Cosmos Hub

Time factors

Protocol time
Human readable time
Protocol time
Block
7.23 seconds
First reward delay
1 block
7.23 seconds
Reward frequency
Every block
7.23 seconds
Unbonding period
21 days
21 days
  • The protocol has an implicit block time target of 7.23 seconds. However, this is not an enforced parameter and block times can fluctuate depending on network conditions. Block times have been clocking closer to 6 seconds.

Lifecycle

Must know before staking

Minimum staking 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 Cosmos Hub is 67%. 10% of the newly issued tokens is sent to the community pool and the rest is sent to stakers as rewards.
    • Transaction fees. A portion 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 1% to 5% more rewards depending on how many other validator consensus votes have been collected.
    • Commissions.

Risk

  • Penalty. A validator that fails to be online for 500 blocks out of the most recent 10,000 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
180
Validator requirements

Resources

Update notes

2023-06-18: Cosmos Hub governance voted to increase the active validator set from 175 to 180 (announcement).