Fluid Staking is live!
We’re thrilled to announce that Fluid Staking went live at Epoch 1600 at 15:13 GMT.
Fluid staking is:
- The new staking model for Fantom, voted by FTM holders.
- Decreasing inflation by reducing the annual rewards to 14% max
- Allowing the maximum flexibility for stakers. You can choose a longer lockup to maximum rewards, or a shorter lockup or no lockup at all for a lower return rate.
What is Fluid Staking?
Fluid staking is the new staking model voted by FTM holders. 74% of the participants were in favor of this proposal over the other two options.
How does Fluid Staking work?
With fluid staking, you have the maximum flexibility with your staking.
- Stake-as-you-go: earn the base rate, and your capital is always unlocked. You’ll be able to claim your rewards every few epochs. APY: 4%
- Lock up your funds for any time you choose, from a minimum of two weeks to a maximum of one year. You’ll earn rewards proportional to the time you decide to lock up your delegation, up to a maximum of 14% for the annual lock. In this case, you’ll be able to claim your rewards every few epochs. 30% of the rewards will remain locked to cover potential early unlock penalties and become available once the lockup period expires.
Important: the maximum lockup period available for you depends on the validator you choose. Validators can choose how long to lockup their FTM as well, up to a maximum of 12 months.
If the validator you chose isn’t locking up their FTM, you will only be able to stake as you go, with no lockup and 4% APY.
If the validator you chose is locking up for three months, for example, you’ll be able to lock up your FTM for three months maximum.
If the validator you chose is locking up for 12 months, you’ll be able to lock up your FTM for up to 12 months.
Can I unlock early with Fluid Staking?
Yes, you can unlock your stake at any time. In that case, you’ll pay a penalty that will be slashed from your locked rewards.
Your initial stake and 70% of your rewards won’t be slashed, and you won’t lose any of your initial stake in any case.
I’m currently staking; how do I participate in Fluid Staking?
If you’re staking already, your current position is in “stake-as-you-go” mode, earning 4% APY.
You can lock it for any amount of time you wish by clicking on Lock delegation and using the slider to choose the lockup period to earn higher rewards, up to 14% APY.
Do I have to wait for the usual seven days when unstaking?
Yes. Unstaking will take seven days as usual to guarantee network security.
How do I compound my rewards?
You’ll have two options.
- Compound like in the previous model. You can claim the rewards and restake them in the current delegation. The added FTM will have the same lockup and rewards of the main delegation.
- You can create a new delegation. You’ll have maximum flexibility, as you can choose a different lockup period for your rewards.
What does Fluid Staking change for validators?
- Validators can choose a lockup period as well. The lockup period they choose will be the maximum available for their delegators.
- Validators will be able to increase their capacity by compounding the rewards, but won’t be able to add new FTM.
- This feature increases decentralization and network resilience as it encourages the creation of new validator nodes.