Today, as blockchain technology continues to develop, Chromia, as a layer 1 relational blockchain platform, is providing users and developers with a more flexible and efficient staking mechanism. On July 11, 2024, Chromia will officially transition to a new “native staking” system. This change will bring a more convenient experience for stakers. This article will explain the relevant information of this new system in detail.
Activation of native staking system
Until the new system comes online, the existing staking mechanism will continue to operate and stakers do not need to take immediate action. The existing list of providers will continue to be used, and users can continue to earn rewards from the “old” staking system until the native staking system is launched. It is worth noting that the specific launch date of native staking has not yet been determined, but it is expected to be at the end of the third quarter.
Diversity of staking options: Once native staking goes live, users will be able to stake their CHR tokens on three different blockchains:
For users who have already staked on one of the EVM networks, there is no need to withdraw tokens. The new system will automatically recognize the tokens you stake on all three networks, ensuring a seamless staking process.
Delegation and reward mechanism
Under the native staking system, users need to choose an available mainnet provider to delegate on Chromia. No matter which chain you stake on, rewards will be paid out in native CHR and will be paid out automatically every day. This design greatly simplifies the user's operation process, and pledgers no longer need to manually collect rewards.
It is important to note that the 14-day withdrawal waiting period still applies to the new staking system. During this period, users will not be able to receive rewards. In addition, during the short "grace period" after the launch of the native staking system, the old system will continue to pay rewards, providing a certain buffer time for stakers.
Receive rewards under the old system
Following the switch to the native staking system, users will have 6 months to claim unredeemed rewards on Ethereum and Binance Chain. After six months, these rewards are permanently lost. Therefore, stakers need to handle unclaimed rewards in a timely manner to avoid losses.
Reward interest rate and supplementary mechanism: The annual interest rate for rewards under the new system is slightly more than 10%. This reward will be supplemented by a portion of the network fees earned by the provider entrusted by the user. This means that stakers’ earnings will not only rely on a fixed annual interest rate, but will also vary based on the performance of the provider. This design not only increases the earning potential of pledgers, but also incentivizes providers to improve service quality.
Background on Chromia
As an innovative blockchain platform, Chromia is committed to providing users and developers with dedicated dapp chains and customizable fee structures through a modular framework. Compared with traditional blockchains, Chromia provides instantly indexed, locally queryable data, challenging existing information structures and greatly simplifying the end-user experience.
Through this series of innovations, Chromia not only provides developers with a more flexible development environment, but also brings a better service experience to users. With the launch of the native staking system, Chromia will further consolidate its position in the blockchain field and create more value for users.
Conclusion
To sum up, Chromia's native staking system will provide stakers with a more convenient and efficient staking experience. Through multi-chain support, automatic reward payment, and a flexible delegation mechanism, Chromia is building a friendlier blockchain ecosystem for users. After the upcoming launch of native staking, users will be able to more easily participate in this innovative staking mechanism.
If you have any questions about Chromia’s native staking system or want to learn more, please visit the Chromia official website. We look forward to witnessing the future development of blockchain technology with you!