About Staking

Stake your CHZ on Chiliz Chain and earn more CHZ!

Staking

Staking is an integral part of a Chiliz Chain's consensus mechanism. It involves holding CHZ in a wallet to support Chiliz's operations, to secure transactions, and to maintain the blockchain's integrity.

Participants earn rewards (additional CHZ), which serve as motivator for contributing to the network's stability. They also get opportunities based on the percentage of their stake in the total pool of stakes. Among the opportunities are validating transactions, creating more blocks, and becoming validators.

Validators and delegators

There are two roles in the Chiliz Chain consensus mechanism: Validators and Delegators.

Defining Validators and Delegators

Validators are usually bigger players who want to contribute to Chiliz Chain and support the network, by providing node which in turn validate new blocks created on the chain. In exchange, they get voting power equivalent to their stake.

Delegators are more regular crypto-fans who choose to stake their CHZ as part of a validator's stake. They "delegate" their CHZ to them, and rely on their vote. Thanks to this system, it becomes easier to participate in Chiliz Chain's governance, and support Chiliz activities.

You too can earn rewards in return for staking your CHZ! By staking your CHZ to a validator, you become what is called a "delegator": You delegate your CHZ to a validator, who in turn can stake more CHZ and therefore earn more reward.

Stake your CHZ

You can withdraw your stake whenever you want. However, there's a timeframe of 2 full epochs (approximately 3 days) before you can claim your reward.

Unstake your CHZ

Chiliz governance

Chiliz Chain relies on a Proof of Staked Authority (PoSA) governance, and a robust structure of validators that help in reducing gas fees and shorten block creation time.

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 Chiliz Governance site, you can see the history of proposals including any active/open proposals that validators are still voting on or are waiting to be executed.

Chiliz staking: reward breakdown

When you stake CHZ on the chain, you earn rewards based on the amount being inflated per blocks, as well as based on the priority fee being paid by users in their transactions. When a validator creates a block, they get these rewards and distributes them accordingly.

Here's how the rewards are divided:

• Validators get 65% of the rewards. This is then split with the delegators of the specific validator.

• The other 35% of the rewards get invested to help maintain and grow the Chiliz Chain network.

More information here:

Staking Rewards