Celestia is a data availability network designed to seamlessly accommodate the increasing number of users, facilitating easy blockchain deployment. It introduces a groundbreaking approach to tackle the fundamental scalability issues faced by blockchains, known as the modular blockchain architecture.
Proof-of-Stake protocols use staking to create consensus. By locking native tokens into a validator, you earn the right to secure a chain and get rewards on your stake. Due to its environmental efficiency, staking has overtaken mining and is used far more often in newer protocols.
By locking a protocol’s native tokens (ie TIA) to give “validators” the right to secure a chain. Validators propose new blocks or attest other validators’ blocks, gaining rewards for doing so.
Staking is one of the safest and most predictable ways to get rewarded in the crypto space as the value originates from the blockchain’s native currency inflation, and a share of transaction fees. You help secure the network and get rewards by staking your TIA.
If you do not stake, your assets token share will be diluted among other people’s tokens that are being staked and accumulating new tokens into the network.
As an incentive for helping to safeguard the network, you can get rewarded with up to a 25% GRR. (source: https://protocolstaking.info/)
Kiln is the leading enterprise-grade staking platform, enabling institutional customers to stake TIA, and to whitelabel Celestia staking functionality into their offering. Our platform is API-first and enables fully automated validators, rewards, data and commission management.
We are serving thousands of businesses worldwide so that everyone can securely and seamlessly. Our clients can stake their tokens from our dashboard, a hardware wallet, a browser wallet, a B2B custodian, a crypto exchange, or just their favorite investment app. Kiln makes staking Celestia easy, secure, and accessible to everyone.
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.
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.
There is a risk of slashing and a risk of penalty that comes with staking TIA.
When a validator attests to two different blocks, it will face slashing. Stakers who have delegated to the slashed validator will incur a 2% reduction in their stake. The slashed validator will be permanently removed from the active validator set and will be required to create a new validator.
There is no minimum staking amount to stake for Celestia.
While you may maintain self-custody of your staked TIA (ideally using a Ledger hardware wallet), you may also choose a third-party custodian to control the withdrawal of your staked TIA (i.e. Fireblocks).
On Celestia, there is a 21-day fixed duration after which tokens can be unstaked manually at any time and transferred back into your current account.
Rewards come from newly issued tokens and transaction fees.If a validator fails to be online for a specified number of blocks (in your example, 3,750 out of the last 5,000 blocks), they are considered offline. As a penalty, they are removed from the active validator set. However, they can rejoin after a cooldown period, which in your example is 1 minute.
The average block time on Celestia is currently 15 seconds.
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.