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Staking DracmaS

Learn how to stake your tokens to earn rewards while securing the network.

Earn Rewards, Secure the Network

Earn Rewards, Secure the Network

Staking is the process of locking your DracmaS tokens to support the network's operations. In return, you earn rewards and help maintain EmpoorioChain's security and decentralization.

How Staking Works in EmpoorioChain

Staking in EmpoorioChain follows a Proof-of-Stake (PoS) consensus mechanism. When you stake DracmaS tokens, you're essentially locking them as collateral to support the network's security and operations. Here's the detailed process:

  1. Token Locking: Your staked tokens are locked in a smart contract and become part of the total stake securing the network.
  2. Validator Selection: The protocol randomly selects validators weighted by their stake amount for block production.
  3. Block Validation: Chosen validators propose and validate new blocks, earning transaction fees and inflationary rewards.
  4. Reward Distribution: A portion of rewards flows back to stakers proportional to their contribution to the total stake.
  5. Slashing Protection: The protocol includes slashing mechanisms to penalize malicious validators, protecting the network.

EmpoorioChain uses a sophisticated staking mechanism that combines elements of Delegated Proof-of-Stake (DPoS) with liquid staking features, allowing both direct participation and delegation.

Staking Options in Empoorio Ecosystem

Direct Staking (Validator Operation)

Run your own validator node and stake tokens directly. This requires technical expertise and significant hardware resources.

  • Minimum Stake: 10,000 DRAC
  • Rewards: Full validator rewards + transaction fees
  • Risks: Hardware failures, slashing penalties
  • Requirements: 24/7 server, technical maintenance

Delegation (Passive Staking)

Delegate your tokens to trusted validators without running infrastructure. This is the most accessible option for most users.

  • Minimum Stake: 1 DRAC (no upper limit)
  • Rewards: Proportional share of validator earnings (minus commission)
  • Risks: Validator slashing affects delegators
  • Requirements: Choose reputable validator, monitor performance

Liquid Staking

Stake tokens through DeFi protocols to receive liquid staking tokens (stDRAC) that can be used in DeFi while earning staking rewards.

  • Minimum Stake: Variable by protocol
  • Rewards: Staking rewards + DeFi yields
  • Risks: Smart contract risks, impermanent loss
  • Requirements: Understanding of DeFi protocols

Staking Rewards and Economics

EmpoorioChain's staking rewards come from two main sources: inflationary token issuance and transaction fees. The current reward structure is designed to be sustainable and attractive for long-term participation.

Current Reward Parameters

  • Annual Inflation Rate: 8-10% (adjustable by governance)
  • Target Staking Ratio: 70% of total supply
  • Validator Commission: 5-20% (set by individual validators)
  • Compounding: Automatic compounding every epoch (24 hours)
  • Current APY: 12-15% for delegators (varies by validator)

Reward Calculation Example

If you stake 1,000 DRAC with a validator offering 15% APY and 10% commission:

  • Daily Rewards: (1,000 × 0.15 × 0.9) ÷ 365 ≈ 0.37 DRAC
  • Monthly Rewards: ≈ 11.25 DRAC
  • Annual Rewards: ≈ 135 DRAC
  • Effective APY: ≈ 13.5%

Risks and Considerations

While staking is generally safe, it's important to understand the potential risks involved:

  • Slashing: Validators can be penalized for downtime or malicious behavior. Delegators share in slashing penalties proportional to their stake.
  • Unbonding Period: Tokens are locked for 21 days after unstaking. This is a security measure to prevent attacks.
  • Validator Risks: Choosing an unreliable validator can result in missed rewards or slashing.
  • Opportunity Cost: Staked tokens cannot be used for other purposes during the staking period.
  • Smart Contract Risks: Though minimal, there's always a small risk of smart contract vulnerabilities.

Getting Started with Staking

Ready to start staking? Here's your step-by-step guide:

  1. Prepare Your Wallet: Ensure you have DRAC tokens in your Eoonia wallet connected to EmpoorioChain.
  2. Choose Your Method: Decide between delegation, direct staking, or liquid staking based on your technical expertise and risk tolerance.
  3. Select a Validator: Research validators based on uptime, commission rates, and security practices. Use tools like the Empoorio Staking Dashboard.
  4. Stake Your Tokens: Use the Eoonia wallet's staking interface or the official Empoorio staking portal to delegate your tokens.
  5. Monitor Performance: Regularly check your rewards and validator performance. Be prepared to redelegate if needed.

Validator Selection Tips

  • Look for validators with >99% uptime
  • Check commission rates (lower isn't always better)
  • Verify security practices and team reputation
  • Diversify across multiple validators to reduce risk
  • Use official validator directories and community reviews

Staking Calculator

Estimate your potential rewards based on staking amount and duration. Remember that actual rewards may vary based on network conditions and validator performance.