Now that you have some BGT, it's time to put it to use.
After acquiring BGT, users delegate it to validators on the network. A validator's BGT stake weight is used to determine two things:
- How many blocks a validator produces out of all validators
- What % of future BGT emissions they can set with their votes
What Else Can I Do With BGT?
If you're not interested in delegating BGT to earn rewards, you can always burn BGT for BERA.
Please note, burning BGT for BERA is a one-way function. There is no way to get BGT back once you've burned it.
Berachef Staked BGT Weight
First, the amount of BGT inflation a validator has control over is determined by the amount of BGT delegated to them.
As we walk through the examples in these docs, let's assume you are a validator with 4% of all staked BGT delegated to them.
Since you have 4% of BGT staked towards you, you're basically controlling where 4% of future BGT inflation is directed. Specifically, this BGT inflation is directed towards native BEX liquidity pools meaning you're determining which LP pools are incentivized for users to deposit tokens into, generally leading towards deeper liquidity for those pools.
Creating a breakdown of which LP pools receive the future BGT inflation is called creating a Cutting Board.
You can choose to split up your Berachef weights many different ways. You could have:
- 1 LP pool receive 100% of your BGT inflation emissions
- Any number of LP pools each receive any % of your BGT inflation emissions (adding up to 100%)
For example, let's say you direct:
- 75% of your BGT inflation to BERA/HONEY
- 25% of your BGT inflation to USDT/HONEY
This would essentially be directing:
- 3% of total BGT inflation to BERA/HONEY
- 1% of total BGT inflation to USDT/HONEY
The actual numbers will fluctuate as part of implementation but will statistically approximate the true weight of the validator over time.
This is because, on a technical level, the BGT is minted to these pools when the validator produces the block. Blocks will always be producing BGT at the same network-determined rate. This means that if staked BGT never changed, you would eventually produce about 4% of blocks and therefore direct 4% of total BGT inflation emissions.
In addition to the technical details, BGT delegations can always change so while a validator may have 4% today, they may not have 4% tomorrow.