Akash Network is a Distributed Peer-to-Peer Marketplace for Cloud Compute and the DeCloud for DeFi. The Akash network makes decentralized cloud possible by connecting those that have computing resources to lease, with those that need the computing resources to use. Built on the Cosmos SDK, Akash network enables developers to build by providing a decentralized, efficient and lower-cost application deployment alternative compared to the other centralized providers. Akash Network's native token, AKT, grants holders the right to vote on proposed network changes and earn rewards for helping secure the network.
Why should I stake my AKT?
Staking is the process of locking up a digital asset (AKT) to provide economic security for a public blockchain, therefore staking your AKT helps secure the PoS Stargaze network. Further, most PoS blockchains are initially inflationary in nature, so staking your AKT prevents you from getting inflated out of your position as you earn rewards for helping secure the network and validate transactions. Lastly, you can participate in network governance.
- Secure the network – With AKT, you have the power to contribute to the security and governance of Akash network through staking and voting on governance proposals.
- Earn rewards – When you stake to a validator, you are contributing to the security of the network and are rewarded with AKT through staking rewards.
- Vote for the future – Staking AKT allows you to vote on governance proposals and contribute to making decisions on the future and direction of the network.
What happens when I stake my AKT?
As Akash Network utilizes a PoS consensus mechanism, you can delegate an amount of AKT you hold to a "validator", making you the "delegator". Validators on the Stargaze blockchain (and most other PoS blockchains) validate the network by approving transactions. The more AKT a validator holds the more powerful they are and the more "vote" the have in the network, which allows them to validate more transactions, thus earning more rewards. By delegating your AKT, you trust the selected validator to be a good network participant. From the earned rewards, the validator gives a certain percentage (stipulated by the network) back to the delegators that have delegated (staked) their AKT to them.
That's how you earn rewards.
How much can I earn from staking my AKT?
At the time this post was published, the APY (Annual Percentage Yield) for staking AKT is 80%.
For the most up-to-date rewards rate, you can check out the Steakwallet app.
What is the minimum amount of AKT I can stake?
To stake AKT, a minimum of 0.05 AKT is required. This ensures you can stake and also pay the Akash Network network transaction fee. You should always make sure to have enough AKT available to pay for network fees, as all blockchain interactions (such as sending a transaction, staking, unstaking, or interacting with other dApps) require them.
How do I stake my AKT?
When you stake your AKT, you are able to choose how much of your AKT you want to delegate to the validator. You can stake any amount of AKT, for which you immediately start accumulating rewards. You will not be able to use the staked AKT for anything else or sell them during the period the AKT are staked.
Make sure you have enough AKT in your wallet to pay for network transaction fees.
Please note: You will need to manually claim your rewards and re-stake them to earn the maximum possible rewards. More on claiming your rewards below.
Which validator is my AKT staked to?
Currently, if you stake your AKT with Steakwallet your stake gets delegated to validators run by Figment. Figment is a reliable partner and one of the most trusted validator providers in the industry. We plan to offer more optionality in the future.
How do I unstake my AKT?
When you unstake your AKT, you can decide on the amount you want to unstake. Once you confirm the amount, your AKT will now be "unbonding" from the validator. This process takes 21 days, during which your unstaked AKT is not earning any rewards. When you unstake your AKT, any unclaimed rewards you may have will be auto-claimed.
Please note: When you unstake AKT from any given validator, you can unstake at most 7 times in a 21 day period. If you try more, the unstake will fail. You must wait for one of the previous unstaking entries to expire.
When will I start earning rewards?
When you start staking your STARS and the delegation is confirmed, you will start earning rewards on the staked amount instantly.
How do I claim my staking rewards?
On Cosmos SDK based blockchains, you need to manually claim earned rewards. Unless you have enough AKT to cover network fees for claiming your rewards, you will need to wait until you have earned enough AKT to cover the network fee.
On Steakwallet, there is a "Claim Rewards" button right below your staked balance that shows your earned rewards available for claiming.
Does Steakwallet take a cut of my rewards or charge a fee?
No. Steakwallet never charges a fee on your staking rewards.
Is AKT staking safe?
Given that you always maintain custody of your assets (as Steakwallet is non-custodial), you always remain in full control.
While staking AKT is relatively safe, and while we work together with Figment (one of the most reliable validators in the industry), there's always a risk of slashing. If a slashable event happens, you can lose a portion of your staked AKT.
There are two ways you can be slashed:
- If you delegate to a validator that is offline for over 20 hours (assuming a 7.22s block time), you will lose 0.01% of the tokens you have delegated to that validator.
- If you delegate to a validator that signs the same block twice with the same key, you will lose 5% of the tokens you have delegated to that validator.
However, this is a very rare occurrence. Staking is one of the safest way to earn rewards in crypto.