How to Delegate to More Than Two Data Providers

[brianwalden]

Somebody posted that there's a way to make a new wallet that delegates votes to multiple providers in fixed amounts, but I don't think that's really feasible for most people unless you're going to update your delegation every time your balance changes. But I think I've figured out a relatively simple way to do it so that you'll always be using your full WSGB balance to vote. This post is speculative, I have no way to test it out at this point in time.

Did you know that you don't have to vote for a data provider directly. You can vote for another wallet, which is basically saying, "I want to vote for who that guy votes for". Practically speaking, I don't think there's a way to do this yet unless you're going to compose and submit a transaction yourself, but maybe our favorite data provider could add the ability to delegate to a custom address to their very handy and easy to use web app.

So my idea is to create as many extra wallets as you need. Each wallet will contain 1 SGB (to be used for fees) and 1 WSGB. So lets say I want to delegate to 4 data providers. Here's how I'd set it up.

MAIN WALLET (contains 1000 SGB): 25% to FTSO_A and 75% to my secondary wallet
SECONDARY WALLET (contains 1 SGB): 33% to FTSO_B and 67% to my tertiary wallet
TERTIARY WALLET (contains 1 SGB): 50% to FTSO_C and 50% to FTSO_D

This should result in:
250 votes to FTSO_A (all from the main wallet)
247.83 votes to FTSO_B (247.5 from the main wallet and .33 from the secondary wallet)
252.085 votes to FTSO_C (251.585 from the secondary wallet and .5 from the tertiary wallet)
252.085 votes to FTSO_D (251.585 from the secondary wallet and .5 from the tertiary wallet)

You get approximately 25% of the vote for each of the four FTSOs and almost all of the rewards can be claimed from the main wallet - you might not even worry about claiming the rewards that the secondary wallets earn from their 1 WSGB each.

[brianwalden]

Does Flare have some kind of logic to prevent an infinite loop? What happens if Alice votes for Bob and Bob votes for Alice?

I've had this same question about hooks on the XRPL. What happens if Alice makes a rule to send any incoming XRP to Bob and Bob makes a rule to send any incoming XRP to Alice?

[brianwalden]

Oh man, I could set this up as a service that anyone could use. Let's say we make the top ten validator list. I could get the eight extra wallets all set up to delegate approximately 10% to each validator. Then anyone who wants to use it would just delegate 10% to FTSO_AU and 90% to the first wallet in the series. There's little risk, the most I could do to screw you over is change how the wallets vote - I don't think there's any way your funds could be at risk.

[Seoulite]

 

[Seoulite]

The question for me is: is there any advantage to delegating to more signal providers?

[brianwalden]

3 hours ago, Seoulite said:

The question for me is: is there any advantage to delegating to more signal providers?

If they're all going to perform fairly well, then diversifying is like taking the index fund strategy. You're just trying to collect the average reward and prevent yourself being impacted too much if one of them has a bad week and their servers go down or something.

You're probably fine just picking one and sticking with it. I mostly just like the problem solving aspect of it.

[Seoulite]

3 minutes ago, brianwalden said:

If they're all going to perform fairly well, then diversifying is like taking the index fund strategy. You're just trying to collect the average reward and prevent yourself being impacted too much if one of them has a bad week and their servers go down or something.

You're probably fine just picking one and sticking with it. I mostly just like the problem solving aspect of it.

I agree, I said in a post on the main forum that opportunities to game the market through problem solving and math will come in things like Flare Finance.

[brianwalden]

12 minutes ago, Seoulite said:

I agree, I said in a post on the main forum that opportunities to game the market through problem solving and math will come in things like Flare Finance.

Yeah in my experience, staking works pretty much the same way. If you pick one of the good, reliable ones, they're all about the same.

On the other hand, the bigger thing is how much rewards actually get paid out. We could get huge rewards early on if only a few exchanges distribute SGB.

[Seoulite]

1 minute ago, brianwalden said:

On the other hand, the bigger thing is how much rewards actually get paid out. We could get huge rewards early on if only a few exchanges distribute SGB.

Given that the songbird roll out has given people plenty of chance to get set up, I think the participation is decent for those of us who actually got the tokens, but as you say the unknown is how many others won’t be getting their tokens, and what are exchanges doing with them otherwise?