Staking System Upgrade Begins on June 6!

Staking System Upgrade Begins on June 6!

Exciting news Chromians! We are ready to share the timeline and details of our staking system upgrade.

The transition period between the old and new rewards contract will begin on Tuesday June 6th, with the changeover to the new contract occurring on Tuesday, June 13.

If you are currently staking, no action is required at this time. You will have an entire week from June 6 to June 13 to complete the delegation step in order to ensure that you continue receiving staking rewards.  

Staking Upgrade Timeline

Tuesday, June 6 - Changeover Week
On Tuesday, June 6th, the new staking user interface (UI) will come online.  During the week that follows, stakers will continue earning rewards under the old contract at 25% APR. However, they will now be able to delegate their stake to a provider in preparation for the first rewards epoch under the new system, which begins on Tuesday, June 13.

At the end of the changeover week, outstanding rewards earned under the old contract will be paid out. These outstanding rewards will be distributed automatically, at no cost to the end user.

Tuesday, June 13 - New Staking Rewards System Begins
On Tuesday, June 13th, the first Epoch of the new staking system begins.

Initially, staking rewards will be paid out at 20% APR. This rate is subject to change in the future. In order to receive rewards under the new contract, users must have CHR tokens staked and delegated for the entirety of a weekly epoch.

At the end of each epoch, all stakers who met these requirements will see that their available rewards total has increased. These can be collected at any time using a claim button, similar to the old system. Stakers do not need to claim weekly, they are free to let the rewards accumulate and claim when it is convenient.

For many stakers, their main concern will be making sure that they continuously accrue rewards. Here is a checklist to follow:

  • Keep your tokens staked
  • Ensure you have not requested a withdrawal
  • Between June 6th and June 13, visit the staking page and complete the delegation step

That’s it!

Additional Information - FAQ

If I add more tokens to my staking total, do I start earning rewards on those tokens immediately?
No. You will begin earning rewards on the new total at the beginning of the next epoch.

Do I keep earning rewards after I request a withdrawal?
No. Under the new system, you become ineligible for rewards immediately after entering your withdrawal request.

This means that even if you make this request one minute before the end of a weekly epoch, you lose your rewards for that week. If you are planning to withdraw, it is in your best interest to wait until the beginning of a new epoch to make your request.

What is Delegation?
The act of delegation on Chromia is a vote of confidence for a particular provider. Providers who gain a reputation for consistent uptime and performance will end up with more tokens pledged to them and a result will be called upon to support new dapp chains more often. Alternatively, providers who do not properly maintain their nodes will lose this support, prompting the team and/or community to investigate and potentially remove the provider from the network. Delegation is being rolled out during the Testnet phase because it is important to have the system in place prior to mainnet and to familiarize the community with its basic mechanics.

Important Note: Delegating does NOT give the provider (or anyone else) control of your tokens - they are still held in the same secure and time-tested contract we have used since November 2020, and you are the only person who can withdraw them.

The Evolution of Chromia Staking

As the Chromia Network is built out to mainnet and beyond, further adjustments will be made to the rewards rate and the responsibilities required by our stakers. Ultimately, we must build a staking and governance program that is both sustainable and beneficial to the long-term health of the network.
We hope you will continue to stake with us to support Chromia’s future while benefiting from the rewards of the program. If you have any questions regarding the changes, we welcome you to reach out on our official Telegram channel or our Discord Server.

About Chromia
Modern society runs on data, and every online service you’re using is built upon underlying databases - ranging from your online bank to music streaming and gaming. Chromia is a relational blockchain - a combination of a relational database and a blockchain - making it easy to develop user-friendly decentralized apps for almost any industry, including DeFi, NFTs, gaming, and more.

Website | Discord | Twitter | Telegram | Facebook | Instagram | Youtube