Overview of Staking on ICON Network

Overview of Staking on ICON Network

You already know all about ICONSENSUS and P-Reps from my last article, if not take a look here.

What is staking?

Staking is a mechanism by which a Proof-of-Stake (PoS) cryptocurrency holder locks their cryptocurrency for a period of time to validate transactions. Users can delegate their cryptocurrency to teams that operate validating nodes. These validation nodes then use the cryptocurrency that is delegated to them to vote and validate transactions. In return, the customers who chose to stake with a particular node are rewarded with cryptocurrency at a specific rate.

I will make an analogy with the bank system. In this case, an individual or organization decides to deposit funds into a bank to receive interest. If you do not deposit money in the bank to receive interest rate, your money will likely devalue due to inflation. Most bank interest rates are lower than inflation, but it is still better than earning 0%. Many banks offer higher interest rates if one is willing to lock up their funds for a longer period of time. These are called Certificate of Deposits (CDs) and are timed deposits that result in higher percentage earned. This time deposit is very similar to how staking rewards are calculated — lock up cryptocurrency for a period of time and be rewarded a percentage.

Why you should vote / stake on ICON Network?

Common Questions:

Q. What’s happen if a node you have chosen is down?

A. Your ICX will be safe. Delegating ICX will be done through signatures using ICONex wallet (through the wallet or you can also use a Ledger hardware wallet). Thus the ICX holder will maintain positive control of the ICX however if the node you have chosen is down then you will not receive rewards during that time as that P-Rep will not be active. That why is it is important to delegate to multiple strong P-Reps, that way you will reduce the risk of missing out on staking rewards.

Q. What is the minimum amount of ICX to stake on ICON Network?

A. No minimum amount — you can stake with as little as 1 ICX.

Q. What is the minimum period of time to lock your ICX to a P-Rep to receive rewards?

A. You must keep your ICX delegated to a P-Rep between 5 to 20 days, depending on the percentage of the network that has been staked. The higher the percentage of the network staked, the fewer the days you need to un-stake.

Q. When the staking will start?

Staking on ICON Network will take place in 2 phases:

- The first phase in August when will consist of a pre-voting period, followed by on-chain voting in September. During this period, a pool of ~3 million ICX will be released by ICON Foundation for pre-voting and rewards will be roughly 15% annually (divided by the time period).

-The second phase will start in September and will consist of on-chain P-Rep registration and voting -this will be the period in which the P-Reps are elected.

As a conclusion, we encourage you to participate in staking on the ICON Network and vote for your favorite P-Rep candidates. Be sure to research and choose your P-Rep / P-Reps wisely, earn rewards and enjoy the ICON Community!

In the next article, we will talk a little bit about ICON Ecosystem.

If you have any questions please contact us: contact@ubik.capital or follow us on Twitter: @ubikcapital or on Telegram channel: ubikcapital

Thank you for your attention, and good luck with your voting!



Ubik Capital is a Proof-of-Stake service provider, validator, and investor.

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Ubik Capital

Ubik Capital is a Proof-of-Stake service provider, validator, and investor.