NEAR is a community run protocol that allows developers to build functional applications on it and is secured by a robust network of hundreds of nodes internationally. The native token on the NEAR protocol is also called NEAR. Providing easy-to-use tools like SDKs, NEAR aims to progress the creation of Web3 systems. Taking the baton from the Ethereum network, NEAR continues to push the conversation around blockchain functionality and implements many of the same technologies that were brought about through Ethereum, such as smart contracts and dApps.
The NEAR protocol uses an iteration of the Proof-of-Stake (PoS) consensus named Delegated-Proof-of-Stake (dPoS) to secure its network.Delegated-Proof-of-Stake (dPoS) is also used on the NEAR blockchain and offers a simpler method of participating in the security of the network through the validation of blocks. All of this contributes to the speed and scalability of the network. One of the core priorities of the NEAR network is to make transactions more rapid and offer a foundation towards interoperability and Web3 development. PoS is essential to making this a possibility as it is far superior in terms of how many transactions can be processed at one time.
Proof-of-Stake (PoS) based protocols require users to validate blocks to the chain in a process called staking. The incentive for this comes in the form of rewards that are given in return for confirming blocks to the chain. It is now the most popular form of consensus algorithm due to its efficiency and eco-friendly approach to block production.
By locking a protocol’s native tokens (ie NEAR) 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 the best way to get rewarded in the crypto space. It is a process that is encouraged and calculated to positively affect the production of new coins within a protocol as the value is derived from the blockchain’s native currency inflation. This is predictable and secure.
By staking NEAR tokens you are also adding to the security and decentralization of the network and using your assets for the overall benefit of the chain as well as gaining a reward at the same time.
To stake NEAR on Kiln you need to follow these simple steps:
NEAR works on a 5% yearly inflation rate, which means only 5% of the total amount of available coins will be released through staking annually. As with most other PoS and dPoS systems, rewards are shared in ratio to your staked NEAR. Staking NEAR is part of a compounding process, meaning your rewards are automatically restaked until you decide to unstake them.
Detailed information about Kiln validators can be found here.
As an incentive for helping to safeguard the network, you can get up to 7.34% GRR* from the total NEAR staked. (Source: https://protocolstaking.info/)
Kiln is one of the most trusted names in validator operation with a great record of staking many different cryptocurrencies such as NEAR. Kiln is the leading enterprise-grade staking platform, enabling institutional customers to stake NEAR and to whitelabel NEAR staking functionality into their offering.
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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.
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.
Rewards are distributed per epoch, which is around 12 hours per epoch. NEAR validators receive 90% worth all yearly rewards, which account for 5% of the total supply annualized.
There is no slashing risk at the moment when staking NEAR but it is planned to be implemented in this protocol at a future time.
To gain a seat and stake NEAR as an operator will be worth the amount of the 100th validator. For those delegating their stake to a validator there is no minimum required to join in the consensus process.
Regardless of whether you stake NEAR yourself, or delegate your coins to a NEAR validator, it requires you to plan the custody of your a
When unstaking NEAR, you will have to wait until four epochs have passed. This is equivalent to around 48 hours, depending on what point in the current period you choose to unstake.
Staking NEAR offers rewards based on the percentage of your stake within a validator pool. Every year, NEAR rewards account for 5% of the total supply of NEAR available. Stakers are allocated 90% of this reward, while 10% goes into the NEAR treasury.Unlike other PoS based systems, NEAR does not include slashing (although this may change in future) therefore there are no outstanding penalties on the NEAR protocol at this time.
The average block time on NEAR is ~1 sec.
To participate in building consensus there is a fee of 35 NEAR that validators need to pay for gas and storage fees. Delegating your NEAR to validators also requires users to pay a fee for the rewards made on processed blocks. Users also need to keep in mind that unstaking takes 4 epochs to be received back in their wallet which equates to around 48 hours.
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.