Guide To Staking

VLX staking 101

Q. What is staking?

Staking is the process of lending your VLX to the Velas network. Conceptually, you can think of it as “lending” your VLX to a validator, who in turn operates a node of the network. These nodes do all the validation work on the Velas network and are essential to transaction processing and the operational health and security of the system. In return for “lending” your VLX, you will be rewarded with VLX as the validator shares a portion of the transaction fees with you.

Q. Which validator should I choose?

Distribution: Always spread your VLX across multiple validators. The internet is sometimes flaky, servers do sometimes fail… so don’t have all your eggs in one basket!

Decentralization: Success for Velas is a distributed and decentralized validator network. We do NOT want all the stake concentrated with a few validators. Nor do we want a high percentage of validators using the same data centers, the same cloud providers, or even in the same countries. Do your part to avoid concentrating all the staked VLX with a few big validators

Performance: take note of validator performance. Some percentage of skipped slots is normal, but avoid validators with higher than average skipped slots.

Rewards:Take note of the validator commission. Lower commission is in your favor as the validator shares a larger portion of the transaction rewards with you. However, beware of super low commissions without any significant amount of stake as that might reduce the validator’s motivation to invest properly in performance and reliability

Security: Does the validator provide any confidence in their ability to secure the validation node and keep your VLX safe?

Velas Staking Docs
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