NCOG relies on a ProofofStake (PoS) consensus algorithm, enabling you to participate in transaction validation and network security by staking your NEC tokens. Staking on NCOG rewards you with additional NEC tokens without requiring specialized hardware. You can conveniently stake directly from your phone or PC, maintaining complete control over your staked tokens while they remain in your wallet. Unstaking allows you to freely access your funds whenever needed.
Staking Parameters: #
- Minimum Stake: 1 NEC
- Minimum LockUp Period: 0 days (base reward rate)
- Maximum LockUp Period: 365 days (maximum reward rate)
- Unbonding Time: 7 days (the duration between un-staking and fund availability)
- Delegation Fee: The network imposes a fixed 15% fee on staking rewards, transferred from stakers to validators for network maintenance.
Delegation Fee Illustration: #
For instance, if you earn a 10.00% reward on a stake of 1,000,000 NEC, your annual reward would be 1,000,000 0.1 (1 0.15) = 85,000 NEC.
How to Stake: #
- Go to the “Staking” section on the menu.
- Select “Delegation.”
- Choose the amount of NEC to stake and a validator. Additional information about validators is available upon selection.
- Thoroughly research validators. While they cannot directly access your funds, malicious actions could impact your staked tokens.
- Select your preferred lockup period.
Tools: #
- Reward Calculator: Estimate potential rewards based on staking amounts and durations.
- Wallets: Utilize compatible wallets supporting NCOG staking functionalities.
FAQ #
1. Are my tokens SAFE when I stake?
Yes. Nobody except you will have access to your tokens. Make sure not to lose your mnemonic phrase or private key.
2. Can I lose my tokens when staking?
If you stake to a validator node that acts maliciously, you can lose all your staked tokens. You must choose the validator node wisely and make sure they’re reputable. Slashing delegators as well, instead of only validators, is an essential part of network security. It makes it costly for a set of bad actors to take over the majority of the network.
3. How do I choose a reputable validator?
Most validators for NCOG have active communities, websites, and Twitter accounts. Do your own research and ask around in the community; they will be able to help you.
4. Can a validator run away with my funds?
No. In any case, a validator does not have access to any other tokens than their own. However, if a validator acts maliciously, all the funds staked to that node can be lost.
5. What happens if a validator goes offline?
If a validator node goes offline, it stops receiving rewards since it’s not helping secure the network anymore. When it comes back online, the rewards resume.
6. Can I withdraw my delegation if a node goes offline?
Yes, you can.
7. Can I re-stake/increase my delegation?
Yes. By selecting “claim and restake,” you can restake your rewards. However, with Fluid Staking, you cannot increase an existing delegation by adding more NEC. In that case, you’ll have to create a new one.
8. What’s the difference between claiming rewards and claiming and restaking?
Claiming rewards will withdraw all pending rewards to your wallet. If you claim and restake, you’ll be able to compound the rewards at the same conditions as your initial delegation. For example, if you locked up your tokens for one year for the maximum APY, you’ll benefit from the same APY even if you restake later on during the lock-up. Conversely, if you claim your rewards and want to stake them, you’ll have to create a new delegation.
9. Can I unlock my delegation before the lock-up period ends?
Yes, you can. However, you’ll pay a penalty for doing so. Since your rewards are always unlocked and withdrawable, the penalty will come off your staked amount. If you unlock earlier, regardless of how much of the lock-up period is left, you’ll only receive half of the base rewards; the additional rewards will be burned. In any case, you will never end up with fewer tokens than you delegated.
