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MNDE Directed stake

How to use MNDE Directed Stake

Since July 2023, using your wallet with mSOL Directed Stake will also affect your MNDE Directed Stake. You must own locked MNDE with this wallet and start directing stake with mSOL, which applies to both.
Your wallet can only be linked to one validator, and your locked MNDE and your mSOL will count as directing stake to this same validator.
To change the validator you're directing stake to or stop directing stake overall, you must perform a SOL to mSOL transaction with any amount, selecting the new validator or just the automated delegation strategy.

MNDE Directed stake introduction

MNDE holders control 20% of Marinade's delegation strategy following a successful on-chain vote.
The control of those 20% is split between MNDE locked and used in MNDE Directed stake. This percentage is a governable parameter controlled by the DAO.
MNDE Directed stake does not allow to delegate stake to validators blacklisted for cheating with credits or changing their commission at the last minute or validators that have a commission superior to 10%. A given validator can also receive up to 10% maximum of the stake distributed by MNDE directed stake (or 2% of the total stakepool).
Due to how the Delegation strategy operates, receiving stake from Directed stake can take a few epochs.
Before MNDE Directed stake, Marinade stake was fully distributed according to the Delegation Strategy. This delegation strategy focuses on validators that decentralize the network and have good performance, which results in a good score.
Thanks to the MNDE Directed stake, it's possible for MNDE holders to select a validator that should receive some stake from Marinade for another reason other than sole score. Indeed, many validators are performing well or bringing additional benefits to the ecosystem but do not manage to get stake from Marinade, as the delegation strategy only takes score (calculated with on-chain metrics) into consideration and as the competition is rough. Let's list some examples of why a MNDE holder could want to handpick a validator that should receive more stake:
  • The validator contributes to the same communities as you
  • The validator has built free Web3 tools you've found useful
  • The validator has helped you with a DeFi or crypto question personally.
  • The validator belongs to a DAO you are a part of and want to support.
  • The validator is giving you benefits for your support.
  • You want to support the validator's high performance or commission model
  • You've noticed the validator advocates for Solana in other channels
Now that the reasons for why you would want to use MNDE directed stake are clear, let's review the purpose of this product.
First, it gives more power and utility to the MNDE token, making it more valuable.
Secondly, MNDE Directed stake allows validators to receive stake in a more sticky way, allowing them to plan for their growth more clearly.
Finally, it could also allow validators that receive more than enough stake to be profitable to lower their commission slightly and lead to a better APY for the users.

Can I cancel all my directed staked?

Yes, to cancel your directed stake, stake any amount of SOL to mSOL using the automatic delegation strategy.

Is there a tool to run simulations on MNDE directed stake?

You can use the MNDE calculator created by CogentCrypto.