# Delegations and Validator Shares

In order to reduce the cost of updating delegation and validator ownership of staked coins whenever slashing and `TakeRate`

deductions are performed, the concept of shares is used. Similar to the shares implementation of the Cosmos `x/staking`

module, shares are used to keep track of validator assets as proportions of a whole, rather than individual coin balances per account.

Conversions between coins and shares use the following formula:

Whenever coins are deducted after applying the take rate, only `Asset.TotalTokens`

needs to be updated. All delegation shares will accordingly claim a smaller pool of coins, effectively reducing the total across all delegations proportionally.

When a validator is slashed, their coin totals are not directly slashed. Instead, the validatorâ€™s shares are slashed, causing the offending validator to claim a smaller share of the pool. This process effectively distributes the slashed coins proportionally to other non-offending validators.

To calculate the coins staked by a delegator, a two-step formula is used. The first step determines the total coins owned by the validator by multiplying the total amount of coins by the ratio of a validatorâ€™s shares over the total number of shares.

To determine the amount of coins a delegator owns, the delegation shares are multiplied by the total amount of validator coins, divided by the total amount of validator shares.