Harmony is an open blockchain built to be fully scalable and energy efficient. Through a sharding-based blockchain, the protocol achieves a 2 seconds transaction finality for very low fees. Harmony also has a built-in Zero-Knowledge Proofs functionality enabling research and innovations around privacy.
Anyone can delegate some ONE tokens to a validator that participates to the consensus of the Harmony. The more stake assigned to the validator, the more often it is chosen to write new transactions, and therefore the more it earns rewards.
Proof-of-Stake protocols use staking to create consensus. By locking native tokens into a smart contract, you earn the right to secure a chain and earn 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 ONE) to give “validators” the right to secure a chain. Validators propose new blocks or attest other validators’ blocks, gaining rewards for doing so.
Staking generates one of the safest and most predictable ways to get rewarded in the crypto space. It is the most natural reward feature in crypto as the value originates from the blockchain native currency inflation and a share of transaction fees. You help secure the network and earn rewards by staking your ONE.
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.
You can start staking with 100 ONE. To stake ONE, you’ll only need to access Kiln dashboard to stake your ONE in a few clicks. Select the Account you want to stake on and the amount of ONE and connect your wallet:
To unstake, you simply need to undelegate into one transaction, you will receive your original stake back in your wallet as well as accumulated rewards from delegation at the end of the current epoch, which is 18 hours maximum.
Detailed information about Kiln validators can be found here.
As an incentive for helping to safeguard the network, you can earn up to 8.83% GRR* from each ONE validator you stake on Kiln. (Source: https://protocolstaking.info/)
Kiln is the leading enterprise-grade staking platform, enabling institutional customers to stake ONE, and to whitelabel Harmony 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 coins from our dashboard, a hardware wallet, a browser wallet, a B2B custodian, a crypto exchange or just their favorite investment app. Kiln makes staking Harmony easy, secure, and accessible to everyone.
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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, the consensus algorithm used in Bitcoin.
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 participation in securing a blockchain. DPoS is an iteration of PoS combining real-time voting with a system based on reputation to reach consensus across the blockchain. Voting power is still determined by how many tokens they have however.
ONE rewards are issued every block in the same ONE address you are staking with.
ONE rewards are not compounded. You have to claim rewards and add them to your stake to compound ONE tokens.
Harmony implements a slashing mechanism. This includes downtime for validators and their delegators and for nodes that attempt to vote on two separate attestations at the same time. Slashed validators will add bonded tokens to the staking pool.
Slashing also occurs if Harmony’s Proof-of-Stake generates an invalid hash.
The main risk on the Harmony blockchain as of today is downtime. To prevent this risk, you can outsource your blockchain services to a dedicated infrastructure provider such as Kiln, which has a 99.95% effective uptime. You can now focus on your business while our experts take care of the infrastructure.
There is no minimum and maximum to stake ONE.
While you may maintain self-custody of your staked ONE (ideally using a Ledger hardware wallet), you may also choose a third-party custodian to control the withdrawal of your staked ONE (i.e. Fireblocks).
The maximum lockup period for Harmony is 1 epoch, and one epoch is ~18h.
For every slot, the validator is expected to sign attestations. If submitted attestations are good, the validator receives rewards, otherwise it receives penalties. In case the validator is offline it will also receive penalties.
The average block time on Harmony is 2 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.