What are staking vaults?

What are Staking Vaults? (Validator Vaults)

Staking Vaults is a new process that allows a DIVI Coin Owner to stake their coins with a greater degree of convenience while maintaining sovereignty, autonomy, and security over their coins. Typically, staking is done by running and managing a computer that supports a consistent, stable internet connection. This computer runs the Divi Blockchain software; an example of this would be the Divi Desktop application. 

Turn your computer OFF!

Staking Vaults is an open-sourced methodology that enables virtually any capable third party to participate as a Staking Manager “Manager.” Staking Vaults enable a Coin Owner to turn their computer off after utilizing the Staking Vault protocol and accrue the same benefits as being a Staker by delegating the staking task to a Manager.

You maintain full ownership! 

Managers are not delegated coins, and they are not locked or placed in a smart contract. The staking vault protocol splits the responsibilities of staking and spending and assigns them to separate keys. Only the staking key can stake, and only the spending key can spend.

As stated above, a Manager never receives ownership of the stakes; The Coin Owner always maintains ownership and possession. The Manager uses a staking key to verify the coins on the protocol. The protocol running on the Manager’s computer uses them for work, exactly as it would staking on the coin owner's personal computer.

And because a Manager never possesses the coin owner’s coins, the Divi Blockchain rewards the Coin Owner and not the Manager. Coin Owners maintain control over their assets and can revoke a staking key at any time by simply spending or moving their coins out of the vault.

What about Staking Managers?

A Staking Manager will incur expenses as part of their operations, including maintaining a computer running the Divi Blockchain application in an always-on, always internet-connected status. A Staking Manager will typically charge a fee to the Coin Owner for providing this service. Additionally, an individual with the appropriate knowledge can act as both the Staking Manager and Coin Owner, thereby eliminating an intermediary, altogether.

More about Validators and Staking