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1% FLAT FEE
OUR DELEGATION ADDRESS
Q: What is the current fee?
A: The current fee is 1% of rewards.
Q: What is delegation?
A: The Cosmos network uses Tendermint BFT as its consensus mechanism. Validators, like miners in proof-of-work (PoW), are responsible for creating the blocks in the blockchain, and are rewarded through newly issued ATOM. By delegating your ATOM to a validator, they can create blocks on your behalf, while returning a portion of rewards to you.
Q: Can I lose my ATOM? What are the risks of delegating?
A: If the delegator has their stake slashed from malicious double baking (large slash) or for being offline for too long (small slash), delegators may also lose a portion of their staked ATOMs. However, you are still in full control of your ATOM tokens and can withdraw your rewards whenever you want. You are not dependent on the validator to pay out rewards.
Q: Can I run a validator?
A: Cosmos has a fixed number of validators that earn rewards. The current number is set to 125. This means that only the top 125 validators in terms of voting power (total delegated stake) can earn rewards. To reach the top 125 in the validator set, you need about 1100 ATOM currently. You also must set up a stable node to avoid getting slashed.
Q: Why delegate?
A: To earn a portion of the protocol rewards and to participate in protocol votes via your validator. The Cosmos network has ~7% inflation per year to reward validators for constructing blocks. To avoid dilution of your ATOM relative to the total ATOM supply, you must run your own validator or delegate.
Q: When can I expect payouts?
A: In Cosmos, the rewards must be withdrawn by the delegator. This can be done at any time through your wallet or the command line.
Stake House LLC