What does split entrustment mean to ordinary core pledgers?

Core Network's Splitting Commitments Function

Splitting Commitments is a core function of the Core Network that allows CORE token holders to allocate their pledged tokens to multiple verifiers simultaneously without having to centralize all pledges on one verifier. This feature is launched with the Core Network upgrade version 1.0.4, allowing ordinary pledgers to more flexibly control risks and benefits without having to give up accumulated rewards when switching.

What is the spin-off commission on Core?

Prior to this upgrade, CORE holders could only delegate to one verifier at a time, and re-delegation between verifiers would entail penalties: the delegator would lose the day's rewards. Splitting commissions eliminates this restriction. Now, pledgers can delegate to one verifier first and then re-delegate part of the pledge to another verifier while continuing to earn rewards during the switching process. Core's documentation describes this feature as part of a broader effort to create a more efficient market between principals and validators, as funds can flow to better performing validators without losing rewards.

How can a spin-off commission change the pledge strategy?

Splitting pledges among multiple verifiers is optional and not mandatory. It mainly changes the calculation method of the following two types of pledgers.

Users with relatively small holdings usually have no significant impact on network dynamics relative to the total number of verifiers entrusted by them, so they can continue to choose a single verifier as long as the verifier provides a higher reward rate and a lower handling fee.

Users with large pledges now have a practical way to spread funds among multiple verifiers during the pledge cycle. They can use the mixed scoring and fee data on the Core Pledge panel to compare different options without losing a full day of rewards each time.

The following two mechanisms make this feature practical to active pledgers.

Reduce concentration risk

Concentrating a large amount of pledge on a single verifier increases the exposure of that verifier should underperform, be punished, or lose his elected seat. Splitting the delegation into two or more validators can spread this risk.

Real-time rebalancing

Since re-entrustment no longer loses the rewards of the day, the pledger can adjust part of the pledge at any time based on changing fees or mixed scores (calculated by the Core based on the validator's performance and commission computing power) without waiting for a full unpledge cycle.

Why did Core introduce spin-off commissions?

Core's Proof-of-Interest (DPoS) model relies on CORE holders to delegate tokens to verifiers, who then use these aggregated pledges to secure network security, verify transactions, and generate blocks. Prior to version 1.0.4, the single validator model with accompanying rewards and penalties discouraged proactive management because of the real cost of transferring pledges. The same upgrade also addresses the miners 'extractable value (MEV) issue on relay networks by limiting gas fee caps on relay transactions, an independent but related effort aimed at making pledge and relay infrastructure more equitable for small participants.

How does a split commission cooperate with a double pledge?

Split commissions also interact with Core's dual pledge system. Dual pledge allows holders to pledge BTC and CORE at the same time, unlocking higher Bitcoin pledge income based on the set ratio of CORE to BTC. For this specific mechanism, Core's own guidelines distinguish them based on size: Users with relatively small pledges and will not significantly change the overall distribution of verifiers are recommended to directly delegate to the verifier with the highest reward; while users with large pledges are recommended to be dispersed among multiple verifiers to avoid over-concentration and protect their reward levels. Splitting commissions is the key to putting the latter suggestion into practice.

Core Points of Core Pledge

Splitting commissions allow CORE holders to spread pledges among multiple verifiers and reallocate them without losing daily rewards. It helps achieve a more balanced risk exposure and is used in conjunction with the income hierarchy of dual pledges, allowing large holders to avoid having to bear rewards and penalties for each adjustment, thereby achieving decentralization.