Proxy Accounts

An account can authorize another account to sign extrinsic calls made to specific pallets on its behalf. We call these authorized accounts Proxy Accounts. These can be created to interact with the different pallets involved in staking such as staking, session and utility pallets.

Proxies serve as efficient delegates and enhance security by allowing tasks to be completed through smaller, specialized accounts rather than a main account. This minimizes the need for frequent transactions in the main account, adding a layer of security. Proxies can be more active while the main account remains less active ("cold"), utilizing the cold account's token weight.

Proxy types

Proxy accounts can be set up to have a defined set of permissions. For example, staking proxies have permission to do only staking-related transactions.

When you set a proxy, you must choose a type:

• Any: allow any transaction, including balance transfers. In most cases, this should be avoided as the proxy account is used more frequently than the cold account and is therefore less secure.

• Non-transfer: allow any type of transaction except balance transfers. Hence, this proxy does not have permission to access calls in the Balances and XCM pallet.

• Staking: allow all staking-related transactions. The stash account is meant to stay in cold storage, while the staking proxy account makes day-to-day transactions like setting session keys or deciding which validators to nominate.

Proxy account tools

• Creditcoin CLI: the CLI bundled in the Creditcoin Docker image allows setting staking proxies for managing Nominators and Validators.