- What is staking?
Staking is when users lock up cryptocurrency in a wallet to support a blockchain network. They earn rewards for doing so by validating transactions or creating new blocks. It helps secure the network and users earn rewards in return. - What is Core staking?
Core Staking is the process of participating in the consensus mechanism of the Core Chain by locking up a certain amount of cryptocurrencies as collateral to help secure the network. In Element, which utilizes Core technology, this means that users can stake their assets directly through the Element app. By doing so, they contribute to the security and operation of the Core network and, in return, may receive rewards. This enables Element users to leverage blockchain and DeFi functionality while maintaining secure and private communication. - How long are my tokens locked up for?
The staking mechanism of CORE offers the advantage of flexibility, allowing users to stake or unstake their tokens at their convenience without any locking period. This feature provides liquidity and freedom for participants to engage in staking activities according to their preferences and market conditions.
- How is Reward rate calculated?
Reward Rate is the annual rate of reward growth paid to delegators. This is the estimated value based on the amount of CORE delegated to this validator in real-time. - What is commission?
When a 5% commission is mentioned regarding claiming staking rewards, it indicates that a fee equivalent to 5% of the total rewards being claimed will be deducted. This commission represents the portion taken by the validator and is set as a percentage. - Why is there only one validator?
We are starting with a single Element validator but will add options for choosing different validators in the future. - How do I get my tokens out of lock-up?
To withdraw tokens from lock-up in CORE staking, users can choose to 'Stop Earning' at any time. - Are Core staking, unstaking, and claiming rewards automatically done or initiated by the user?
The actions of staking, unstaking, and claiming rewards are indeed initiated by the user. This is because each of these actions involves a transaction that must be explicitly performed by the user. Here’s a more focused explanation:
- Staking: The user actively chooses to lock their assets into a staking contract, initiating a transaction on the blockchain.
- Unstaking: When the user decides to withdraw their assets, they initiate an unstaking transaction, which may include a waiting period known as the “unbonding” time.
- Claiming Rewards: The rewards earned from staking are not automatically credited to the user’s account; the user must initiate a transaction to claim these rewards.
In summary, the user is responsible for all transactions related to staking activities, ensuring they have control over their assets and rewards.
- Can a user have multiple stakes?
Yes. However, all CORE stakes will show as one active stake since we are currently operating with a single validator at this time. - Is there a minimum amount that I can stake?
1 $CORE for Core staking. - Is the staking ‘liquid’?
No, is a Non-liquid staking. A non-liquid staking, is a form of staking in which assets are locked on a Proof of Stake (PoS) network and are not available for use in other transactions or investments during the staking period. This means that users cannot access their assets until the staking period ends or certain protocol conditions are met. - Is the staking non-custodial?
Yes. A non-custodial staking, is a method of staking in which users maintain full control over their assets and the associated private keys. Instead of relying on a third party to perform staking, users directly participate in the process through the blockchain protocol. The main advantage of non-custodial staking is that it provides greater security and control over assets, as users do not have to hand over their private keys to an external custodian. However, this method may require more technical knowledge and effort from the user to manage their staking participation.