III.II.VII Delegation

Both POWER and ZERO owners may delegate their voting power to an arbitrary Ethereum address during the Transfer Epoch. Delegated POWER will retain its inflation in the owner address, while ZERO rewards will be claimable by the delegate address.

Owning ZERO does not earn the owner or the owner’s delegate inflation or rewards aside from M generated by the protocol fees, and thus delegation does not have any impact on the owner outside of transferring voting power. ZERO does earn fees from Proposal Fees on failed Standard Proposals, the payments from POWER token auctions and a portion of Minter Rate and Penalty Rate charges to Minters.

Delegation snapshots are taken at the beginning of the epoch and close at the end of the epoch, and the values in the snapshots are subject to change until the epoch closes. Both POWER and ZERO follow the ERC20 standard and holders must call the Delegate method and provide the address they wish to delegate to. For holders that do not actively Delegate, the default delegation is set to the address which owns the tokens. Users do not need to alter their delegation in each epoch unless they wish to change delegates.