Staking on Chiliz Chain

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

Validators are usually bigger players who want to contribute to Chiliz Chain.

Casual crypto-fans can also stake their CHZ as part of a validator's stake. That way, it becomes easier to participate in and support activities on Chiliz Chain.

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

You can withdraw your stake whenever you want. However, there's a timeframe of 7 epochs (approximately 7 days) before you can claim your reward.

Chiliz governance

Chiliz Chain relies on a Proof of Staked Authority (PoSA) governance.

Chiliz Chain relies on a robust structure of validators that help in reducing gas fees and shorten the block 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.