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If you are holding SCRT coins, you could be contributing to network security and stability while earning more SCRT! Staking is a more active form of "HODLing" that puts your Secrets to work while also letting you directly participate in governance of the network. This post will teach you how to get started, how to calculate your rewards, and even how to run your own secret node.
How does staking work on Secret Network?
Secret Network's consensus model is Delegated Proof of Stake. This means that holders of SCRT can delegate their stake to a block validator of their choice. This validator earns rewards by processing transactions and computations on Secret Network, then shares some of these rewards back to their delegators according to the size of their deposits.
Validators on Secret Network are known as "secret nodes" - and they have an extremely important job. All validators on the network must maintain high uptime and utilize compliant hardware (enabled with Trusted Execution Environments) in order to remain active.
This is very hard work for validators, so the incentives need to be strong! In return for their effort, validators receive block rewards as each new block is generated on Secret Network. (This means Secret Network is inflationary, with new SCRT being created over time as a percentage of the current total supply.) Then validators pass on a percentage of these rewards to delegators while keeping some as a commission. This commission helps to fund their operations, ensuring that they can continue operating and that Secret Network can remain sustainable.
You can see a list of active validators and their commissions on any Secret Network block explorer. The most popular block explorer for the network is Puzzle, run by the Secretnodes.org validator team.
How can I stake my Secrets?
Because Secret Network utilizes delegated proof of stake, you don't have to be running your own validator on the network to participate in staking.
Most people won't be interested in running a secret node. First, becoming and remaining a network validator can be complex and often requires deep experience! Second, the network is currently capped at 50 active nodes. Only the top 50 nodes (measured by stake) are considered to be in the "active set" for the network. That means only those 50 nodes receive block rewards for processing transactions and computations.
The good news is, anyone can receive a share of rewards by becoming a delegator! If you hold SCRT in your own wallet (not on an exchange), you can delegate your Secrets to any validator and begin earning more SCRT right away!
There are three primary ways that people create their own wallet addresses and interact with Secret Network: web wallets, hardware wallets, and the command-line light client. Most people will prefer to use a web wallet such as Keplr for its usability advantages, but more advanced users might prefer a hardware wallet like Ledger or to use command line. These are all good options!
Web Wallet (Keplr)
Keplr supports multiple Tendermint-based blockchains besides Secret Network, including the Cosmos Hub and Kava. Here's a great introduction to getting started using Keplr!
Once you install Keplr, it's fairly easy to set up a Secret wallet address by selecting "Secret Network" as your network of choice. Once you have sent SCRT to this wallet address, you're ready to begin staking right away! Selecting "Secret Network" on the dashboard will take you to this page where you can see a list of all active validators and their commissions.
Click on "manage" to begin managing your stake with any of the available validators! From here you'll be able to delegate your SCRT - or, if you've already delegated, redelegate to another validator or undelegate entirely.
Hardware Wallets (Ledger)
For many users, hardware wallets are a more secure option for managing their private keys and ensuring the safety of their coins. They can be complicated at first, but they're quite powerful! Right now you can use a Ledger to store your Secrets safely. Here's a walkthrough guide on how to set up your Ledger to generate an SCRT address.
Once you have SCRT stored on your Ledger there are a few options for staking, including connecting your Ledger to either Keplr or Puzzle or utilizing the command-line light client. Here is a walkthrough written by a community member (Toni) on using Ledger with Keplr - and below is a video showing you how to use your Ledger with Puzzle!
Command-line Light Client
Are you more experienced as a developer and prefer more granular control of your Secrets? Follow this link for full documentation of
secretcli: the command-line interface tool that enables you to interact with a node that runs on the Secret Network. You'll learn how to generate keys, delegate, and more!
How do I change or remove my stake?
Once you've staked with a validator on Secret Network, you can choose to redelegate your coins to another validator or undelegate entirely.
Please be careful if you decide to undelegate your coins! You will stop earning rewards immediately and there is currently a 21 day unbonding period. That means you can't move your undelegated coins for 21 days after you begin unbonding. (If you simply redelegate from one validator to another, you won't face this restriction. However, you won't be able to redelegate those coins for 21 days.)
Whether you are using Keplr, Puzzle, command line, or another option for staking your Secrets, there are ways to safely redelegate and undelegate as well. Those options are found in the same places where you originally selected your staking provider. You should familiarize yourself with all the features of whichever method you choose for managing your coins!
How can I run my own secret node?
Staking and participating in governance is exciting - but not as exciting as running your own secret node!
Secret nodes form the backbone of our network, securing computations and ensuring stability for applications that rely on Secret Network. Running your own secret node is one of the strongest ways you can support the project and help grow our ecosystem!
Be advised that running a node is not always simple. There are a lot of potential challenges, especially when you need to ensure your hardware is up-to-date and patched against vulnerabilities. Fortunately, Secret community is actively providing support to node operators and establishing best practices.
SCRT (pronounced "Secret") is the native coin of the Secret Network. This means SCRT is used to pay fees and transfer value on the network. Secret nodes must stake SCRT in order to operate on the network, and in return they receive fees and network rewards in SCRT. When nodes go offline, they can be "slashed" and lose a portion of their SCRT stake. Holders of SCRT who are not operating nodes may "bond" their stake to a specific node in order to become a delegator. Delegators have an opportunity to earn a share of fees and network rewards by supporting a particular set of validators.