How does ICNT staking work?
An explainer for ICNT staking in the ICN ecosystem
Stake ICNT into the ICN ecosystem to power the future of Web3 internet infrastructure. By staking you will help contribute, secure and earn for bolstering the ScalerNodes that provide decentralized hardware resources to a distributed cloud network.
At a glance
ICNT can be staked to ScalerNodes only
ICNT must be locked before staking for a chosen period
ICNT can be staked and unstaked freely during its lock period
Staker will choose a lock period which will apply multipliers to earn rates based on the length of the chosen lock
ICNT staking rewards have 0 claim delay
ICNT will be liquid withdrawable after its lock period has elapsed
Staking Flow
Select ScalerNode to stake to
Input amount to stake
Choose lock period and associated APY
Confirm transaction to lock & stake
Here is the full lifecycle of ICNT:
When ICNT is locked it also locks in a specific APY curve multiplier that defines the earn rate for the ICNT when staked. ICNT cannot be removed from the system during this period and importantly rewards are only earned during periods when the ICNT is staked.
Once staked ICNT can be unstaked and staked again freely if a user wants to change which node it stakes on.
If ICNT's lock expires, then the owner will be able to withdraw that back to liquid ICNT. If the ICNT lock expires while it is staked, it must be first unstaked and then withdrawn.
Lock Period
When staking fresh ICNT, you will need to select a lock period.
The lock period ranges from 1 day up to 48 months. This only applies to how long the ICNT is locked inside the ICN Protocol, it does not affect staking time and users will be able to stake the locked ICNT for as long as they like on any node.
Longer lock periods offer longer commitment times of ICNT to the ecosystem creating a greater level of security for the network, which is rewarded with greater earn rates which reflect the value generated in the network.
Finally after the lock period elapses a user is able to withdraw their ICNT again for fluid usage like transfers. Crucially, if a user keeps his ICNT locked, he will enjoy the same earn rate as his original lock period when staking. Users are incentivized to lock for long periods in order to get higher allocation efficiency per ICNT staked.
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