AdEx Staking released: you can now stake ADX to earn validator fee rewards
Posted by AdEx Network on December 27th, 2019InsightsAnnouncements
Happy holidays from the AdEx team! It's time for another AdEx Registry update, and this time it's the big one - you can finally stake your ADX to start earning a portion of the network validator fees.
Today marks the launch of the AdEx staking app, which you can find at staking.adex.network. This is the user-facing part of the Registry, where anyone can stake their ADX on one of the staking pools.
The first available staking pool is the "Validator Tom": as the name suggests, this is the pool of the Tom validator, which is operated by us. We will distribute the fees it earns proportionally to stakers in this pool.
Under the hood, the staking app interacts with the Staking contract, which runs on Ethereum and is deployed here.
Here's what you need to know:
- The only official user interface is https://staking.adex.network (GitHub).
- You need Metamask and you stake the ADX token.
- There is a 30 day lock-up period.
- Reward distribution will start by the end of Q1 2020.
- You will receive a proportional part of the collected validator fees.
- The smart contract source code and audit results can be found here. It passed a security audit by G0 group.
Here's how to stake:
- Make sure you have Metamask installed and set-up. Make sure you have ADX and some ETH for gas in your Metamask account.
- Go to staking.adex.network. Metamask will ask you whether you want to connect to it; approve the request.
- Click on "Stake your ADX" and fill the form - currently the only available pool is the "Validator Tom" pool, so select that one. Type in the amount of ADX tokens you want to stake.
- Once you've filled the form, the "Stake ADX" button will become active. Click it and two Metamask popups will appear one after the other. You need to approve both.
- Once those transactions are mined (you can check in the Metamask UI), a bond will appear in the bonds table.
Congratulations, you did it! We will start distributing rewards to stakers in this pool in 2020, so keep coming back to check your rewards!
If you encounter any issues, please contact us through the chat on the bottom right on the website.
Note: a full tutorial is coming soon.
What is the AdEx Registry?
The AdEx Registry is a mechanism that incentivizes AdEx validators to stay online and not misbehave. You can read more here.
This is accomplished by allowing validators to stake ADX against their availability - if they go offline, they will get slashed (lose some of the ADX). The higher the ADX staked for a validator, the more credibility it has.
Users can also stake ADX through staking pools.
What is a bond?
A bond is a certain amount of ADX tokens locked on the smart contract, or in other words - an individual ADX deposit for staking.
What is a staking pool?
A staking pool is a collection of multiple bonds by any number of users. Each pool has a different purpose, reward policy and slashing rules- usually a pool would be associated with a validator, meaning that you'd get a portion of that validator's revenue.
Staking towards a validator pool is essentially a vote of confidence in this particular validator.
Is staking only for validator operators?
No, anyone can stake through staking pools, as long as they hold ADX tokens.
Is there a minimum for staking?
The staking system has no minimum, but certain pools might require a minimum amount staking before they start distributing rewards. For now, there's only one pool (Validator Tom) and it has no minimum. We recommend staking at least 300 ADX.
Can I get slashed?
This is specific to every pool. The "Validator Tom" pool has no slashing.
Is there a lock-up period?
Yes - it's hardcoded to be 30 days.
If I stake, what will I be earning from and how much is the reward?
The rewards you will get are specific to every pool. The "Validator Tom" pool will distribute its fee earnings proportionally to each staker. The fee earnings will be 5% of the total volume, which you can track on our Explorer.
The projected APR for the "Validator Tom" pool can be calculated by this formula:
validatorFee * annualVolumeInUSD / totalStakeInUSD. This may vary quickly since all those parameters change dynamically, including the ADX price. For example, at the time of writing, it is
5% * 198k / 161k, which equates to 6.14%.
Please note that unlike other staking systems, the AdEx Registry distributes rewards without inflation of the ADX token. This is because validator fees are in DAI, and come from organic ad campaign payments.
If reward distribution starts next year, why would I stake now?
Rewards will be calculated based on the total lifecycle of your bonds. This means that, for example, if reward distribution launches in March, you will still receive rewards for January and February.
What if I want to run my own validator?
You can run your own validator and once we launch the reward distribution mechanisms, you create your own pool. Please contact us for more information.
What if I don't have ADX
You can buy ADX on the following exchanges: Binance, Bittrex, Upbit, Huobi Global and others.
Can I review the source code?
Yes! In fact, we encourage you to independently review the source code if you want to stake large amounts.
Was the system audited?
Yes, the contracts were audited by the G0 group (read more here) and the UI was audited internally.
Is there inflation involved?
No, becase the rewards come from validator fees - which are collected from ad payments, which are in DAI.
The ADX token is permanently capped to 100,000,000 million, all of which are already minted.
Is the Registry running on Polkadot?
The staking contract is on Ethereum. In the future, the slasher component, which monitors validator uptime, will be running on Polkadot.
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