Avalanche

Time factors

Protocol timeHuman 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 Stake cannot be withdrawn before the selected duration ends.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

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