Staking
Staking is a fundamental aspect of the Sei blockchain, enabling network security and consensus through a delegated proof-of-stake (dPoS) mechanism. By participating in staking, both validators and delegators play a critical role in maintaining and securing the network, ensuring its long-term stability, performance, and success. PoS chains rely on staked economic value rather than computational power, leading to a more energy-efficient and scalable system. Engaging in staking allows developers and users to contribute to the health and growth of the Sei ecosystem and participate in governance decisions by voting on proposals.
In a dPoS system, token holders secure the network by delegating their tokens to validators. Validators produce new blocks and validate transactions. In return for their support, delegators earn a portion of the staking rewards. A validator’s weight is based on the number of tokens delegated to them plus their own stake.
The Sei protocol incentivizes validators and delegators with staking rewards from gas fees and genesis token unlocks. ALl rewards are distributed to delegators proportional to their delegation, and the validator keeps a percentage of this as commission. Users can view a validator’s commission rate on the Sei App, or by querying the validator information on-chain.
How to Stake
Staking on Sei can be done through the Sei App, via the seid
CLI, or even
through API calls.
- Sei App: Staking
- seid CLI:
seid tx staking [command] [flags]
- REST/RPC:
GET/POST /staking/*
Key Concepts
Delegation
Delegating tokens to a validator allows you to earn a portion of the staking rewards. By delegating, you add to the validator’s total stake, which helps secure the network.
Delegators
Delegators are users who stake their Sei tokens to a validator, contributing to the validator’s total stake. Delegators earn a portion of the transaction fees as staking rewards. Staked Sei remains under the control of the delegator and cannot be traded freely during the staking period.
Un-delegation
Un-delegation is the process of withdrawing your staked tokens. This involves a 21-day un-bonding period during which the tokens are not earning rewards and cannot be transferred. After the un-bonding period, the tokens are returned to your wallet and are available for transactions.
Re-delegation
Re-delegation allows you to move staked tokens from one validator to another without undergoing the un-bonding period. When re-delegating, the tokens are instantly moved, but the new validator is barred from further re-delegations for 21 days to ensure stability and prevent abuse. Each account can re-delegate a maximum of 7 times simultaneously, with a re-delegation not considered complete until the 21-day period is up.
Bonding
Bonding is the process of committing your Sei tokens to a validator. This can be done through delegation. The tokens are locked and contribute to the validator’s stake, starting to earn rewards immediately.
Un-Bonding
Delegators can un-bond or un-stake their Sei tokens, initiating a 21-day period during which the tokens do not earn rewards and cannot be transferred. After this period, the tokens return to the delegator’s wallet and become available for transactions. Users can re-delegate to another validator instantly without waiting for the un-bonding period to end.
Jailing
To ensure network uptime and overall security, validators must meet strict standards and consistently participate in the consensus process. Jailing can occur if these standards are not met. Jailed validators are excluded from participating consensus for a period and will not generate rewards during this time.
Slashing
When a validator is jailed, they may also be slashed. If slashing occurs, the network will burn a portion of total delegations for that validator, including their delegator’s staked tokens.
Slashing occurs under the following conditions:
- Double Signing: Signing two different blocks with the same chain ID at the same height.
- Downtime: Being unresponsive or unreachable for a period.
- Missed Votes: Missing votes in consensus.
Validators monitor each other and can submit evidence of misbehavior. If confirmed, the misbehaving validator will have a portion of their funds slashed and will be jailed.
Parameters
Slashing parameters are determined through governance and are network-enforced. They can be queried through the slashing module .
Common Questions
What happens if my validator gets slashed?
If your validator gets slashed, a portion of both the validator’s and your staked tokens will be forfeited. This penalty encourages the selection of reliable validators and active monitoring of their performance.
For more details, see Slashing.
Can I lose my staked tokens?
If the validator you have staked with is jailed for inactivity or misbehavior, they may be slashed. You will lose a portion of your staked tokens.
For more details, see Jailing and Slashing.
How are staking rewards calculated?
Staking rewards are calculated based on the total amount of Sei staked and the validator’s performance. Rewards are distributed proportionally to the amount staked by each delegator.
For more details, see Delegators.
Can I change my validator without un-bonding?
Yes, you can use the re-delegation feature to move your stake from one validator to another without waiting for the un-bonding period to end.
For more details, see Re-delegation.