What Is Staking?
Staking is when users lock up cryptocurrency in a wallet to support a blockchain network. Users earn rewards for validating transactions or creating new blocks, which helps secure the network.
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, sers can stake assets directly through the Element app, contributing to the network's security and operation while earning rewards. This enables Element users to leverage blockchain and DeFi functionality while maintaining secure and private communication.
What is Non-Custodial Bitcoin Staking?
Non-Custodial Bitcoin Staking enables Bitcoin holders to earn CORE tokens by simply locking up their Bitcoin on the Bitcoin blockchain, thereby never giving up custody of their private keys to any third party, external smart contract, or MPC wallet. In locking up their Bitcoin on the Bitcoin blockchain, Bitcoin stakers contribute to the election of Core validators, thereby enhancing and decentralizing the security of Satoshi Plus.
How Long Are My Tokens Locked For?
CORE: The CORE staking mechanism is highly flexible, enabling users to stake or unstake their tokens at any time without a locking period. This feature provides liquidity and freedom for participants to engage in staking activities according to their preferences and market conditions.
Bitcoin: When tokens are locked up for Bitcoin staking, they remain locked up until the end of the chosen time-lock period. There is no way to unlock tokens early.
How Are Reward Rates Calculated?
The Reward Rate is the annual growth rate of rewards 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.
Are Core Staking, Unstaking, and Claiming Rewards Done Automatically?
Staking, unstaking, and claiming rewards must be 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: Staking is the process of committing your cryptocurrency to support a blockchain network in exchange for earning rewards
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.
Can A User Have Multiple Stakes?
Yes. However, all CORE stakes appear as one active stake due to the current single-validator setup.
Is There A Minimum?
CORE: Minimum to stake is 1 CORE
Bitcoin: Minimum to stake is .01 BTC
Is The Staking Considered Liquid?
No, it is considered non-liquid staking. Non-liquid staking locks assets 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 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.
If you have any questions or need assistance, please don't hesitate to contact our support team.