Stake ATOM with Kiln, enterprise-grade staking

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.

ATOM rewards are distributed after each block produced, this is roughly every 7.23 seconds. Rewards are calculated based on the proportion of your stake delegated to the pool.

The risks associated with staking ATOM comes from double signing and downtime. Double spending on the Cosmos protocol comes with a 5% slashing penalty and a 0.01% slashing for downtime. Kiln’s technology helps mitigate these outcomes by providing the required maintenance. When delegating with Kiln these issues are therefore taken care of so you don’t have to worry.

The minimum amount that you will need to stake to contribute to the Cosmos network is at least 1 ATOM.

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

The Cosmos protocol has a longer unbonding period than most, making it in-ideal for those who may need to access their assets promptly. The unbonding period comes in at 21 days for the Cosmos blockchain.

Rewards are distributed every time a block is produced (every 7.23 seconds), rewards account for 21% to 25% GRR. Penalties, on the other hand, are at 5% slashing for double signing, and 0.01% for any downtime.

The average block time on ATOM is ~7.23 sec.

To stake, or delegate, ATOM coins, you will need a wallet that holds accessible ATOM for staking along with a 1 ATOM fee. To delegate you will need to find an active ATOM validator to delegate your coins to.

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.

‍

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