Avalanche

Time factors

Protocol time
Human readable time
Protocol time
Block
2 seconds
First reward delay
N/A
-
Reward frequency
N/A
-
Unbonding period
N/A
-

Lifecycle

  • Stake is locked for a predetermined staking duration (from 2 weeks up to 1 year) selected by the staker.
  • Rewards are distributed all at once at the end of the staking duration.

Must know before staking

Minimum stake amount
25 AVAX
Partial stake changes
Partial reward withdrawal
Compounding
Penalty
Slashing
  • Staking occurs on Avalanche’s P-Chain. Tokens must be on the P-Chain to stake.
  • Staking duration. Stakers need to select their preferred staking duration from 2 weeks to 1 year. More rewards are earned by locking up longer. Stake cannot be withdrawn before the selected duration ends.
  • Rewards are distributed all at once at the end of the staking duration.
  • Validator uptime requirement. A validator needs to be up at least 80% of its staking duration in order for its delegators to receive rewards.

Advanced topics

General

  • Staking reward rates are fixed rates. The protocol will calculate and implicitly record a reward amount using reward rates at the moment stakers stake. The implicitly recorded reward amount is distributed at the end of the selected staking duration.
  • All transaction fees are burned on the protocol.

Rewards

  • Rewards come from newly issued tokens.
    • Reserve. The maximum number of tokens for Avalanche is 720,000,000 AVAX. The difference between the maximum tokens and total supply is the reserve. A portion of the reserve is released to stakers depending on their staked amounts and staking duration.
  • Factors that impact realized rewards.
    • Staking duration. Stakers have the option to stake from 2 weeks to 1 year. More rewards are earned by locking up longer.
    • Commissions.

Risk

  • The protocol does not have any penalties or slashing.
  • A validator needs to be up at least 80% of its staking duration in order for its delegators to receive rewards.

Validators

Total validator cap
Validator requirements
2,000 AVAX
  • Validator saturation. A validator can have up to 3 million AVAX staked (combining both validator and delegator stake). Additionally, a validator can take on 5 times their self-bond amount as stake. For example, if a validator stakes 10,000 AVAX, it can take on 40,000 AVAX from other stakers.

Resources

Last modified 8mo ago