Introduction to Staking v0.1
Overview
Welcome to ARPA Staking - a gateway to bolster the robustness and decentralization of the ARPA network, while also rewarding our active participants.
Staking your ARPA tokens is more than just a passive investment. It is an active contribution to the network's fortification against potential threats, promoting a resilient and distributed ecosystem. Moreover, it encourages wider participation, preventing any single entity from gaining excessive control over the network, and ensuring our commitment to a decentralized and reliable system.
Participating in staking also positions you at the heart of the ARPA community. As an early adopter, you become an integral part of our network's growth, wielding the power to shape its future.
Why Staking Matters
Staking is a critical cog in the machine that keeps the ARPA network humming smoothly. It offers incentives to token holders for their contribution to maintaining the network's operational excellence. Stakers, while earning rewards, simultaneously ensure network security, foster decentralization, and assist in keeping the network reliable.
Driving Node Operation: Operating a node is akin to being at the network's front lines, actively shaping its well-being. Node operators participate in the signature-producing process, a key element that upholds the network's security.
Fortifying Security and Robustness: The act of staking is an active commitment to network safety. Staked ARPA tokens serve as a guarantee for good behavior, as malicious activities will result in slashing for node operators and damage community members’ rewards as well. More staked tokens and more nodes in operation mean a more secure, reliable, and resilient ARPA network.
Advancing Decentralization: One of ARPA Network's fundamental principles is decentralization. When ARPA token holders stake and run nodes, the network spreads its control, preventing an unhealthy concentration of power. This robust decentralization ensures resilience against attacks.
Fueling Rewards: Staking ARPA tokens isn't a one-way street. It's a mutual relationship where token holders support the network and, in turn, get rewarded for their service. The staking rewards serve as a gratifying way to appreciate and incentivize network participation.
Catalyzing Community Engagement: Staking paves the way for active community participation. As an early staker, you get to be part of the ARPA network's growth. You're not just an observer, but a crucial player influencing the network's future trajectory.
Community Pool
The community pool is a major component of the ARPA Staking Program. Community staking offers an easy pathway for those who prefer not to run a node. With the community pool, staking becomes more accessible, and there's no need for hardware investment. Whether you're a novice or a pro, you can contribute and benefit from the growing ARPA network.
To make things smoother, we've introduced auto-delegation for the community pool in the v0.1 phase. As we continue to grow and refine our staking program, the goal is to make it increasingly decentralized, allowing participants to manually select the nodes they want to delegate to in future versions. This will provide additional flexibility and autonomy to our community while maintaining the simplicity and fairness offered by auto-delegation.
Hassle-free Staking: For those who are more comfortable avoiding the intricacies of node operation, Community Pool Staking offers a simpler alternative. We've designed it to be intuitive, easy to use, and, most importantly, convenient.
Reward Distribution: A monthly allocation of 1.5 million ARPA tokens is reserved for the community pool. These tokens are divided among stakers based on their respective contributions relative to the pool's total.
Growing Opportunities: The pool's total cap will not remain static. In the first month, it starts with 50 million tokens, which increases by an additional 10 million tokens every subsequent month.
Cap per Address: We're focused on ensuring equitable opportunities, and to that end, we've limited the staking amount to 2.5 million ARPA per address. This cap makes room for more participants and prevents an undue concentration of rewards.
Flexibility: You have the power to stake or claim rewards at your convenience, but please be mindful, however, that unstaking invokes a 14-day unlock period before you can claim your tokens.
Running a Node
Operating a node is a more engaged form of participation in the ARPA network. As a node operator, you contribute significantly to the network's security and reliability. A minimum staking requirement of 500,000 ARPA applies to run a node. Node operators get to receive 5% of the community’s total staking reward due to the auto-delegation mechanism in staking v0.1, claimable upon exiting the network.
Slashing and Chilling in Staking v0.1
In order to maintain the network's integrity and robustness, certain measures are put in place. Slashing and chilling are two such mechanisms that regulate the behavior of node operators.
Slashing
Slashing is a penalty mechanism wherein a certain amount of staked ARPA tokens or received rewards are deducted from the offending node operator's address in case of malicious behavior or neglect of duties. In staking v0.1, If a node behaves maliciously during the DKG process, it will be penalized by a deduction of 50% of the auto-delegation reward it would have received for that month.
Chilling
Chilling refers to the cool-off period a node has to undergo once it leaves the network. In specific, if a node operator chooses to exit the network, they will have to wait for a chilling period of 7200 blocks before they can rejoin. This ensures stability in network operations and discourages erratic node behavior.
Staking Contract Addresses
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