Staking

Overview

  • Staking: The process of locking up funds for some time, placing them at risk of slashing (loss) in order to become a rewarded maintainer of the network. Staking is also known as bonding.
  • Nominating: The process of placing staked funds behind one or more validators in order to share in any reward.
  • Chill: Any of the roles above can choose to step back temporarily and just chill for a while. This means that if they are a nominator, they will not be considered as voters anymore and if they are validators, they will no longer be a candidate for the next election.

Diagram

Description

Validator

  • An account bond GLCH to become a candidate and they might get elected as a validator. The result of the election is determined by nominators and their votes. The higher the voting power, the higher the validator ranking. The top 21 ranking candidates become validators at the end of an epoch
  • Incentives distributed to validators don’t depend on the staked amount of GLCH. The top 21 ranking validators are equally granted the same chance of verifying blocks as other validators. For example, a validator staking 1 GLCH has the same chance as a validator staking 100 GLCH. Therefore, the reward is paid equally among 21 top-ranking validators.

Nominator

  • An account bond an amount of GLCH and selects validators they want to nominate. There is no limit to the number of nominators a validator may have.
  • Nominators share part of the rewards earned by the validators in the active set that they nominated. The reward proportion is based on the amount of GLCH staked for the vote.

Idle

If users do not want to join the two roles above and just want to stake GLCH, they can choose to become idle.
Last modified 10mo ago