Stake your CHZ on Chiliz Chain and earn rewards!
Staking is an integral part of the consensus mechanism.
Chiliz Chain relies on a robust structure of validators that help in reducing gas fees and shorten the block time. Usually, blockchains use consensus mechanisms based on Proof-of-Stake (PoS). The participants for staking get opportunities based on their stake in the pool to validate transactions and create more blocks and become validators.
Chiliz Chain relies on a Proof of Staked Authority (PoSA) governance. As a user, you can decide how long you want to stake your CHZ. That way, it becomes easier to participate in and support activities on the blockchain. You earn more rewards in return for staking your share. You can withdraw your stake whenever you want. However, there's a timeframe of 7 epochs (approximately 7 days) to do so.
In a PoSA consensus-governed blockchain, the validators of the network are able to vote on proposed changes to the network (called "proposals"). Only active validators can vote and there has to be a ⅔ consensus for the proposal to pass.
Proposals are open for 7 days. If a consensus is not reached by that time, the proposal does not pass. The more CHZ staked and/or delegated by a specific validator, the more voting power the validator has, making their vote worth more influential.
On the Staking App, you can see the proposal history including any active/open proposals that validators are still voting on or are waiting to be executed.
When you stake CHZ on the chain, you earn rewards based on the network's transaction fees. When a validator makes a block, they get these transaction fees as their reward. More transactions mean more rewards.
Here's how the rewards are divided:
- Validators get 80% of the rewards. They can keep up to 30% as their fee, and share the rest with those who staked CHZ on their node. How much each person gets depends on how much they staked.
- The other 20% of the rewards help maintain and grow the Chiliz Chain network.