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What are the risks to staking?
What are the risks to staking?

What are the rewards to staking on ShareLedger?

Nan Selene avatar
Written by Nan Selene
Updated over a week ago

Staking SHR earns significant rewards but is not risk-free. SHR delegated to a validator can be partially slashed if the validator misbehaves. Slashing means the delegated SHR are forfeited (burned) without the possibility of recovery. On ShareLedger, two attributable faults can lead to slashing events for the delegated SHR:

Slashing by 0.01% can occur if the validator is offline for too long. Uptime is achieved when the validator signs at least 500 out of the last 10.000 blocks. If a validator does not sign minimum 500 blocks out of the last 10.000, a downtime slash occurs.

Slashing by 5% can occur if the validator signs two different blocks at the same height (double-signing). This fault is harder to anticipate, resulting from bad operation practices or outright malicious intent from the validator operator.

When you delegate your SHR to a validator, select a trusted validator to prevent slashing from these faults. Please note that only fully unbonded (post 21 days) SHR will not be affected by slashing, should it occur.

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