What is Centrality
CENNZnet is a public blockchain network designed to power the next generation of decentralized applications (DApps). It is the world’s first natively permissioned public blockchain and provides core services to DApp builders such as integrated multi-token economy, attestation, NFTs, and more.
Proof of Stake
Nominators are CENNZ token holders who choose to stake a portion of their CENNZ behind a Validator. If the chosen Validator is elected and performs their duties correctly, Nominators receive a portion of the resulting CPAY reward.
To take part in staking you must:
- Hold CENNZ
- Agree to lock in and stake a minimum threshold amount of CENNZ (minimum stake will be 10,000 CENNZ for both nominating or validating).
- Nominators can stake with several Validators. If only some of your chosen Validators are elected then your token stake will automatically move to pool behind just Validators who have been elected. The nominator’s original preferences will remain intact in subsequent elections.
- If a Nominator’s chosen Validator is found to not be performing their duties correctly, a portion of the stake is slashed. This includes the Nominator’s contribution.
- Nominators staked CENNZ are locked in during the staking period.
- There will also be a slight time delay on return to ensure the Validators duties were performed correctly. This is a security measure. There has to be ample time to be sure a Validator/Nominator has not done something wrong before their funds are free to withdraw.
- The Nominators CPAY reward is proportional to their contribution to the stake. So if you contributed 30% of the total stake behind a Validator you will receive 30% of the CPAY reward. Bear in mind, however, that Validators can choose to also take a commission, so this will be removed from the total reward available to Nominators.
- Note that there’s diminishing returns on everybody voting for the same Validator, as the more Nominators a Validator has the less the portion of the CPAY reward. There’s a risk reward incentive to try nominate a Validator no one else has and get a larger share of the reward.
- Rewards are paid out automatically at the end of an era (24 hours).
Please note that there is an unbonding period, which serves as a cooldown. You will be able to transfer your tokens after this time has passed (28 days on Cennznet). After 28 days of unbondling, the CENNZ will be in the "Redeemable" state. At this time, the unbond CENNZ can be redeem by using the redeem function. Please note that during the unbonding period, you will not receive any staking rewards.