ICX Staking FAQs (Frequently Asked Questions)
What is staking?
Staking is a mechanism by which a Proof-of-Stake (PoS) cryptocurrency holder locks their cryptocurrency for a period of time to validate transactions. Users can delegate their cryptocurrency to teams that operate validating nodes. These validation nodes then use the cryptocurrency that is delegated to them to vote and validate transactions. In return, those who choose to stake are typically rewarded with cryptocurrency rewards at a specified percentage rate.
What is a P-Rep?
P-Rep is short for Public Representative on the ICON network. P Reps propose and vote on ICON policies, Governing the ICON network. Equally important, P-Reps also run nodes to validate transactions and produce blocks on the ICON network.
When does ICX staking start?
Staking on ICON Network takes place in 2 phases:
The first phase begins on August 26th. This phase consists of a pre-voting period, in which ICONists can stake their ICX through the ICONex wallet and vote for P-Rep candidates. During this period, a pool of ~3 million ICX will be released by ICON Foundation for pre-voting rewards (actual rewards are based on the percentage of the total supply of ICX that is staked).
The second phase begins a month later, on September 26th. This phase marks the decentralization of the ICON network as the top 22 P-Reps (in terms of votes) with taking their positions as block producing P-Reps. These P-Reps will be elected on-chain and will run ICON nodes and participate in ICON Governance. These top 22 P-Reps must have a minimum of 0.2% of the total supply of ICX in votes in order to be elected. If there are not 22 P-Reps who meet this criteria, then decentralization of the network will wait until this criteria is met.
What is the reward for staking?
Voters will receive annual rewards of 6% to 36%, depending on the total amount of ICX that is staked in the network. The ...