Is your $LUNA in safe hands when you stake?
Here are the top 2 dangers that can affect your staking yield 👇👇
Here are the top 2 dangers that can affect your staking yield 👇👇
Danger #1: Slashing Risk
It happens when validators commit two key misbehaviors:
First is 'Downtime'
It means that a validator is unavailable to sign transactions for a certain period of time…
Which is around 17.7 hours.
The penalty for you and the validator?
It happens when validators commit two key misbehaviors:
First is 'Downtime'
It means that a validator is unavailable to sign transactions for a certain period of time…
Which is around 17.7 hours.
The penalty for you and the validator?
The validator loses 0.01% of their stake.
It could also be possibly 'jailed' for some time (It won’t participate in consensus).
What about you?
You'll simply lose all your rewards for the period.
The next one is too severe to be overlooked:
It could also be possibly 'jailed' for some time (It won’t participate in consensus).
What about you?
You'll simply lose all your rewards for the period.
The next one is too severe to be overlooked:
'Double Signing'
This occurs when a block receives two signed messages from the same validators.
Why is this bad?
Because it prevents the network from forming a consensus.
This is a crucial step to adding a new block.
That’s why the penalties are harsh as well:
This occurs when a block receives two signed messages from the same validators.
Why is this bad?
Because it prevents the network from forming a consensus.
This is a crucial step to adding a new block.
That’s why the penalties are harsh as well:
Both you and the validator will lose 5% $LUNA in addition to all your rewards.
Pro Tip:
It's essential for you to check the slashing history before staking with a validator.
On to the next risk:
Pro Tip:
It's essential for you to check the slashing history before staking with a validator.
On to the next risk:
Danger #2: Increased Validator Commission
Validators charge commission for staking on your behalf.
This isn't a bad thing.
They also depend on this commission to pay their bills.
However, some can increase their commission anytime.
Here's what it means for your rewards:
Validators charge commission for staking on your behalf.
This isn't a bad thing.
They also depend on this commission to pay their bills.
However, some can increase their commission anytime.
Here's what it means for your rewards:
If a validator increases his commission from 30% to 50%...
Your rewards drop by 20%.
For example:
If you had been receiving 10 $LUNA as rewards, now you'll receive only 8 LUNA.
So, what happens if their commission is 100%?
Your rewards drop by 20%.
For example:
If you had been receiving 10 $LUNA as rewards, now you'll receive only 8 LUNA.
So, what happens if their commission is 100%?
In that case, you only get airdrops.
No rewards at all.
Does that mean you should always go for low commission validators?
Not necessarily.
Most validators that charge zero or dirt cheap commission, do it to promote themselves.
The most important part?
No rewards at all.
Does that mean you should always go for low commission validators?
Not necessarily.
Most validators that charge zero or dirt cheap commission, do it to promote themselves.
The most important part?
At Stader, we make your life easy:
We pick and constantly monitor validators for you in our curated, top-quality validator buckets.
We take care of everything:
Checking slashing history…
Constantly reviewing commission rates…
And so much more.
So how do you start?
We pick and constantly monitor validators for you in our curated, top-quality validator buckets.
We take care of everything:
Checking slashing history…
Constantly reviewing commission rates…
And so much more.
So how do you start?
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