Staking & rewards

Staking secures the network and earns a share of protocol fees. An NTX holder delegates tokens to a validator and receives rewards in proportion to their stake.

Delegation

• How. With the standard messages of the staking module from any wallet that supports the Cosmos SDK.
• Active set. It holds up to 60 validators. Only active validators and their delegators earn rewards.
• Redelegation. Tokens move to another validator at once, without waiting. The same tokens can be redelegated again after 21 days.
• Limit. No more than 7 simultaneous unbondings or redelegations for one delegator-validator pair.

Where rewards come from

• Source. Rewards are a share of trading fees and gas, not issuance.
• How they are split. The part of trading fees left after the insurance fund and referrers goes to the distribution module. 2% of it goes to the community pool, the rest to validators and delegators in proportion to stake.
• Validator commission. The validator takes it from its delegators' rewards.
• Currency. Rewards arrive in the currency that was paid: trading fees in USDC, gas in USDC or NTX.
• Yield. There is no fixed yield: rewards depend on trading volume.
• How to collect. Rewards accumulate and are withdrawn manually with MsgWithdrawDelegatorReward.

Validator commission

• Range. From 5% to 20%.
• Change. By no more than 1% per day.
• Enforcement. The protocol does not allow going outside these limits.

Unbonding

• Term. Taking tokens out of stake takes 21 days. During that time they earn no rewards and cannot be transferred.
• Slash during this period. If the validator broke the rules before the unbonding started, a slash also affects these tokens.

Risks

• Slash. A penalty on a validator also reduces the stake delegated to it. Details are in Consensus & validators.
• Jail. While a validator is jailed, no rewards accrue.