What is Delegation?
Introduced in Hard Fork 18, Steemit allows you to let someone else borrow your Steem Power. Delegating Steem Power is completely safe and risk-free as you can undelegate anytime and get back your delegated Steem Power (SP) after a cool-down period of 7 days. Below are some of the major rules of delegation as laid forward by Steemit:
Delegator– The person who owns the Steem Power and is willing to delegate his SP to any particular delegatee.
Delegatee– The person who borrows Steem Power from a delegator.
- As soon as you delegate SP, the vote value of that delegated SP gets immediately transferred from the delegator to the delegatee. Also, the curation rewards from those votes will be earned by the delegatee.
- You can only delegate SP you own, not SP delegated to you.
- Delegators can cancel their delegation at any time but they will get back their SP only after a cool-down period of 7 days. The 7 day cool-down period is to avoid double voting with the same SP.
- Delegated SP cannot be powered down and powered down SP cannot be delegated.
Delegation is a very good form of passive investment. Usually, delegators delegate their SP to some trusted bid-bots which in return pay daily interest to delegators for their delegated SP.
How to increase, decrease or undelegate your existing delegation?
In order to increase your existing delegation to a particular delegatee, you should enter the SP amount already delegated to that delegatee PLUS the amount of SP that you want to delegate more.
In order to decrease your existing delegation to a particular delegatee, you should enter only the SP amount which you want to delegate to your delegatee.
In order to undelegate your existing delegation to a particular delegatee, you should enter 0 in the amount field.
Eg: Suppose Adam owns 1000 SP and delegates 600 SP to Eve. Now, Adam wants to increase his delegation by delegating 200 SP more to Eve. So Adam should enter 800 (600+200) in the amount field and not 200. Similarly if Adam wants to decrease his delegation to 100 SP then he should enter 100 in the amount field.