What is our ‘Share’ feature?

A user’s ‘Share’ is a conversion unit that records the ratio of their contribution to a given pool. As explained in our ‘Vaults’ article, a delegator’s reward will be distributed according to their share of the amount of PHA in each StakePool/Vault.

Shares has been tracked since the launch of our ‘stake to earn’ system, however users' share metrics were not visible in PhalaApp V1. This information is now displayed via an NFT to provide greater clarity on the distribution of rewards to pool owners and delegators.

How are shares calculated?

1. Shares and unit prices

A ‘unit price’ refers to the total value of your share of PHA in a pool.

Pool share unit price = Total delegation / Total shares

The unit price is not affected by withdrawals or delegate actions. Fluctuations will only occur due to slashing and the allocation of rewards in the pool. Please note that slashing is currently not active.

When rewards are allocated, the total delegation of the pool will increase, but the shares will not change; therefore, the price of each share will rise. Similarly, a slash will cause the share price to decrease.

1. Delegations and withdrawals

Only two factors can affect shares: delegations and withdrawals.

• Multiple users can delegate to the same pool separately. When this occurs, the percentage of each user’s Share will be subject to change;

• When a delegator withdraws, the corresponding PHA will be withdrawn from the pool and transferred to the delegator based on the real-time share price.

Despite one exception, Vault shares will be issued when Vault owners receive their rewards, at which point the shares will also increase.

A user delegation in the pool = shares x unit price= initial delegate amount + rewards (If there are no withdrawals)

The table below provides a practical example of how Shares will work in practice.