ATOM PoS Rules:
- ATOM staking has a lock-in period of 60 days.
- Staking is available every day. The period begins 1 day after the initial deposit.
- Gains will be calculated the day after the user purchases the product (Purchase date + 1 day). According to ATOM official PoS rules, any unbonded withdrawal will be payed out after 21 days (No staking rewards earned during this time). Initial deposits + gains will automatically be transferred to users’ wallets after 82 days.
- After 82 days, Cobo user can either withdraw their ATOM or enter the next staking period automatically.
- A minimum of 1 ATOM is required to participate.
- Any ATOM withdrawal will incur a fee of 0.1 ATOM (transferring ATOM from Rewards Wallet to Cloud Wallet).
Penalty for Early ATOM Withdrawal:
There will be a penalty for ATOM withdrawal before the end of the staking period. Users will also lose any rewards generated during the staked period.
In addition, early withdrawals are liable for
- Initial capital penalty of 0.2% if a withdrawal is made before 41 staking days.
- No initial capital penalty if the withdrawal is made after 41 staking days.
For example, Samantha staked her ATOM on May 10th, so the 82-days ATOM staking begins on May 11th. If she were to withdraw any time before or on June 20th, she will be liable to pay the 0.2% initial capital penalty.
However, if she were to withdraw on June 21st (still before the end of the ATOM staking period) she will not have to pay the penalty.
However, Samantha will lose any staking rewards earned during the period in both scenarios.
Frequently Asked Questions (FAQs)
Q: What is ATOM?
A: Cosmos is a Bonded Proof-of-Stake (BPoS) blockchain interoperability project. Cosmos and Tendermint aim to provide a fast and highly scalable consensus protocol and reduce the time and complexity involved in building Blockchain applications, providing a stable interface for popular programming languages. Cosmos comprises a decentralized network of independent, parallel blockchains, each powered by the core consensus protocol, with constituent and derivative blockchains within the Cosmos ecosystem understood as “zones” operating in proximity to the principal. ATOM is the token powering the main Cosmos Hub.
Q: What is BPoS?
A: The BPoS mechanism has the advantage of providing a clear solution to the issue of staking ratios. While it solves this issue, it also means that delegators need to conduct extra due diligence before delegating, and remain active in verifying the performance of their validator. In Cosmos BPoS protocols, there will be a limited number of validators, starting at 100, with selection based on the size of their total stake (own stake + delegations).
Q: How do I stake my ATOM?
A: 1. Store ATOM into your Cobo Cloud Wallet.
2. Under the ‘Finance’ tab, click ont the ATOM PoS plan
3. Choose the amount of ATOM you want to stake
4. That’s it! Note that there is an 82 days lock-in period.
Q: Are there any other charges that I am not aware of?
A: There are no voting fees nor transfer fees (ATOM transfer from Cloud Wallet to Reward Wallet). There is a 0.1 ATOM withdrawal fee. (ATOM transfer from Reward Wallet to Cloud Wallet). Also, in order to maintain stability in the Cobo voting system, there will be a penalty for early withdrawal as mentioned above.
