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# Delegation Strategy

How are validators chosen and included in the BlazeStake pool?

## What is our goal for selecting validators?

BlazeStake aims to strike the right balance between high-rewarding validators, high-scoring validators, and smaller validators to ensure that we can help decentralize the network without sacrificing on staking rewards. All of our validators are hand-picked and evaluated by real humans and not just selected by algorithms that might not understand the whole picture.

## What is the security group?

The security group refers to the group of 30 validators that control greater than 33% of the staked SOL. If these 30 validators hypothetically colluded (which they are heavily disincentivized from doing), they would not be able to submit fake transactions, but they would be able to stop new transactions from being approved (since new transactions require at least 2/3 of the stake to agree).
Given that these 30 validators are already heavily established and have a high amount of SOL staked to them, we do not add them to our stake pool.
Any validator that is not within the security group is instantly pre-qualified to join our stake pool as long as it follows our guidelines.

## What is the stake coefficient and base stake amount?

In the BlazeStake pool, each validator is assigned a stake coefficient based on its reward amount, performance, and how it contributes to the decentralization of the network. The next sections on this page detail in depth how the stake coefficient is determined for each validator. The base stake amount is a dynamic value that changes based on the sum of the stake coefficients and the total amount of SOL staked to the pool.
The amount of SOL staked to each validator is determined using the following simple function:
$s(v) = c(v)*b(s,t)$
where s represents the staked amount, v represents the validator, b represents the function to determine the base stake amount (based on the sum s of the stake coefficients and the total staked amount t), and c represents the function to determine the stake coefficient based on the validator.
The base stake amount is determined using another simple function:
$b(s,t)=0.995t/s$
99.5% of the total staked SOL is used in this calculation, since the other 0.5% is held in the stake pool reserves and is used for instant (liquid) unstaking.

## How is the stake coefficient calculated for high-rewarding validators?

The top 50 validators with the highest APY according to stakeview.app are included in the stake pool with the following guidelines:
1. 1.
If the validator has the top APY, their stake coefficient increases by 12500.
2. 2.
If the validator has the second highest APY, their stake coefficient increases by 8750.
3. 3.
If the validator has the third highest APY, their stake coefficient increases by 5000.
4. 4.
If the validator is in the top 4-5, their stake coefficient increases by 4000.
5. 5.
If the validator is in the top 6-10, their stake coefficient increases by 3000.
6. 6.
If the validator is in the top 11-15, their stake coefficient increases by 2000.
7. 7.
If the validator is in the top 16-20, their stake coefficient increases by 1500.
8. 8.
If the validator is in the top 21-25, their stake coefficient increases by 1250.
9. 9.
If the validator is in the top 26-30, their stake coefficient increases by 1000.
10. 10.
If the validator is in the top 31-35, their stake coefficient increases by 750.
11. 11.
If the validator is in the top 36-50, their stake coefficient increases by 500.
12. 12.
If the validator is in the top 51-75, their stake coefficient increases by 250.
13. 13.
If the validator is in the top 76-100, their stake coefficient increases by 100.

## How is the stake coefficient calculated for high-scoring validators?

The top 50 validators with the highest scores according to validators.app and stakewiz.com are included in the stake pool with the following guidelines:
1. 1.
If the validator is in the top 50 on validators.app and not in the security group, their stake coefficient increases by 125 (with an added bonus increase of 10 if the validator is in the top 25).
2. 2.
If the validator is in the top 50 on stakewiz.com and not in the security group, their stake coefficient increases by 125 (with an added bonus increase of 10 if the validator is in the top 25).
3. 3.
If the validator is in the top 50 on both validators.app and stakewiz.com and not in the security group, their stake coefficient increases by 50 on top of any increases detailed by guidelines 1 and 2.

## How is the stake coefficient calculated for smaller validators?

If the validator does not satisfy any of the previous guidelines and is outside the security group, their stake coefficient increases by 90, provided they follow all of the following rules:
1. 1.
Skipped slot rate must be less than 10%.
2. 2.
Voting success rate must be at least 80%.
3. 3.
Commission must be no greater than 6%.
If the validator does not satisfy the above guidelines but does satisfy the following guidelines, their stake coefficient increases by 85 instead:
1. 1.
Skipped slot rate must be less than 20%.
2. 2.
Voting success rate must be at least 70%.
3. 3.
Commission must be no greater than 8%.
If the validator does not satisfy the above guidelines but does satisfy the following guidelines, their stake coefficient increases by 80 instead:
1. 1.
Skipped slot rate must be less than 30%.
2. 2.
Voting success rate must be at least 60%.
3. 3.
Commission must be no greater than 10%.
If the validator does not satisfy the above guidelines, their stake coefficient increases by 75 instead, provided that the validator is not delinquent and has a commission of no more than 10%.

## Is there any human component to the review process?

While some parts of the stake coefficient calculation may be automated, all of the validators are reviewed by humans for suspicious or malicious activity.

## Can stakers decide validators?

Of course! Anyone who stakes with the BlazeStake pool will be able to suggest validators to be added to the pool or give feedback on the delegation strategy, and we will also be launching a DAO to allow stakers to vote on which validators should get bonuses for their stake coefficient.