Juno is an open source platform for interoperable smart contracts which automatically executes, controls or documents a procedure of relevant events and actions according to the smart contract. These interoperable smart contacts are usable across multiple networks via the inter blockchain communications protocol (IBC). The Juno blockchain is built using the Cosmos SDK.
Staking is the process of locking up a digital asset (JUNO) to provide economic security for a public blockchain. You can learn more about staking JUNO in its official documentation.
What is the Juno Network?
The Cosmos ecosystem is based on the Inter Blockchain Communication Protocol (IBC), which allows for an interoperable base layer 0 to now be used to transfer data packets across thousands of independent networks (blockchains) supporting IBC. Juno evolved from a community driven initiative by Cosmos ecosystem developers, validators & delegators with the shared vision to create the world's first sandbox environment to improve on the deployment of interoperable & cross-chain smart contracts via a dedicated sister Hub.
As Juno was built by ATOM holders, 100% of tokens were distribued to ATOM stakers & holders. As such, Juno is a decentralized effort to provide a sister hub to the Cosmos Hub with the primary purpose being to offload smart contract load to a designated zone while at the same time bringing utility back to the Hub. Juno smart contracts can interoperate with all IBC enabled networks, regardless of wasm support on external networks.Juno is also the permissionless neutral home of CosmWasm interoperable smart contracts and the InterWasm DAO. CosmWasm, enables WebAssembly (WASM) virtual machines (VMs). Adding WebAssembly to the Cosmos SDK allows software written in many languages to run securely on a blockchain.
Juno was developed using the Cosmos SDK and agreement on the network is reached via Tendermint BFT consensus – thus the staking mechanics of JUNO are very similar to Cosmos' native asset ATOM. Staking rewards in the Juno ecosystem are distributed to staked JUNO in two ways:
- Transaction fees - transaction fees collected on the Juno Network are distributed to staked JUNO.
- Newly distributed JUNO - New JUNO created through the network inflation is distributed to JUNO stakers each block over the first 12 years of the Juno Network operation.
Why should I stake my JUNO?
Staking your JUNO helps secure the Proof-of-Stake (PoS) network. Further, most PoS blockchains are initially inflationary in nature, so staking your JUNO prevents you from getting inflated out of your position as you earn rewards for helping secure the network and validate transaction. Lastly, you can participate in network governance:
- Secure the network - With JUNO, you have the power to contribute to the security and governance of the Juno Network through staking and voting on governance proposals.
- Earn rewards - By staking to a validator, you are contributing to the security of the network and are rewarded with JUNO through staking rewards.
- Vote for the future - Staking JUNO grants the wallet owner the right to vote on governance proposals and contribute to making decisions on the future and direction of the network.
What happens when I stake my JUNO?
As Juno utilizes a Proof-of-Stake consensus mechanism, you can delegate an amount of JUNO you hold to a "validator", making you the "delegator". Validators on the Juno blockchain (and most other PoS blockchains) validate the network by approving transactions. The more JUNO 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 JUNO, 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 JUNO to them.
That's how you earn rewards.
How much can I earn from staking my JUNO?
At the time this post was published, the APY (Annual Percentage Yield) was: 80%.
For the most up-to-date rewards rate, you can check the Steakwallet app.
What is the minimum amount of JUNO I can stake?
To stake JUNO, a minimum of 0.05 JUNO is required. This ensures you can stake and also pay the Juno network transaction fee. You should always make sure to have enough JUNO available to pay for network fees, as all blockchain interactions require them (such as sending a transaction, staking, unstaking, or interacting with any other dApps).
How do I stake my JUNO?
When you stake your JUNO, you are able to choose how much of your JUNO you want to delegate to the validator. You can stake any amount of JUNO, for which you immediately start accumulating rewards. You will not be able to use the staked JUNO for anything else or sell them during the period the JUNO are staked.
Make sure you have enough JUNO 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 JUNO staked to?
Currently, if you stake your JUNO 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 JUNO?
When you unstake your JUNO, you can decide on the amount you want to unstake. Once you confirm the amount, your JUNO will now be "unbonding" from the validator. This process takes 21 days, during which your unstaked JUNO is not earning any rewards. When you unstake your JUNO, any unclaimed rewards you may have will be auto-claimed.
Please note:When you unstake JUNO 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 JUNO 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 JUNO to cover network fees for claiming your rewards, you will need to wait until you have earned enough JUNO 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 JUNO staking safe?
Given that you always maintain custody of your assets (as Steakwallet is non-custodial), you always remain in full control.
While staking JUNO is relatively safe, and while we work together with Figment as they are 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 JUNO. However, this has not happened on the Figment validator in all its years of existence.
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.
For a step-by-step guide on how to stake your JUNO via Steakwallet, please click here.