Staking

What is staking?

Staking is the process of locking up a digital asset (Bitgold) to provide economic security for a public blockchain.
Help secure the openverse network and earn rewards

Staking purpose

Secure the network: With Bitgold, you have the superpower to contribute to the security and governance of the openverse network.
Earn rewards: Select one or more validators of the openverse network and start earning crypto assets.
Vote for the future: Staking Bitgold grants the right to vote on proposals and make decisions on the future of the network.

Staking rewards

When the staking transaction is complete, rewards will start to be generated immediately. At any time, stakers can send a transaction to claim their accumulated rewards, using a wallet.
Staking rewards are generated and distributed to staked Bitgold holders in two ways:
Transaction fees: The native asset token BITGOLD are mint, and the transaction fees Bitgold collected on the Openverse Network are distributed to staked Bitgold holders.
Newly created Bitgold: The total supply of Bitgold is inflated to reward stakers. Bitgold holders that do not stake do not receive rewards, meaning their Bitgold get diluted over time.The yearly inflation rate of Bitgold is available on most explorers.

Staking safety

Staking Bitgold earns significant rewards but is not risk-free. Bitgold delegated to a validator can be partially slashed if the validator misbehaves. Slashing means the delegated Bitgold are forfeited (burned) without the possibility of recovery. On the Openverse Network, two attributable faults can lead to slashing events for the delegated Bitgold:
Slashing by 0.01% can occur if the validator is offline for too long. Uptime is achieved when the validator signs at least 500 out of the last 10.000 blocks. If a validator does not sign minimum 500 blocks out of the last 10.000, a downtime slash occurs.
Slashing by 5% can occur if the validator signs two different blocks at the same height (double-signing). This fault is harder to anticipate, resulting from bad operation practices or outright malicious intent from the validator operator.
When you delegate your Bitgold to a validator, select a trusted validator to prevent slashing from these faults.