Stake Flow with Kiln, enterprise-grade staking
What is Flow?
Flow is a fast and decentralized blockchain designed to power an ecosystem of games and applications.
Thanks to its multi-role architecture, Flow can scale natively and power millions of dApps requests in a developer friendly environment, Flow being ACID-compliant and using its own smart contract development language called Cadence.
What is staking?
In a Proof-of-Stake blockchain such as Flow, staking consists of locking native tokens to earn the right to secure a chain, and earn a yield while doing so.
With Flow staking, users lock FLOW to fund a validator, which helps secure the chain by proposing new blocks and attesting other validators’ blocks, earning a yield in the process.
There are different kinds of nodes on the Flow blockchain. Kiln runs a Consensus node responsible for assembling transactions and proposing blocks, similar to a “validator” on PoS or DPoS blockchains.
How to stake Flow with Kiln?
To stake FLOW in a few clicks, just follow these next steps. It should take you less than 5 minutes to complete your first transaction:
- Login to Kiln dashboard
- Go to the /stake/FLOW page of the dashboard
- Select the Account you want to stake on
- Choose the amount of FLOW you want to stake
- Connect your wallet (for instance Ledger, Metamask, Trust Wallet, etc) Kiln supports multiple wallets as well as WalletConnect
- Click on the “Stake” button!
As easy as pie! Kiln takes care of everything. To unstake, you simply need to undelegate into one transaction and you will receive your original stake back in your wallet as well as accumulated rewards from delegation.
Why should you stake your assets?
Staking generates the safest and most predictable yields in the crypto space. It is the most natural yield feature in crypto as the value originates from the blockchain’s native currency inflation, which is forecastable.
- Put your treasury to work
- Diversify and earn, while contributing to blockchains decentralization
- Bring new opportunities to generate safe yields to your users
What are the rewards associated with staking FLOW?
As an incentive for helping to safeguard the network, you can earn up to 9.87% APR* from your delegation on Kiln’s Flow validator.
Why should you stake your FLOW with Kiln?
Kiln is the leading enterprise-grade staking platform enabling institutional customers to stake FLOW, and to white-label FLOW’s 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:
- Stake FLOW in 1 click
- Manage all their FLOW stakes and rewards from a single dashboard
- Keep custody of your assets, Kiln is non-custodial and work with existing custodians solutions e.g.Fireblocks
- SOC 2 certified and Industry leading SLAs (0 penalties recorded and 99.95% effective uptime)
Stake Flow FAQ
What does Proof-of Stake mean?
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, 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 incentivises collaboration and fair practices while validating information in a similar way that PoW has with incentives and punishments to curtail malicious activity while creating consensus.
What is the role of Flow validators?
Flow validators verify and add new transactions to the network through the blocks they produce, or attest other validators’ blocks. Validators get rewarded with FLOW tokens for securing the network and passing transactions.
How much can you earn by staking FLOW? When will I receive FLOW rewards?
FLOW staking APR is currently 9.87% at the time of writing this article. FLOW APR may be subject to change in the future. Rewards can be claimed through the ‘Claim’ button in the Rewards tab of your dashboard.
Does Flow network have transaction and gas fees?
Yes Flow has both transactions and gas fees. For most transactions, fees are less than $0.000001 (paid with FLOW), even during high-traffic periods.
What are the risks associated with staking FLOW?
There are no slashing penalties associated with staking FLOW yet. Slashing will be enforced in the future to penalize validators that would go against the consensus.
Is there a minimum and maximum amount of FLOW to stake for Flow?
You can stake Flow’s FLOW token with as little as 1 FLOW.
Do I maintain custody of my FLOW tokens? Is FLOW staking non-custodial?
When you delegate your FLOW token from your wallet (ideally a Ledger hardware wallet) to a validator such as Kiln to receive staking rewards, you keep full custody of your funds.
What is the lockup period to stake Flow? When can I unstake and withdraw my FLOW?
Staking is effective instantly and it takes 2 epochs (1 to 2 weeks) to unstake FLOW tokens. After the first epoch your FLOW will move to the “unstaking” status and will be unstaked and free to transfer after the second period.
What is the average block time on Flow?
The average block time on Flow is 2 sec, meaning a new block is produced every 2 second.
What is an Annual Percentage Rate (APR) and how is it different from Annual Percentage Yield (APY)?
APR, or annual percentage rate, is the fixed interest rate earned on an investment over a one-year period. It is the percentage of return investors can expect to receive on their investment. On the other hand, APY or annual percentage yield, takes into account the compounding of interest on a fixed schedule. It includes both the interest earned and the interest on previously earned interest.
When it comes to PoS protocols, compounding does not always apply as additional validators can be needed to stake more. Therefore, APR is used instead of APY. It's worth noting that APY and APR cannot be compared directly, as they measure different things. However, it is possible to convert APR to APY and vice versa.