while reducing centralization advantages.

Key Requirements:

• Maintain DRS (Delegate Reputation Score) ≥65% to be eligible

• Rewards stream continuously and can be claimed at any time

How to Claim Compensation

1. Check Eligibility

   • Ensure your DRS is ≥65% (visible on the delegate profile)

2. View Accrued Compensation

   • Check unclaimed rewards on the profile page

   • Compensation accrues continuously while eligibility is maintained

3. Claim OBOL

   • Click the claim button

   • Confirm the transaction

   • No minimum claim amount required

Technical Reference

Smart Contract Functions

function claimReward(DepositIdentifier _depositId) external returns (uint256)

Check Unclaimed Balance

function unclaimedReward(DepositIdentifier _depositId) external view returns (uint256)

Verify Delegate Eligibility

function isDelegateeEligible(address _delegatee) external view returns (bool)

Compensation Calculation

Rewards are distributed proportionally based on:

delegate_share = √(voting_power)

The square root function uses OpenZeppelin's Math library for precision and reliability.

Important Details

• Gas Costs: Similar to standard Staker reward claims

• Eligibility Loss: If DRS drops below 65%, earning power is removed (same as Staker)

• Oracle Updates: Voting power snapshots update every 3 weeks

• Fallback: If oracle becomes stale or is paused, system reverts to pure √voting power calculation

Contract Architecture

The delegate compensation system is implemented as a Staker contract with custom earning power calculation:

• Uses ObolBinaryVotingWeightEarningPowerCalculator.sol

• Integrates with DRS oracle for eligibility verification

• Maintains same security model as main Staker system