Stake Osmosis 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.

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.

Validators and delegators receive OSMO rewards after every epoch (daily). OSMO rewards are not compounded and require re-delegation with each block reward you receive.

No, there are no compounding rewards when staking Osmosis, they will need to be restaked with every time they are received.

After 2 hours of downtime, validators can be ‘jailed’, preventing validating blocks until unjailed. Slashing for double signing is 5% of an Osmosis validator’s stake.

There is a minimum staking amount of 1 OSMO to validate blocks and a 0.1 OSMO transaction fee to delegate your stake.

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

There is a 14 day unbonding period for Osmosis.

For every slot, the Osmosis 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 Osmosis is ~ 6 sec.

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.

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