- 21 days
Luna, as the native staking asset from which the family of Terra stablecoins derive their stability, utility, and value, acts both as collateral for the entire Terra economy and as a staking token that secures the PoS network. Luna can be held and traded as a normal cryptoasset, but can also be staked to accrue rewards in the network generated from transaction fees. Luna can also be used to make and vote on governance proposals.
Earn rewards with LUNA. There are only two ways: either directly staking as a validator delegate by running the validator node and being one of the top 100 in terms of delegated Luna, or by delegating Luna to one of such validators. LUNA delegation is very easy, safe and can be done within minutes directly inside the wallet.
Rewards from staking are based off transaction volume inside the Terra economy, taxes and seigniorage rewards (value gained from issuing new Terra).
It is a huge responsibility to run a validator, so it is easiest to stake through delegating your Luna. As a delegator, there is no minimum requirement to stake Luna.
Terra is a stablecoin protocol, but Luna does not have the stability properties of the Terra coins, which it collateralizes.
If you stake Luna, you will not be able to have access to it for at least 21 days as they will be locked.
Validators have a responsibility to report exchange rate price accurately and keep solid architecture, and those who underperform risk being slashed a small percentage. To minimize this risk as a delegator, you should split large stakes among several reputable validators and keep your delegates in check.