Staking is an important aspect of the nominated proof-of-stake consensus mechanism, which defines which blocks get written to the chain as well as the roles, rules, and incentives of Polymesh.
Staking secures the network by aligning the economic incentives of node operators and stakers to the correct operation of the chain through rewards and penalties denominated in POLYX.
Stakers can be any POLYX holder whose identity has been verified through a customer due diligence process.
Stakers back node operators of their choice with POLYX to be rewarded depending on the node operator’s performance running their node (i.e. keeping their node online; writing blocks to the chain per its rules). Staked POLYX can also be used to signal support in Polymesh governance.Who are node operators?
Set the amount of POLYX you wish to stake and select the node operators you wish to stake it on. Note that changing your stake may take up to 1 day to update, and any amount of unstaked POLYX will be locked for 28 days.
Stake POLYX on node operators to increase your chance of receiving rewards. Note that only the top 2,048 stakers per operator will receive rewards.
Earn staking rewards when one or more operators you have staked are part of the block-writing operating pool. Your total stake will be distributed across these active operators.
Nominated Proof-of-Stake on Polymesh defines how node operators are allowed to participate in the chain’s consensus protocol and validate new blocks. It keeps the chain highly secure by only permitting node operators with the highest amounts of stake to validate blocks.
Nominated Proof-of-Stake makes it harder for a single adversary to attack the chain since it takes considerable reputation to build up stake. It also makes attacking the system costly since such behaviour results in stake being slashed.
Block rewards and fines are essential to the nominated Proof-of-Stake consensus mechanism and therefore proper operation of the chain.
For each block created, the node operator who authored it is rewarded in POLYX and gives a cut to their stakers. However, failure to meet performance standards of the chain can lead to node operators being fined in POLYX. Stakers may also be fined pending Governance Council approval.
Rewards and fines are calculated and enacted per era (every 24 hours).