All about staking on Blockdaemon
First off: What is staking?
What IS staking: Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Pricing for staking relies on a few parameters. These are values like:
1. Minimum or maximum staking requirements (different per protocol)
2. Whether you wish to stake to Blockdaemon’s staking pool or to run your own validator(s) (or a combo of each)
3. Rewards-based or USD per validator node per month (safer in a Bear market, less returns in a Bull market)
Costs and Rewards of Staking
There are many Proof of Stake blockchains in existence today and Blockdaemon supports all of the top ones. While almost all of them offer staking rewards to delegators, validators, and other participants in the ecosystem, the difference in reward amounts can be large. The ROI on running a staking node can vary based on factors such as machine performance, self-bonded stake, delegator stake, and overall performance of the network.
Blockdaemon is able to offer you a variety of options when it comes to operating staking nodes, however, we cannot guarantee any specific return within any network regarding a node you operate.
*In general, you can expect costs associated with running the node to start at around $300/mo/node (to help you calculate your cost + expected yield + desired ROI).
You can view the full list of protocols we support here on our marketplace: https://app.blockdaemon.com/bill/marketplace/categories/staking-protocols/
Blockdaemon is an active participant in many Proof of Stake networks. The backbone of our white glove node sales are validators for proof of stake networks. Blockdaemon has years of experience in the space, and has developed several strategies to preserve principal, de-risk validator operation, and guard against downtime and slashing due to double signing.
is frequently employed to ensure a “hot spare” is ready in case a technology failure should take a node offline. Keys may be rotated to the hot spare so that the redundant node comes online as soon as possible in case of a failure. Failovers are manually operated to ensure that the failed machine is fully offline and does not come back online and surprise by double-signing.
is ensured via extensive monitoring, using protocol-native and proprietary tooling. Network connectivity, memory use, CPU use, and so forth are monitored, with automatic alerting that notifies our engineering staff of operation outside of normal bounds. Furthermore, Blockdaemon uses a conservative approach to upgrades -- we are rarely the first to upgrade on a network, and never the last -- to gain insight from other validators and avoid upgrading to problematic software versions.
Guarantees against slashes due to node operator fault
Are available for signed contracts, under specific conditions -- these should be discussed with business development. If a validator is slashed due to circumstances in Blockdaemon’s control (for example - uptime, hardware failure, failure to upgrade, networking hardware outages), Blockdaemon will refund the slash within certain guidelines. If you’re curious, please discuss with business development; this guarantee is made only to certain customers.
If you are interested in getting more specifics about running a staking node, drop us a line.