Due to the self-bond requirements specified in the Tezos protocol, we are restricted in the amount of Tezzies we can accept in delegations. To manage over-delegation, we will stop considering new delegations when our staking balance exceeds a certain threshold, which we communicate on several platforms. Please check our delegation status on this website before delegating to us.
Continued over-delegation has caused us some headache recently. Although on the one hand we highly appreciate that delegators choose us as their baker, on the other over-delegation incurs high costs, particularly due to the need to buy additional Tezzies at market price to cover bonds. Hence, over-delegation quickly drains financial reserves of bakers, which already caused some big bakers decide to cease operation.
We do not consider over-delegation as ill intention or selfishness, but rather as a result of a lack of awareness. Even though we exclude all delegations made after we announced over-delegation, affected delegators can still claim their rewards by simply contacting us. We keep, however, 50% of these rewards as compensation for the costs over-delegation incurs. Although this may seem to be high, it does not even cover a fraction of the costs of over-delegation.