About FIO Staking

Overview

FIP-21 is introducing FIO Staking, an on-chain program which rewards users for participating in blockchain governance.

Known issue with unstaking

In certain cases users have encountered the following error: cannot emplace locks when locks pre-exist. The workaround is to transfer a small amount of FIO (1 FIO will work) from the account to another account using /transfer_tokens_pub_key. After the token transfer, unstake will work.

How FIO Staking works

High level

User has to vote, proxy, or auto-proxy their FIO Tokens.
User decides what amount of their FIO Tokens to stake.
User stakes FIO Tokens, which are now locked and not spendable until unstake + 7 days.
25% of all FIO Chain fees collected plus daily mint is redirected to a pool to be distributed among all stakers.
User decides what amount of their FIO Tokens to unstake.
User unstakes FIO Tokens and they receive the original staked amount plus their share of rewards.
Unstaked tokens are locked and are unspendable for a period of 7 days.

FIO Staking activation and early participation

The staking rewards are computed in such a way that the earlier you stake the higher the reward earning potential. To ensure that early stakers do not get an unfair advantage over others staking, the concept of activation date has been built into staking.

After staking launches on Mainnet (planned for January 2022), staking rewards will accrue, but users who unstake before the activation date on 02/22/2022, will only receive their principal and not their share of staking reward.

Integrators are encouraged to launch staking integration before the activation date to offer the greatest benefit to their users.

Integrator incentive

FIO Staking offers a new incentive to integrators which lets them earn 11% of the staking reward paid out to their users. When the user unstakes their FIO Tokens, the staking reward is computed and 90% of it is paid out to the user staking. If a TPID was supplied in the unstake call, the remaining 10% (or 11.11% of what was paid to the user) is credited to that TPID. If TPID is not supplied, that amount remains in treasury and increases staking reward for all remining stakers. (Reference the FIO Staking Developers Guide for assistence with integrating staking.)

Resources

Looking for a non-technical guide to staking? Checkout FIO Staking blog post