OKC

Time factors

Protocol timeHuman readable time

Protocol time 1

Block

3 seconds

Protocol time 2

Epoch (= 252 blocks)

12.6 minutes

First reward delay

1 block

3 seconds

Reward frequency

Every block

3 seconds

Unbonding period

14 days

14 days

  • Block times can fluctuate depending on network conditions.

Lifecycle

  • Delegated stake is updated on the protocol every block.

  • The active validator set is updated on the protocol every epoch (252 blocks).

Must know before staking

Minimum stake amount

✅

0.0001 OKT

Partial stake changes

✅

Partial reward withdrawal

❌

Compounding

❌

Penalty

⚠️

Offline

Slashing

⚠️

Equivocation

  • Stakers can select up to 30 validators with their stake. Stakers will receive rewards from all validators they select.

  • Stakers needs to re-vote their validators every week to increase their stake effectiveness. Staking additional amounts or withdrawing rewards will also have the same effect as re-voting.

Advanced topics

General

  • Re-voting for validators is required to prevent stake decay. The protocol is designed to double the effectiveness of stake that is re-voted weekly over a year, punishing idle stakers. For example, let’s assume Alice and Bob have both staked 100 OKT today and the protocol has no other stakers. Under this scenario, the protocol will recognize Alice and Bob to have 50% stake power. Fast forward to a year from now, Alice has been constantly re-voting weekly while Bob has taken no action after staking once. The protocol will recognize Alice to have 67% stake power while Bob will have only 33% stake power.

  • Stake decay and multiple validator selections are similar to the staking mechanism design of EOS.

Rewards

  • Rewards come from newly issued tokens and transaction fees.

    • Fixed number of tokens issued every block. The protocol starts with issuing 0.5 OKT per block. Every 31,557,600 blocks (approximately 3 years), the issued amount is halved. For example, by year 10, 0.125 OKT will be issued each block.

    • Transaction fees.

  • Factors that impact realized rewards.

    • The 21 active validators receive additional rewards. 25% of newly issued tokens are distributed equally to each active validator and their stakers. 75% of newly issued tokens are distributed proportionally to stake amounts across all validators (including both active and candidate validators) and their stakers.

    • Commissions.

Risks

  • The protocol does not deduct any stake from validators who are penalized or slashed.

  • Penalty. A validator that fails to be online for 500 blocks out of the most recent 10,000 blocks will be considered offline. The offline validator will kicked off the active validator set and will be able to join only after 10 minutes has passed.

  • Slashing. A validator that attests to two different blocks will be slashed. The slashed validator will be indefinitely kicked off the active validator set and will need to create a new validator.

Validators

Total validator cap

✅

21 active, all other validators are considered candidates

Validator requirements

✅

10,000 OKT

  • Candidate validators and active validators receive rewards proportional to stake amounts.

  • The 21 active validators are responsible for performing block proposing and voting responsibilities. They receive additional rewards on top of the rewards distributed proportional to stake amounts.

  • The 21 active validator set is updated only once every epoch.

Resources

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