Home Altcoins News Staking Rate on Polkadot (DOT) has Decreased to 58.0%

Staking Rate on Polkadot (DOT) has Decreased to 58.0%

Staking Rate on Polkadot (DOT) has Decreased to 58.0%

Bill Laboon Expressed: The staking rate on Polkadot has decreased to 58.0%.

For those who do not know, Staking is the process of holding funds in a crypto wallet to support the operations of a blockchain network and, in return, holders are rewarded for their contribution.

Polkadot (DOT) focuses on enabling a new decentralized web by allowing blockchains of all kinds to securely interoperate.

Polkadot makes use of a Nominated Proof of Stake (NPoS) protocol to secure its network. DOT holders who want to stake their assets can do so as validator, which requires a node running 24/7, or by nominating a validator. By doing so, they become a nominator.

For clarity, the current annual yield on Polkadot is around 10%, minus the validators’ commission rate. Carefully select your validator(s) as the rewards you’ll receive will depend on them. If they do not behave properly, they will get slashed and you will lose DOT as well.  Different criteria matter like the amount of the stake, the number of validators, and their commission.

Users have the freedom of choice to decide on which validator to work with.  They give access to a list of several validators. It’s up to you to choose which one you want to go with.

Those who want to participate in the Polkadot network other than by staking can nominate the most competent and trustworthy validators, thus make the network more efficient.

Access not only staking, but other crypto services: Ledger is the gateway to swap, buy, sell or lend your crypto. All in one place.

Bill Laboon further stated, Referendum 40, proposing to decrease the number of validators in the active set to 259, is currently failing.

Kusama News Premierly has submitted a Treasury Proposal for funding Polk assembly maintenance for three months.

Pinknode has a post seeking feedback for a potential Treasury Proposal for their improved dashboard for managing infrastructure. Note the Polkadot version of this has already passed.

Illingworth22 expressed:  When all the DOT is in staked for the Crowdloans, does this make any difference to the network security? Has the total locked DOT locked into Crowdloans have any bearing on the security?

For clarity, For Polkadot and Kusama, a Crowdloan is a way for new projects to garner the support they need to connect to the Kusama or Polkadot network as a parachain. If the project is unable to win an auction, the funds are returned to their owner and unlocked.

Bill Laboon Expressed:  Yes, this has been discussed quite a bit. Essentially it indirectly affects staking rate, but there are countervailing forces (e.g. increased staking rewards as staking rate decreases) that should prevent staking rate from getting to a dangerously low point.

Community response:  Great solution to the problem! Incentives to maintain network security.

 

 

 

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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