Figment

why stake with figment?

Figment is one of the world’s largest Proof-of-Stake infrastructure providers, with a mission to build a better Internet by increasing usage of the next generation of Proof-of-Stake blockchains.Figment offers token holders a range of benefits, including:Enterprise-grade infrastructure allowing token holders to safely and securely earn yield on their tokens.Industry-leading dashboards detailing rewards earned and protocol-specific information.Industry-leading SLAs and insurance. Figment offers 3 tiers of insurance to protect our clients, our infrastructure, and to reduce the risk of “slashing”

What are the Advantages of Staking?

For long-term token holders, staking offers an opportunity to put their tokens to work and earn rewards, rather than leaving them idle in wallets.Staking also plays a crucial role in enhancing the security and efficiency of blockchains. By staking tokens, token holders help make the blockchain more resistant to attacks and improve its transaction processing capabilities.

What is staking?

Staking is the act of delegating tokens to secure and, in some cases, govern networks. Staking differs from Bitcoin and other Proof-of-Work (PoW) networks that rely on high energy consumption “mining” to secure networks.

What is Proof-of-stake?

While the specific implementations of Proof-of-Stake (PoS) may vary between projects, the core principle remains consistent: users commit their tokens to maintain the blockchain’s security. These staked tokens act as a pledge of good faith, deterring any malicious activities and bad actors reinforcing the protocol rules.PoS is a means to identify who is eligible to participate in consensus, i.e., vote on the state of a network. Broadly, the idea is that a staker will act honestly knowing that some of their tokens can be taken away for misbehavior. Unlike the energy-intensive process of mining

Why does staking produce a reward?

There are costs associated with participating in PoS consensus – hardware,tokens, time, etc – all of these must be compensated to entice participants to engage. Protocols must design their reward system to achieve the minimum staking participation rate. The minimum staking participation rate is somewhat subjective, but is the rate at which attackers are sufficiently discouraged from trying to break consensus; in other words, the gains from attacking the network are more than offset from the losses incurred.

Is staking important?

Arguably, holding a network’s tokens over an extended period gives the holders an interest in the long term health and sustainability of the network, staking makes this explicit and stronger by adding the threat of having tokens away for misbehavior.Beyond aligning stakers with the long term health of the network, increased staking increases the security of the network as the cost to attack the network increases.

Where do my tokens ‘go’?

Your tokens remain on the blockchain, under the control of your private key. Figment never takes custody of your tokens. The delegated tokens are staked or bonded to a Figment-run validator node.

What happens if I want to unstake?

You are welcome to unstake at any time. Unstaking is typically a very simple process, with unbonding periods ranging from 0-28 days. After the unbonding period, your tokens and rewards are available.