Staking Overview
Staking is how LYTH holders secure the Monolythium network and earn rewards. This guide covers the fundamentals of staking on Monolythium.
What is Staking?
Staking involves locking your LYTH tokens to support network security. In return, stakers receive a portion of newly minted LYTH (inflation rewards) and transaction fees.
Monolythium uses Delegated Proof-of-Stake (DPoS):
- Validators run nodes and participate in consensus
- Delegators stake their LYTH with validators they trust
- Both earn rewards proportional to their stake
Key Parameters
| Parameter | Value |
|---|---|
| Active validators | 53 |
| Unbonding period | 3 days (259,200 seconds) |
| Minimum self-delegation | 100,000 LYTH |
| Reward distribution | Per-block |
| Slashing (downtime) | 0.01% |
| Slashing (double-sign) | 5% |
How Rewards Work
Rewards come from two sources:
- Inflation - New LYTH minted per block (0-8% annually, see Milestones)
- Transaction fees - 10% of fees distributed to stakers (90% burned)
Rewards are distributed proportionally based on stake, with validators taking a commission before distributing to delegators.
Reward Distribution
Block Rewards
│
├── To Validators (based on stake weight)
│ │
│ ├── Validator Commission (e.g., 10%)
│ │
│ └── Delegator Rewards (remaining 90%)
│
└── Inverse Rank Bonus (top validators get slightly less per-stake)
!!! info "Inverse Rank Rewards" Monolythium uses inverse rank-based rewards to encourage stake decentralization. Higher-ranked validators (by stake) receive slightly lower per-stake rewards than lower-ranked validators.
Delegating LYTH
Requirements
- A Cosmos-compatible wallet (Keplr, Leap)
- LYTH tokens to delegate
- Small amount of LYTH for transaction fees
!!! important "MetaMask Cannot Stake" Staking is a Cosmos-native operation. You must use a Cosmos wallet like Keplr or Leap. MetaMask can only perform EVM transactions.
How to Delegate
- Connect your wallet to a Monolythium interface
- Browse the validator list
- Select a validator
- Enter the amount to delegate
- Confirm the transaction
Or via CLI:
monod tx staking delegate <validator-address> <amount>alyth \
--from <your-key> \
--chain-id <chain-id>
Choosing a Validator
Consider these factors:
| Factor | Why It Matters |
|---|---|
| Commission rate | Directly affects your rewards |
| Uptime history | Downtime can result in slashing |
| Self-delegation | Shows validator's own commitment |
| Community presence | Communication during issues |
| Infrastructure | Geographic and provider diversity |
Unbonding
When you undelegate (unstake), your tokens enter an unbonding period of 3 days before becoming available.
During unbonding:
- Tokens do NOT earn rewards
- Tokens can still be slashed if the validator misbehaves
- You cannot cancel the unbonding
monod tx staking unbond <validator-address> <amount>alyth \
--from <your-key> \
--chain-id <chain-id>
See Unbonding for details.
Redelegation
You can move your stake from one validator to another without waiting for the unbonding period:
monod tx staking redelegate <src-validator> <dst-validator> <amount>alyth \
--from <your-key> \
--chain-id <chain-id>
Limitations:
- Cannot redelegate the same tokens again for 3 days
- The tokens are immediately active on the new validator
See Redelegation for details.
Claiming Rewards
Rewards accumulate and must be claimed (withdrawn):
# Claim from specific validator
monod tx distribution withdraw-rewards <validator-address> \
--from <your-key> \
--chain-id <chain-id>
# Claim from all validators
monod tx distribution withdraw-all-rewards \
--from <your-key> \
--chain-id <chain-id>
!!! tip "Compound Your Rewards" Regularly claim and re-delegate rewards to compound your staking returns.
Slashing Risks
Delegated tokens can be slashed if the validator misbehaves:
| Violation | Slash Amount | Jail Duration |
|---|---|---|
| Downtime (missing blocks) | 0.01% | 10 minutes |
| Double-signing | 5% | Permanent (tombstoned) |
Choose validators carefully and consider splitting your delegation across multiple validators.
Staking vs. Providing Liquidity
| Aspect | Staking | Liquidity Providing |
|---|---|---|
| Risk | Slashing, unbonding delay | Impermanent loss |
| Rewards | Inflation + fees | Trading fees |
| Lock-up | 3-day unbonding | Usually none |
| Complexity | Low | Medium-High |
FAQ
Can I stake from MetaMask?
No. Staking requires Cosmos transactions. Use Keplr or Leap wallet.
When do I receive rewards?
Rewards accumulate per-block but must be manually claimed.
What happens if my validator is jailed?
You stop earning rewards until the validator unjails. Consider redelegating if it happens frequently.
Can I stake to multiple validators?
Yes. You can delegate to as many validators as you want.
Is there a minimum stake amount?
No minimum for delegators. Validators must self-delegate at least 100,000 LYTH.