Rewards Calculation

Lunie offers an easy to understand rewards estimate for each eligible validator on the network. This calculation is based on:

The total annual validator rewards which (voting power * annual provision—a variable defined in the protocol)

The validator’s commission from the annual calculation

Assuming 1 token staked, which will receive a percentage of the total available rewards

How many tokens are already staked to that validator

These rewards figures do not currently represent the compounding effect of rolling rewards into the existing staked balance on a regular basis.

This rewards estimate is only a rough idea of what a token holder can expect over the course of a year and is subject to change. Validators can adjust their commission rates, experience downtime or be slashed for double signing. In these dynamic systems, we recommend re-evaluating where your tokens are staked over time.

Rewards Withdrawal

As time passes and your staked ATOM earn you more and more rewards, you will see your balance of rewards increase in real-time. This is a separate balance from your primary available balance of ATOM. Rewards are not counted towards your staked balance, meaning their accumulated value does not represent what you currently have at stake. Rewards need to be claimed before they can be spent, sent, or staked.

It’s totally fine to let your rewards balance accumulate, but just consider it analogous to a 0% interest bearing piggy bank. If you are seeking to compound the rewards over time, you’ll have to claim the rewards and then stake them to a validator of your choice in two separate transactions.

Re-staking

The 21-day lockup period for those who un-stake their ATOM on the Cosmos network does not inhibit someone who is already staked to change validators instantly. This is called Re-staking. You can instantly begin earning rewards with the validator you switch to however you will still be subject to any penalties the original validator is subject to for the 21 day period.

In Lunie, you can choose a different validator than the one you are already staked with and move any amount of stake from one validator to another.

This feature is different from un-staking, an explanation of which follows below.

Un-staking

Un-staking is a transaction you can make to take your stake back from a validator. Un-staking is subject to a protocol-enforced 21 day period where the transaction cannot be reversed or interrupted. The tokens associated with the un-staking transaction will not earn any rewards or be transferable for the duration of the lock-up period. This lockup period is intended to prevent long-range attacks on the network.

For example, if you have 100 ATOM staked and you un-stake 25 ATOM, the 75 ATOM still staked will earn rewards while the 25 ATOM will earn no rewards for the duration of the lock-up period.

Voting

Voting on the Cosmos Hub is an exercise in on-chain governance where the community of developers and token holders come together to propose new ideas and implementations of those ideas to help move the network forward. Any token holder with staked tokens is eligible to create a proposal, deposit on a proposal, or vote on a proposal.