NEAR Protocol

Time factors

Protocol time
Human 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

Last modified 8mo ago