What is staking?

Staking is the act of locking up a cryptocurrency to receive rewards. It helps verify network transactions and secure the operations of a blockchain network using the Proof of Stake consensus mechanism.

Read more

Unlike the traditional Proof of Work consensus mechanism, where transactions are verified by nodes or miners solving complex puzzles, requiring significant computational power, Proof of Stake blockchains use staking as the core mechanism to keep the network running securely, by appointing validators to propose blocks depending on the amount staked on them. 

Staking in Cudos can happen directly, via validators, or by anyone in the form of delegation to those validators.

The CUDOS are ‘at stake’ allowing the network to self correct and penalise any minority attempts to defraud the chain (by altering or censoring transactions).

Become a delegator
Become a validator

How to benefit from staking

The network’s health depends on your help as a Validator or staker. You help us identify dangerous
or harmful behaviours early. To say thank you, we give you standard and one-off additional rewards:

You earn staking rewards for your crypto-economic contributions to the network over time.

Learn more

You earn a commission on the stake delegated through you (if you are a Validator).

Learn more

You can earn through delegated staking even if you are not a Validator.

Learn more

You earn gas fees.

Learn more

Where do the rewards come from?

Staking rewards, in the form of additional CUDOS, are distributed to delegators and validators based on the percentage of CUDOS staked. They come from our network’s emission schedule, which follows a curve over time up until we reach the maximum token supply of 10 billion CUDOS, ~10 years after the initial CUDOS launch.

Read more

Validators additionally receive a cut of CUDOS delegated via their node and charge on average a 5-10% commission to any delegators.

Rewards are also allocated to stakers for each block containing transactions, this transaction fee is paid by the users of the network as a ‘gas fee’. As we roll out compute products there will be more utilisation of the chain and hence more rewards available to validators.

Staking & security

For all Proof of Stake networks, and so also for the ones built using the Cosmos SDK such as the Cudos Network, when a validator goes offline for an extended period of time or behaves in an abnormal way, it is punished for that behaviour with a percentage of its tokens, and the tokens of all its delegators. This is a protocol-level feature needed to ensure the security and health of the network. Delegators can, at any time, redelegate their tokens to another validator though, in order to mitigate any further slashing events, or to optimise their staking strategy.

Read more

When choosing a validator to delegate your stake to, you can filter by the condition of the server’s uptime and reliability, and the percentage of commission. There are many reputable validators operating across the blockchain ecosystem and we encourage delegators to do their own research on their options before selecting a node to delegate stake to.

Stake Now

How do you stake?

1

In order to stake on the Cudos network you will need to first purchase native CUDOS. Please see our Get CUDOS page for more details. You will also need to set up a Keplr wallet to send and receive native CUDOS, as well as to connect to the CUDOS dashboard. Find out how to set up a Keplr wallet here.

Get Cudos
2

Once you have your CUDOS, navigate back to www.dashboard.cudos.org and click ‘connect Keplr wallet’. Login to your Keplr wallet using the Keplr browser extension you setup earlier.

Cudos Dashboard
3

You will need to send your CUDOS balance from AscendEX to your CUDOS wallet address. To make sure you have your CUDOS funds in your wallet check the Keplr browser extension and select the CudosNetwork.

4

Navigate back to the Cudos Dashboard and from the side menu on the left, select the second menu item, ‘Staking’.

Cudos Dashboard
5

You will then be greeted with a list of validators. You can filter by voting power, condition and commission, pick the validator that best suits your needs and click ‘Delegate’. 

6

Confirm your account address is correct and specify the amount of CUDOS you wish to delegate, then click ‘Submit’.

7

Once you have approved the transaction fees, you will successfully delegate your stake to a validator and be earning rewards.