We understand the Harmony blockchain deeply and provide optimal staking rewards with maximum node uptime. 1Q) How to stake Harmony (ONE)?
1A) For those wishing to participate in staking without running a validator, delegation is the best approach to get involved and earn block rewards. Harmony ONE holders can delegate their tokens to existing validators using the official staking explorer. If the
tokens are delegated to an elected validator, a portion of the block reward earned by the validator will be credited to the delegator. The earned block rewards are stored in a separate reward balance of the delegator, which can be immediately withdrawn to the delegator’s account balance. The block rewards can also be staked again to achieve the compounding effect of staking.
2Q) How much can I expect to earn staking ONE?
2A) Rewards are not fixed for staking participants. They are subject to change based on the performance of the validator and the total number of staked tokens on the network. For estimation, we can consult the following indicative figures:
A constant annual reward of 441M ONE regardless of changes in underlying variables such as block time and total staked %
Transaction fees offset issuance, creating a path to 0 issuance as protocol gains adoption. Under current conditions, around 56% of all tokens are staked. This results in an average return of 11.18% for validators and 10.15% for delegators. For more in-depth information, you can play with the Harmony Staking Calculator (https://harmony.validator.services/) or take a look at this spreadsheet model (https://tinyurl.com/harmonyspreadsheet).
3Q) Why do Harmony Validators have different reward rates?
3A) In Harmony Staking – Validators receive more rewards if they control less stake. By delegating with smaller validators, you can increase your reward rate. You can check the individual return rates for validators here. Furthermore, each provider charges fees (minimum of 5%) for the service (running servers, maintenance, maintaining high uptime), and the rewards are just as high as the performance/uptime of the validator node.
4Q) Can I undelegate or redelegate my tokens?
4A) You can undelegate at any time. Your undelegated tokens will be returned back to you by the end of the epoch. By then, you can simply initiate a new delegation to your preferred staking validator.
5Q) Is there any risk to stake ONE?
5A) There are certain risks associated with Staking on Harmony. Your delegated tokens are also associated with slashing risks of the validator. As a delegator, you should carefully choose validators based on historical performance metrics such as APR, uptime and commission. In case of indifference or indecisiveness, you should distribute your delegations among multiple validators to minimize risk. Furthermore, please consider potential risks such as:
- Account lost: Mnemonic / Private key backup
- Firmware Problems
- Network Centralization
- Price Volatility of $ONE Coins
- Technical Dept
