The budget allocated to a Ranked Delegate (RD) is modified based on their voting-activity metrics over the past six (6) months. This budget modification takes into account the overall participation of the Ranked Delegate in all votes they are eligible to cast as an Aligned Delegate (AD). For Executive Votes, a vote counts toward this participation only where the Ranked Delegate casts it within the period specified in Vote Timeliness.
If an RD participates in less than 95% of all eligible votes within the last six (6) months, their RD budget is reduced. The reduction is applied on a proportional linear scale: for every percentage point below 95% voting activity, the RD's budget is reduced correspondingly.
Should an RD's voting activity fall to 75% of all eligible votes within the last six (6) months, they become completely ineligible to receive RD income. If the RD is a Level 3 Ranked Delegate, their RD rank, and the budget eligibility associated with that rank, is transferred to the next highest-ranking AD, as determined by total amount of SKY delegated to their Delegate Contract.