In response to community demand, and as part of our mission to evolve Aventus into a fully decentralised network, giving our community a self custody solution to holding Aventus-based assets, participating in staking and voting on governance proposals is one of our top priorities.
We developed our updated staking program with these goals in mind. It will allow AVT holders to:
- Stake AVT directly on the Aventus Network (AvN), without having to go through a layer 1 smart contract
- Withdraw staked AVT more quickly (within two weeks of staking) and autonomously
- Earn rewards daily based on the transaction fees validators earn for validating transactions on the network
- See daily increments on balance as a result of staking rewards
As well as unprecedented flexibility for AVT holders to increase and withdraw their AVT stake whenever they like, with the launch of the Aventus Gateway API, the AvN is more accessible than ever – which is already leading to increased transactions on the network. For stakers, more transactions means more transaction fees and more staking rewards.
But why is staking important?
Staking is an important part of Aventus’ vision for one main reason: security. Any data or value sent through the AvN is verified through a network of validators in a transparent and impartial manner. Validators must put up a stake in order to be able to start processing transactions, and are rewarded in fees for doing so. As the amount of validators grows, the security of the network increases as there is no single point of failure. You can be sure that your transactions are sent through a level playing field, with high resiliency and low downtime.
If a validator behaves fraudulently, or in a way that is not in the best interest of the AvN or the community, their stake is slashed. AVT holders that stake without running validators are showing their faith in the network and intent to become validators in the future to continue earning their share of fees in the AvN as it moves to full decentralisation.
What’s more, this community governance approach unlocks a new level of innovation, as well as working towards our goal of total decentralisation by distributing ownership of the AvN.
What is locking?
When you stake your AVT, the amount you stake is immediately locked for staking. The locking period lasts for seven days after you have declared your intent to unstake – meaning if you decide to unstake your AVT, you will have to wait seven days from that decision before your AVT is freed up.
Why is this the case?
There’s a good reason for this – again, it’s rooted in the security of our network.
In order to fulfil our responsibility of ensuring that our network remains secure, we have to put processes in place to disincentivise validators from acting in a manner that is not in the best interest of the AvN, or that of the community.
This is where the locking period comes in. It ensures that validators who act maliciously can’t immediately exit without being penalised by way of having their staking deposit slashed.
The wallet is almost complete – we are just finalising small details within the app, and hope to announce the launch imminently. Ultimately, this new staking program will be a key stepping stone to a number of our goals and objectives – including security, decentralisation, innovation and rewarding our community for their ongoing support.
What next?
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