Staking

Openverse Network > Staking

What is staking?

Staking is the process of locking digital assets — in the case of Openverse Network, Bitgold — to provide economic security for the public blockchain. By helping to secure the Openverse Network, participants are eligible to earn rewards.

Staking Purpose

Network Security: By staking Bitgold (BTG), you contribute to the security and governance of the Openverse Network.

Earn Rewards: Select one or more validator nodes within the Openverse Network to start earning crypto rewards.

Vote for the Future: Short-term staking of BTG grants you voting rights on proposals, empowering you to help shape the future of the network.

Staking Rewards

Once a staking transaction is completed, the staking order will begin generating Bitgold rewards in the following epoch, and the rewards will be automatically settled to the staking account in the epoch after that. At any time, staking holders can initiate a transaction using their wallet to claim their accumulated rewards.

Staking rewards are generated and distributed to Bitgold holders with active stakes through two mechanisms:

  • Transaction Fees:Fees collected on the Openverse Network are distributed to Bitgold holders who have staked their assets.
  • Newly Minted BTG:Each block generates new BTG, which is distributed as rewards to stakers. Bitgold holders who do not participate in staking are not eligible for these rewards. Most stakers can expect to receive rewards corresponding to the network’s annual BTG inflation rate.

Staking Security

Staking Bitgold offers attractive returns, but it is not without risks. If a validator node behaves improperly, the Bitgold delegated to that validator may be subject to partial slashing. Slashing means that the delegated Bitgold is forfeited (burned) and cannot be recovered. On the Openverse Network, there are two identifiable scenarios that could result in significant slashing of delegated Bitgold:

If the validator node remains offline for too long, it may result in a 0.01% risk of failure. Normal uptime is achieved when the validator node signs at least 500 out of the last 10,000 blocks. If the validator node fails to sign at least 500 blocks from the last 10,000, downtime will be significantly reduced.

If a validator node signs two different blocks at the same height (a double-signing), a 5% crash may occur. This type of failure is difficult to predict and is caused either by improper operational practices or malicious intent from the validator node operator.

When delegating Bitgold to a validator, it is essential to choose a trustworthy validator node to mitigate the risk of significant losses due to these types of failures.