What is staking?
With staking, you buy a cryptocurrency in order to lock it up (stake it) in a smart contract. Once your stake is locked up, you vote to approve transactions (in our case, you don’t actually have to “vote” – it happens automatically). In exchange for approving valid transactions, the network of the cryptocurrency rewards the staker with a staking reward.
Where can I get tokens to stake?
If you live in the U.S., you can buy FET tokens at crypto.com. Other institutions s.a. coinbase.com might soon offer FET as well. If you live outside the U.S., you can buy FET at binance.com. Please check the Fetch.ai website for more buying options.
What is FET?
FET is the utility token of the Fetch.ai blockchain. Utility tokens are designed so programmers can build software around or in them and users can interact with the software using the tokens.
Are there fees for staking?
A percentage of the staking rewards are used to cover the costs of operating the validator node hosting infrastructure and to keep it secure. We retain 9% of the rewards for that purpose.
Is staking safe?
Staking cryptocurrencies is an efficient way to earn passive income while participating in the world of digital currencies. Staking is much easier than mining or trying to time potential airdrops to accrue coins.
We only support non-custodial delegation, where we have no control over your assets. In practice, you are locking your tokens on a smart contract which grants us only working right, but no transfer right. In other words, your assets remain yours at all times.
In case of misbehaviour by a validator operator, part of all delegated FET can be slashed (destroyed). Therefore it is imperative that you delegate your FET to a validator you trust.
What is a Validator?
Validators run the infrastructure: Validators, like STAKING LAND, are special blockchain nodes responsible for the provision of infrastructure as well as proposing and validating new blocks and appending them to the blockchain. Hence, together with other validators, they ensure the blockchains’ security by monitoring its accuracy, establishing validity, guaranteeing availability, and provisioning the infrastructure for it to run on.
Validators earn staking rewards & fees: For their work, validators are rewarded in the form of block rewards & transaction fees. In order to participate in securing the network and to be paid for this service, validators are required to lock up collateral “stake” which can be forfeited (i.e. “slashed”) programmatically if their actions break the programmatic rules that define the blockchain protocol which they secure.
What is a Delegator?
Delegators contribute to the security of the blockchain: The right to validate and add, hence, to secure the validity of the blockchain, is attached to every Proof-of-Stake (PoS) token. Token holders who do not want to act as a validator, but still want to contribute to the blockchain’s security and earn rewards, can delegate the rights contained in their tokens to a validator of their choice. These token holders are called delegators and can be considered as a validators’ customer.
How Do I Earn Rewards?
Delegators earn a return on their assets: If you stake your tokens with STAKING LAND, you are a delegator and are entitled to receive rewards for the delegation of your tokens. The amount of rewards a delegator can earn through the services of a validator is a function of the validators’ total rewards and the ratio between the size of the holder’s own stake and the total stake of the validator. For their services, the validators charge a fee on the token holder’s rewards.
How much can I stake on the Fetch.ai Mainnet?
The bridge is limited to a certain amount of transactions and they are:
- Months 1–2, March 31st to May 31st, 2021: 60 million FET
- Months 3–4, June 1st to July 15th: 120 million FET
- Months 5–6, July 16th to September 30th: 250 million FET
- Months 6+, October 1st onwards: Replacement of the current bridge with Gravity bridge (open)
Please keep this in mind before you start staking.
How is the current APR calculated?
Calculated as per: Yearly inflation* (divided by) Total FET Staked
*Yearly inflation is calculated: (0.03 * Market Cap) divided by Price.
Can I send my tokens directly to the Cosmostation Wallet?
No, you cannot. We request you to use only Metamask and follow the steps outlined above. If you send your tokens directly, they will not appear on your Cosmostation wallet and they cannot be recovered under any circumstances. Therefore, it is in your best interest to interact only with Metamask.
Once Fetch.ai announces officially that exchanges are listing native FET token, you will be able to send your FET tokens directly to your Cosmostation Wallet, without using Metamask or ETH.
What is the lock in period once I have staked my tokens on Fetch.ai Mainnet 2?
The lock in period is 21 days.
What fees and limits on transferring tokens apply?
- ERC-20 to Native: Free (plus Ethereum transaction fee)
- Native to ERC-20: 50 FET (to cover Ethereum Gas)
- Upper Limit: 1 million FET (per transaction)
- Lower Limit: 100 FET