Stake Polkadot with Kiln enterprise-grade staking

What does Proof-of Stake mean?

Proof-of-Stake (PoS) is a type of consensus mechanism used to validate cryptocurrency transactions. Through PoS, validators can contribute to the block production of a chain while keeping environmental concerns to a minimum, which is becoming an increasingly large issue in Proof-of-Work.

By staking capital rather than energy, validators risk losing a portion of their value and future potential for staking by misbehaving while creating blocks. This incentivizes collaboration and minimizes malicious activity in the consensus process.

What is the difference between PoS and dPoS?

Both are consensus algorithms, helping to democratize one participation to securing a blockchain. Delegated PoS or dPoS means that one validator can stake tokens from several clients. These clients can indeed delegate their tokens to an existing validator instead of running their own.

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When will I receive DOT rewards?

DOT rewards are claimable every era (24 hours) from blocks that your stake contributes to the validation of.

Does the interest compound when staking DOT?

The Polkadot network does not automatically compound when staking DOT. These rewards will need to be re-staked every time you earn them.

What are the risks associated with staking DOT?

The Polkadot network implements a slashing penalty for any attempts at double signing, other penalties occur for downtime. Slashing penalties vary depending on the severity of the malicious activity that are presented by the validator, and can be as high as most, or all, of the staked and nominated tokens.

For validators that are unresponsive for more than four hours, the penalty is called a ‘chill’ where validators lose their nominators and the chance to validate until further addressed.

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Is there a minimum and maximum amount to stake for Polkadot?

The minimum amount when staking DOT is 10 DOT; receiving rewards for staking, however, depends entirely on the amount of staked DOT you contribute. The more DOT you stake, the greater the chance of earning rewards.

Do I maintain custody of my DOT tokens? Is DOT staking non-custodial?

While you may self-custody your staked DOT (ideally using a Ledger hardware wallet), you may choose a third-party custodian to control the withdrawal of your staked DOT (ie Fireblocks).

What is the lockup period to stake Polkadot? When can I unstake and withdraw my DOT?

Once staking DOT, an unbonding period of 28 days will be required before your assets appear back in your wallet. Rewards are not automatically re-staked, they will be sent to your wallet as soon as they are distributed.

How rewards and penalties work?

Every slot the validator is expected to sign attestations. If submitted attestations are good the validator receives rewards, otherwise it receives penalties. In case the validator is offline it will also receive penalties.

What is the average block time on Polkadot?

The average block time on Polkadot is ~ 6 sec.

What is a Gross Reward Rate (GRR) and how is it different from a Net Reward Rate (NRR)?

In the context of Proof-of-Stake blockchains, the gross reward rate (GRR) refers to the total or gross amount of rewards earned from staking before deducting any fees or expenses. This is a reward rate that fluctuates with the operations of the protocol and the performance of validators, it is not set by Kiln. The net reward rate (NRR), on the other hand, takes into account the deductions or expenses, providing a measure of the actual rewards received after subtracting fees or costs.

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Where can I learn more about Polkadot?

There are many existing resources but we invite you to visit the Polkadot website and to check our latest articles on our blog.

Stake DOT with Kiln, enterprise-grade staking

Polkadot

What is Polkadot?

What is staking?

How to stake Polkadot with Kiln?

What are the rewards associated with staking DOT?

Why should you stake your DOT with Kiln?