FAQ - Staking

FAQ - Staking

How are staking rewards generated?

The Staking Rewards on VinuChain consist of both network rewards and fees:

• Inflation on the VinuChain Network (Block Rewards): The VinuChain network emits 0.93 VC per second. The Block rewards are distributed after each epoch (1000 event blocks generated by the network since the previous epoch, or after 4 hours have elapsed since the previous epoch, whichever occurs first). Block rewards are distributed to validators and consequently shared amongst delegators. This implies that VC holders who choose not to stake will get diluted over time.

• Transaction Fees: Each transaction processed by the network comes with transaction fees. 30% of transaction fees are burned. The remaining 70% of transaction fees are distributed between validators proportional to their transactions reward weight. The Staking APR will vary with network usage, as the network gets busier the APR will rise and vice versa.

Please note that the total annual rewards are divided by all active stakers; hence, as the amount of staked tokens goes up, the reward rate goes down.

How are Staking Rewards Calculated?

How are staking rewards calculated?

Can others access my staked tokens?

No. Assuming no one else has access to your private key or seed phrase, nobody except you will have access to your tokens. Make sure not to share nor lose your seed phrase or private key.

Can I lose my tokens when staking?

If you stake to a validator node that acts maliciously, you could lose all your staked tokens. You must choose the validator node wisely and make sure they are reputable. Slashing delegators as well, instead of only validators, is an essential part of network security. It makes it costly for a set of bad actors to take over the majority of the network.

How do I choose a reputable validator?

Most validators for VinuChain have active communities, websites, and Twitter accounts. Do your own research and ask around in the community as they will be able to help you.

Can a validator run away with my funds?

No. In any case, a validator does not have access to any other tokens than their own. However, if a validator acts maliciously, all the funds staked to that node can be lost.

What happens if a validator goes offline?

If a validator node goes offline, it stops receiving rewards since it is not helping secure the network anymore. When it comes back online, the rewards resume.

Can I withdraw my delegation if a node goes offline?

Yes, you can.

Can I re-stake or increase my delegation?

Yes. This is possible through VinuScan.

Can I unlock my delegation before the lock-up period ends?

Yes, you can. However, you will pay a penalty for doing so. Since your rewards are always unlocked and withdrawable, the penalty will come from your staked amount. If you unlock earlier, regardless of how much of the lock-up period is left, you will only receive half of the base rewards; the additional rewards will be burned.

In any case, you will never end up with fewer tokens than you delegated.