Band Protocol
Time factors
Protocol time | Human readable time | |
---|---|---|
Protocol time | Block | 3 seconds |
First reward delay | 1 block | 3 seconds |
Reward frequency | Every block | 3 seconds |
Unbonding period | 21 days | 21 days |
Block times are not fixed.
Lifecycle
Must know before staking
Minimum stake amount | ❌ | |
Partial stake changes | ✅ | |
Partial reward withdrawal | ❌ | |
Compounding | ❌ | |
Penalty | ✅ | Offline - 0.01% |
Slashing | ✅ | Equivocation - 5% |
Redelegation without unstaking. The protocol allows stakers to switch their validators without having to unstake and then stake again. The redelegation function can be used only once every 21 days.
Advanced topics
General
Governance power delegation. By staking with a validator, stakers are delegating governance power to that validator as well. Stakers have the option to overwrite their validator’s governance vote.
Rewards
Rewards come from newly issued tokens and transaction fees.
Inflation rate applied to total token supply. Inflation rate adjusts depending on the actual staking ratio to target staking ratio. The rate increases when actual staking ratio is below target staking ratio and vice-versa. The target staking ratio for the Band Protocol is 67%. 2% of the newly issued tokens is sent to the community pool and the rest is sent to stakers as rewards.
Transaction fees. 2% of the transaction fees is sent to the community pool and the rest is sent to stakers as rewards.
Factors that impact realized rewards.
Block proposer. A validator selected to propose blocks earns from 3% to 15% more rewards depending on how many other validator consensus votes have been collected.
Commissions.
Risks
Penalty. A validator that fails to be online for 1,500 blocks out of the most recent 30,000 blocks will be considered offline. Stakers of an offline validator will be penalized and lose 0.01% of their stake. The offline validator will kicked off the active validator set and will be able to join after 10 minutes has passed.
Slashing. A validator that attests to two different blocks will be slashed. Stakers of a slashed validator will lose 5% of their stake. The slashed validator will be indefinitely kicked off the active validator set and will need to create a new validator.
Validators
Total validator cap | ✅ | 100 |
Validator requirements | ❌ |
The protocol specializes in oracles. Validators are responsible for fulfilling data requests on top of securing the protocol.
Resources
Band Protocol documentation: https://docs.bandchain.org/
Band Protocol explorer: https://www.cosmoscan.io/
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