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🔐 Aztec Delegator Guide

Node briefing

Aztec Delegation

Delegate your AZTEC tokens to sequencers and earn staking rewards without running any infrastructure. Perfect for token holders who want passive income without the complexity of node operations.

NetworkMainnet
Setup time10-15 minutes
Difficulty🟡 Medium

System checklist

Hardware
None required
Software
Web browser only
Network
Internet connection

Launch prerequisites

  • AZTEC tokens (any amount)
  • ETH for gas fees (~$5-10)
  • EVM wallet (MetaMask, etc.)

Key features

  • Zero infrastructure required - purely economic participation
  • Earn APY from sequencer rewards
  • Non-custodial - you retain control of your tokens
  • Support network decentralization
Best Entry Point

If you don't have 200,000 AZTEC tokens for running a sequencer, delegation is your path to earning rewards while supporting the network.

🎯 What is Delegation?​

Delegation allows you to stake your AZTEC tokens with an existing sequencer without running any infrastructure yourself.

How It Works​

You (Delegator)          Sequencer Operator           Network
      │                        │                        │
      │── Delegate tokens ────►│                        │
      │                        │── Validates blocks ───►│
      │                        │◄── Block rewards ──────│
      │◄── Your share ─────────│                        │
  1. You delegate tokens to a sequencer of your choice
  2. Sequencer validates blocks using combined stake
  3. Rewards are distributed proportionally to all delegators
  4. You can undelegate at any time (subject to unbonding period)

Key Benefits​

BenefitDescription
Zero maintenanceNo servers, no updates, no monitoring
Low barrierAny amount of AZTEC tokens works
Non-custodialYou control your tokens via smart contract
Passive incomeEarn rewards automatically
FlexibilitySwitch sequencers or undelegate anytime

💰 Understanding Rewards​

Reward Sources​

Sequencers earn rewards from:

  • Block production - Fees from transactions included in blocks
  • Attestation rewards - Participating in consensus
  • MEV - Maximal Extractable Value (if applicable)

Your Share​

As a delegator, you receive a percentage of the sequencer's rewards:

Your Rewards = (Your Stake / Total Sequencer Stake) × Sequencer Rewards × (1 - Commission)

Example:

  • You delegate: 10,000 AZTEC
  • Total sequencer stake: 500,000 AZTEC (including 200k self-stake + delegations)
  • Your share: 10,000 / 500,000 = 2%
  • Sequencer earns: 1,000 AZTEC/month
  • Commission: 10%
  • Your rewards: 1,000 × 2% × 90% = 18 AZTEC/month

Commission Rates​

Sequencers set their own commission rates (typically 5-20%). Lower commission = more rewards for you, but consider:

  • Sequencer reputation and uptime
  • Track record of consistent rewards
  • Community involvement

🔍 Choosing a Sequencer​

What to Look For​

FactorWhy It Matters
UptimeHigher uptime = more block rewards
CommissionLower = better, but not the only factor
Self-stakeHigher self-stake = more skin in the game
Track recordConsistent performance over time
CommunityActive, responsive operator

Red Flags​

  • 🚩 Very low commission (unsustainable, may increase later)
  • 🚩 No self-stake beyond minimum
  • 🚩 Frequent downtime or slashing events
  • 🚩 Unresponsive to delegator questions
  • 🚩 Anonymous operator with no track record

Where to Find Sequencer Info​

📝 Step-by-Step Delegation​

Step 1: Prepare Your Wallet​

  1. Install MetaMask (or your preferred EVM wallet)
  2. Add Ethereum Mainnet (should be default)
  3. Ensure you have:
    • AZTEC tokens you want to delegate
    • Small amount of ETH for gas (~0.01 ETH)

Step 2: Access Staking Dashboard​

  1. Go to https://staking.aztec.network
  2. Click "Connect Wallet"
  3. Approve the connection in your wallet

Step 3: Browse Sequencers​

  1. Navigate to "Validators" or "Sequencers" section
  2. Review available sequencers:
    • Commission rate
    • Total stake
    • Uptime percentage
    • Active delegators

Step 4: Delegate Your Tokens​

  1. Select a sequencer you want to delegate to
  2. Click "Delegate"
  3. Enter amount of AZTEC tokens
  4. Review transaction details:
    • Delegation amount
    • Estimated gas fee
    • Sequencer address
  5. Confirm transaction in your wallet
  6. Wait for confirmation (usually 1-2 minutes)

Step 5: Verify Delegation​

After confirmation:

  1. Return to dashboard
  2. Check "My Delegations" section
  3. Verify your delegation appears with correct amount

📊 Managing Your Delegation​

View Your Rewards​

On the staking dashboard:

  • Pending rewards - Accumulated, not yet claimed
  • Claimed rewards - Already withdrawn to wallet
  • Estimated APY - Current annualized return

Claim Rewards​

  1. Go to "My Delegations"
  2. Click "Claim Rewards"
  3. Confirm gas transaction
  4. Rewards sent to your wallet
Compound Strategy

Consider re-delegating claimed rewards to compound your returns over time.

Add More Delegation​

  1. Select your existing delegation
  2. Click "Add Stake"
  3. Enter additional amount
  4. Confirm transaction

Switch Sequencers​

If you want to move delegation to a different sequencer:

  1. Undelegate from current sequencer
  2. Wait for unbonding period (check current duration)
  3. Delegate to new sequencer
Unbonding Period

There may be an unbonding period during which your tokens are locked and not earning rewards. Plan accordingly.

Undelegate (Withdraw)​

  1. Go to "My Delegations"
  2. Click "Undelegate"
  3. Enter amount to withdraw
  4. Confirm transaction
  5. Wait for unbonding period
  6. Claim tokens after unbonding

⚠️ Risks and Considerations​

Slashing Risk​

If the sequencer you delegate to gets slashed (penalized for misbehavior), your delegation may also be affected.

Mitigations:

  • Choose reputable sequencers with good track records
  • Diversify across multiple sequencers
  • Monitor sequencer performance

Opportunity Cost​

While delegated, your tokens are locked and cannot be:

  • Traded on exchanges
  • Used in DeFi protocols
  • Transferred to other wallets

Smart Contract Risk​

Delegation involves interacting with smart contracts. While audited, there's always residual risk.

Market Risk​

AZTEC token value may fluctuate. Rewards are paid in AZTEC tokens.

🔄 Delegation vs Running a Node​

AspectDelegatorSequencer Operator
Minimum stakeAny amount200,000 AZTEC
HardwareNone8 CPU, 16GB RAM, 1TB NVMe
MaintenanceNone24/7 monitoring required
Gas costsDelegation tx only20-60$/month ongoing
RewardsShare of sequencer rewardsFull block rewards minus commission
Technical skillBeginnerAdvanced
Time commitmentMinutes/monthHours/week

Choose Delegation if:

  • You have less than 200k AZTEC
  • You don't want technical complexity
  • You prefer passive income
  • You don't have suitable hardware

Choose Sequencer if:

  • You have 200k+ AZTEC
  • You have technical skills and infrastructure
  • You want maximum rewards
  • You want to actively support the network

❓ FAQ​

How much can I earn?​

APY varies based on network activity, total stake, and sequencer performance. Check the staking dashboard for current estimates.

Is there a minimum delegation?​

Generally no minimum, but very small amounts may not be economical after gas fees.

Can I delegate to multiple sequencers?​

Yes! Diversifying across sequencers reduces risk and can optimize returns.

What happens if my sequencer goes offline?​

You stop earning rewards during downtime. Consider switching to a more reliable sequencer.

Are rewards automatically compounded?​

No, you need to manually claim and re-delegate to compound.

How long is the unbonding period?​

Check the current network parameters on the staking dashboard. This may change over time.

🔗 Useful Resources​

Community​

Explorers​

🎯 Next Steps​

  1. Research sequencers on the staking dashboard
  2. Start small - delegate a test amount first
  3. Monitor performance for a few weeks
  4. Increase delegation once comfortable
  5. Join Discord for community insights

Welcome to the Aztec ecosystem! By delegating, you're supporting network decentralization while earning passive rewards. 🔮

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