You can earn rewards by delegating your tokens to Data Providers. Each time a data provider submits useful information, they share their reward with you as the token holder who delegated to them, after a fee. Theoretically, you could provide your own price predictions, but, to be successful, providing data requires developing very sophisticated algorithms.
You can trust Data Providers, because they demonstrate how reliable they (and their algorithm) are by how much vote power they have. Vote power is in proportion to the quantity of tokens they hold and have delegated to them. The FTSO system uses each provider’s vote power to weight their contribution. If their submission proves accurate, they earn rewards. The more rewards they earn, the more vote power they have, and the more community acknowledgement they have for the accuracy and honesty of their data.
As data providers grow stronger from delegation, they can share more rewards with you. In addition, delegation strengthens the entire ecosystem by supporting reliable data providers. As you earn rewards from delegating, you can reinvest them to compound your rewards.
How do you delegate?
To delegate, you first wrap your native tokens (FLR or SGB) into WFLR or WSGB, because they are more interoperable than native tokens. Wrapped tokens have a 1:1 conversion to native tokens. Remember to keep some tokens unwrapped to pay gas fees.
Next, you will select one or two Data Providers and the percentage of your total tokens that you want to delegate to them. At flaremetrics.io, you can find a list of data providers and their vote power to help you make your selection.
For the simplest way of delegating, go to flaremetrics.io. Then click into each data provider and their website (on the right) to see what apps they may offer or learn how to delegate manually at Manual Delegation and Claiming.
What happens as a result of delegation?
Data Providers submit price information, such as the price of a token in USD. The FTSO system calculates the resulting price by averaging the submissions from all data providers, weighted by their voting power, which your delegation influences.
Your rewards accumulate in the Reward Manager and become claimable for each finalized reward epoch (7 days on Songbird and 3.5 days on Flare). They expire after 90 days. For the simplest way of claiming, go to flaremetrics.io. Then click into each data provider and their website (on the right) to see what apps they may offer or learn how to claim manually at Manual Delegation and Claiming.