Introduction
Earn rewards while securing Treasurenet
Cryptocurrency investors who want to earn staking rewards without the hassle of configuring a validator node, or do not have enough cryptocurrency to meet the minimum requirements to become a validator, can delegate their UNIT tokens to an existing validator. The validator will charge a small fee for their service.
Validators can also earn staking rewards by self-delegating their tokens. Staking is part of the Treasurenet ecosystem, where any user with any number of UNIT tokens can help protect the network and receive rewards in the process, and these users are called stakers.
You will not lose custody of staked UNIT tokens. Even if it is not freely tradable, the staked UNIT will never be owned by a Validator node.
Overview of the POS Mechanism
Treasurenet is a public blockchain utilizing a BFT consensus protocol based on the PoS mechanism, built on Tendermint Core and Cosmos-SDK.
In Treasurenet, any entity can become a validator by staking assets on the chain, but not all validators are eligible to participate in consensus voting. To ensure consensus efficiency, Treasurenet places restrictions on the set of validators that can participate in consensus voting. For specific rules, please refer to the Active Validator selection criteria.
Operating a validator node requires technical expertise, and not everyone can manage a validator node independently. To encourage participation in consensus voting, Treasurenet allows any entity holding on-chain assets to delegate their assets to one or more validators, who then vote on their behalf.
Active validators are selected based on the number of staked on-chain assets. The staked assets are counted as the sum of the validator's staked on-chain assets and the delegated on-chain assets.
On-chain asset holders can re-delegate their assets to a different, more competitive validator based on performance or withdraw their delegation entirely.
Treasurenet has built a reward mechanism that rewards active validators who participate in consensus voting through block rewards and transaction fees together as the sum of rewards. This encourages community members to stake as many on-chain assets as possible, either by becoming a validator themselves or by delegating assets to an existing validator.
Treasurenet also has a penalty mechanism to punish validators who violate consensus rules or have unstable nodes. Validator rewards and penalties are shared between the validator and the delegators.
When distributing rewards, an active validator operator can take a commission from the on-chain assets they represent to compensate for maintaining a stable node. This mutually beneficial design motivates validator operators to ensure the safe, stable, and efficient operation of their validator nodes to attract more on-chain asset holders.
What is Staking?
Staking is the process of depositing 158 UNIT tokens to activate your own validator node. As a validator, you are responsible for storing data, processing transactions, and adding new blocks to the blockchain. This will secure Treasurenet for everyone and earn you new UNIT Tokens in the process!
Why stake your Unit?
Earn rewards
- Reward actions that help the network reach consensus. You will be rewarded for correctly batching transactions into new blocks and checking other validators, which keeps the blockchain running securely.
Better security
- As more UNIT tokens are staked, the network becomes more resistant to attacks An attacker would need to control most of the UNIT tokens in the system to pose a significant security threat.
Community Resources
- Provide links to community resources, such as forums, chat groups, and other support channels, to assist users with any questions or issues they may encounter while staking.