Staking

What is staking?

Staking is the process of actively participating in transaction validation of Unicorn U2u Consensus. On the U2U network, anyone with a minimum required balance of U2U can validate and earn staking rewards. Currently, the minimum requirement is 1 U2U token.

How staking works?

U2U network uses Delegated Proof-of-Stake (DPoS) as its mechanism of selecting the top Validators who have secured the most voting power to participate in the validation of blocks and consensus process. These Validator will earn reward by doing their work. There will be two different kind of staking:

Delegators delegate their U2U to the one or more Validators and earn the incentives. The final incentives will be the reward from staking minus the commission fee from the Validators.

Validators staking by use their U2U and earn the reward. The Validators will not only earn reward from their staking, but also the commission fee which they charge to the Delegators.

Staking rules

During the staking process, the staking system will pay out rewards to all Validators and their Delegators through execution consensus protocol for each epoch. The rewards can be withdrawn immediately. The Delegators can un-delegate Validator(s) at any time during their staking, and their staked U2U will be held for 3 epochs (maximum 21 minutes) before claiming back to their wallet.

In contrast, if validators double sign, their staked (including delegators delegated to them) can be slashed an portion of their total stake amount when withdraw. This penalty amount is calculated as (1 - refund ratio) * total stake amount where the refund ratio is different between Validators and always less than 1.