Polkadot (DOT) Staking - Figment

Polkadot (DOT)

Polkadot is an interoperability network allowing interacting protocols to benefit from a shared security environment.

Polkadot is often referred to as a ‘metaprotocol’ – a protocol on which other protocols can operate. It facilitates a settlement environment that creates an ease of experience for projects that choose to execute within the Polkadot ecosystem via secure cross-chain message passing (XCMP) between chains and secured consensus on behalf of the validators that verify transactions for connected chains. The terminology used within the Polkadot community is that the relay chain is a ‘Layer 0’ protocol.

Meet With Us to Stake DOT

Validator Addresses

Market Cap

$1.4B

Staking Reward Rate

2.86%

Price

$0.81

Auto-Compounding

No

Reward Frequency

1 Era (Daily)

Activation

24 Hours

Withdrawal

28 Days

Slashing Penalties Enabled

Yes

Why Stake Polkadot With Figment?

Polkadot Staking FAQ

What is the name of the asset being staked?

Polkadot’s native token, DOT, is used to stake, pay transaction fees, and to participate in on-chain governance.

Why Stake DOT?

Initially, DOT is being staked to earn new issuance (“inflationary”) subsidies. It means that the supply of DOT will increase and stakers will capture the newly issued DOT. Generally, you will earn around 14% annually on your staked DOT, but it is subject to change.

Stakers will also capture fees from network transactions, and as Polkadot transaction volume increases, DOT stakers will earn more than just new issuance subsidies. DOT also gives stakers the right to vote on policy decisions on how the Polkadot protocol will operate and distribute treasury funds.

How long does it take to stake and unstake?

From the moment you initiate the unbonding process, it takes 28 days to unstake. During this time you will not earn rewards. When the process is complete, you can transfer/trade your DOT tokens.

When are staking rewards and transfers enabled?

Staking rewards have been enabled with the launch of the Polkadot mainnet on May 26th 2020.

How are rewards disbursed? Are rewards liquid or automatically staked?

Once triggered, rewards on Polkadot may be automatically distributed every era (ie. 24 hours). Figment is never in control of your rewards. However, you will not receive your rewards until a claims transaction is sent, which any nominator may do every 24 hours.

Rewards are not staked automatically, which means you will need to lock and nominate your rewards in order to compound them.

Can I lose potential staking rewards?

Your potential rewards depend upon validator performance. When your validator is down, you will not be earning rewards. If your validator is not performant, your rewards will be reduced.

Can my staked DOT be slashed (seized or destroyed)?

Yes, a portion of your staked DOT can be destroyed if the validator(s) you nominate are involved with too much stake going offline simultaneously or equivocation events (aka double-signing). Validators will be slashed a fixed percentage of their stake and not a fixed amount of DOTs. This means that more DOTs will be slashed from validators with a higher stake. This further incentivizes nominators to choose validators with a lower stake.

Do I maintain custody of my DOT tokens? Who or what controls my staked DOT token?

Figment has partnerships with a number of top-in-class custodians. Please contact support@figment.io for more inquiries. The Polkadot protocol takes control of your DOT tokens while you are staking.

If you unbond your tokens, this process will take 28 days before the protocol returns your tokens to you. While your DOT tokens are staked, you may participate in on-chain governance by voting on different proposals.

How are decisions about the Polkadot protocol made and executed?

Polkadot uses token voting for on-chain governance. Governance proposals are discussed on the forum.