Hedera
Time factors
The protocolβs staking period begins everyday at 00:00 UTC and ends 24 hours later.
Lifecycle
Must know before staking
Delegating is called proxy staking in Hedera Hashgraph.
Reward rates are capped. Stakers cannot earn more than a 2.5% reward rate.
Staking rewards expire in 365 days and must be claimed before expiry.
Rewards are claimed if there are any changes to the accountβs balances or staking information (changes to staked amounts or selected validator).
Rewards are added directly to the staking balance of stakers.
Advanced topics
General
Stakers could be earning higher rewards under the governing councilβs decision to allocate 1 billion tokens per year to stakers. However, due to the cap, the maximum amount of rewards will not exceed a 2.5% reward rate.
Stakers can opt out of earning staking rewards. This function is primarily used for the foundation to delegate to validators without diluting rewards for other stakers.
Rewards
Rewards come from newly issued tokens.
Fixed token issuance per year. The protocolβs governing council has voted to allocate 1 billion tokens per year to be distributed as staking rewards.
Risk
The protocol does not have any penalties or slashing.
Validators
A validator requires the governing councilβs approval to join the active validator set.
A validator has the following minimum and maximum stake requirements. All validators must have more than the minimum stake threshold to earn rewards. Any additional stake above the maximum stake limit will not earn any additional staking rewards.
Resources
Hedera Hashgraph documentation: https://docs.hedera.com/hedera/
Update notes
2023-08-11: Hedera Governing Council has voted to lower the reward rate cap from 6.5% to 2.5% (announcement).
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