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Staking Rewards
For more information about staking in general, please see this section.
Validators on the Kujira chain have their own unique commission rates, which represent a percentage of staking rewards set aside to cover the costs of running and securing the validator and the Kujira network.
To illustrate how commission works, let's consider a validator with a 5% commission, 1 million KUJI in total delegations, and a 1 year forward-looking APR of 10%. On the Kujira chain, staking rewards are paid out in the tokens used on the chain (though they can also be converted to KUJI when withdrawing). Using these assumptions, we can estimate that this validator would earn approximately 1 million KUJI * 10% rewards * 5% commission = 5000 KUJI per year in revenue if these conditions remained constant.
Now let's say you are a delegator staking 1000 KUJI with this validator. In a year, you would earn approximately 1000 KUJI * 10% rewards * 95% (the portion not taken as commission) = 95 KUJI.
In general, a lower commission rate means a greater share of staking rewards for the delegator, while a higher commission means more funding for the validator. However, commission is just one factor to consider when choosing a validator. It is also important to consider the validator's technical expertise and any additional contributions they make to the chain. Remember that if a validator is slashed, you may lose a portion of your delegated tokens.
Last modified 9mo ago