In Q3, we will be transitioning to a new ‘native staking’ system that is hosted on Chromia. While the exact date for the changeover is still to be determined, this article provides all the information necessary to prepare.
Before Native Staking Launches
During this period, we will use the provider list that is in place from the previous Testnet. If you are already staked and delegated, no action will be required on your part. Anyone who begins staking during this period will choose from the pre-existing provider list.
During this period, there will be discrepancies between the provider list and the MVP Mainnet providers. This is expected behavior. Stakers will continue to earn rewards from the ‘old’ staking system until native staking launches.
After Native Staking Launches
After native staking launches, users will have the choice of staking their CHR on three blockchains:
- Chromia (native CHR)
- Ethereum (ERC-20 CHR)
- Binance Chain (BEP-20 CHR)
If you are already staking CHR on one of the EVM networks, there will be no need to withdraw them.
Regardless of the blockchain you stake on, the delegation process will now take place on Chromia. The interface will automatically detect your staked tokens across all three networks, provided that they are staked under the same EVM address and associated Chromia account.
To begin receiving rewards under the new system, you must delegate on Chromia by choosing one of the available mainnet providers. After native staking is launched, rewards will be paid out exclusively as native CHR on Chromia, regardless of which chain(s) you stake on. Users will no longer have to manually claim rewards, as they will be automatically paid out once daily. Rewards can be held as native CHR, or bridged to Ethereum or Binance Chain as desired (gas fees must be paid on the receiving EVM chain when completing the bridging process).
As a brief ‘grace period’, rewards will continue on the old system for the remainder of the changeover week (i.e. if native staking goes live on Tuesday, the old system will pay rewards until Sunday).
This gives stakers a handful of days to complete delegation on Chromia. It also creates a brief window of opportunity for ‘early birds’ to receive double rewards, as they will be earning under the old system and the new system for the remainder of the launch week.
Please note, the 14 day withdrawal waiting period still applies under the new system. Users do not receive rewards during the waiting period.
Claiming of Rewards Earned Under the Outgoing Staking System
After the changeover, the outgoing staking interface will be moved to https://old-staking.chromia.com. Users will have 6 months to claim their outstanding rewards on Ethereum and/or Binance Chain. After this six month period, these rewards will be permanently lost.
Supplemental Staking Rewards
You may notice that rewards under the new system work out to slightly more than 10% APR. CHR staking will continue to reward stakers at 10% for the foreseeable future, but this amount will now be supplemented by a share of the network fees earned by the provider you delegate to. This additional amount is split proportionally based on the staked balances of all the provider’s delegates.
Essential Information from this Article:
- By the end of Q3, native staking will launch on Chromia. The existing system will continue to function until then.
- Under the native staking system, you will be able to stake CHR on Chromia, Ethereum, and/or Binance Chain. However, you must delegate on Chromia. Users will be responsible for completing this delegation step after the changeover.
- Under the new system, rewards will be received as native CHR, and these rewards will be auto-claimed once per day.
- After the changeover, stakers will have a six month window to claim the rewards earned under the old system. After this six month period, those rewards will be permanently lost.
About Chromia
Chromia is a Layer-1 relational blockchain platform that uses a modular framework to empower users and developers with dedicated dapp chains, customizable fee structures, and enhanced digital assets. By fundamentally changing how information is structured on the blockchain, Chromia provides natively queryable data indexed in real-time, challenging the status quo to deliver innovations that will streamline the end-user experience and facilitate new Web3 business models.
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