NEAR Protocol

Time factors

Protocol timeHuman readable time

Protocol time 1

Block

1 second

Protocol time 2

Epoch (= 43,200 blocks)

12 hours

First reward delay

2 epochs

24 hours

Reward frequency

At the beginning of every epoch

12 hours

Unbonding period

4 epochs

48 hours

  • The protocol has an implicit block time target of 1 second. Actual block times can fluctuate depending on network conditions.

Lifecycle

Must know before staking

Minimum staking amount

✅

0.1 NEAR

Partial stake changes

❌

Partial reward withdrawal

❌

Compounding

✅

Penalty

⚠️

Slashing

❌

  • Delegation happens on a smart contract. Each validator has its own dedicated staking pool smart contract that helps pool stake.

  • Validators can be kicked out. A validator that falls below the uptime threshold (90%) for a given epoch will not receive any rewards and will be kicked out of the active set. The uptime for each validator in an epoch is defined as produced blocks / expected blocks\text{produced blocks / expected blocks}.

  • Rewards are added directly to staking balance.

Advanced topics

Rewards

  • Rewards come from newly issued tokens and transaction fees.

    • Inflation rate applied to total token supply. The protocol has a fixed inflation rate of 5% applied to total supply. 10% of this newly issued tokens are sent to the protocol’s treasury. The other 90% is distributed to stakers.

    • Transaction fees. 30% of all transaction fees are directed to contract creators while the remaining 70% is distributed to stakers.

  • Factors that impact realized rewards.

    • Validator performance. Rewards for a validator is reduced by the portion of missed blocks.

Risk

  • The protocol does not have any penalties or slashing.

  • Validators can be kicked out. A validator that falls below the uptime threshold (90%) for a given epoch will not receive any rewards and will be kicked out of the active set. The uptime for each validator in an epoch is defined as produced blocks / expected blocks\text{produced blocks / expected blocks}.

Validators

Total validator cap

❌

Validator requirements

⚠️

  • The protocol has a dynamic stake requirement for validators. All validators need to maintain the stake requirement to remain part of the active set.

Resources

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