Topic

Staking Risks

Staking your digital assets is not a risk-free endeavor. Please make sure to review all the risks involved before you start your staking operations and make sure to properly research the validator that you want to stake with.
Smart Contract Risk

When interacting with smart contracts, there is always a residual risk of the smart contract containing a vulernability or bug.

While auditing the smart contracts drastically reduces these risks, there are always unknown unknowns, which leave a residual risk when interacting with these contracts.

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Smart Contract Risk
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Protocol Mechanics
For better classification, differentiation and comparability of different Blockchain networks, we identified different Protocol Mechanics.
Staking Mechanics
Staking Mechanics refer to the token economics, which is a new branch of the economy that explains the structure of a particular ecosystem in the blockchain sphere. It describes the study, design, and implementation of economic systems built on blockchain technology. Each platform and blockchain application is developed under its own token-economics model. Proof-of-Stake blockchains not only differ in terms of their 'Protocol Mechanics', but also in terms of certain staking-related parameters, e.g. their reward or inflation rate as well as certain actions that are required by delegators.
Staking Risks
Staking your digital assets is not a risk-free endeavor. Please make sure to review all the risks involved before you start your staking operations and make sure to properly research the validator that you want to stake with.