Celo recently completed their incentivized testnet, “The Great Celo Stake Off” on their Baklava testnet. Figment Networks placed 16th overall in the competition, and received one of the highest Master Validator Security Audit scores. 

Celo is planning to launch their mainnet in Q2 2020. If you would like to learn more about staking opportunities with Figment, then please contact Clayton (clayton@figment.network).

Wondering how locking cGLD and earning rewards will work? Read this simple, brief article.

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Celo is a Proof of Stake blockchain with smart contracts. The technology uses a phone-number based identity system with address-based encryption and eigentrust-based reputation. Their first application is a social payments system that can be used on a smartphone. 

Celo plans to launch a variety of stable coins pegged to global fiat and crypto currencies, the first one being pegged to USD (cUSD).

Celo Gold (cGLD) will be the utility token on the Celo network. cGLD will be used to pay for transactions, and they can also be staked by token-holders to earn rewards, participate in governance and vote for validators.

You can find more information on Celo’s website and by reading the Celo Whitepaper. Their main communication channel is their Discord group, which can be found here

Frequently Asked Questions

How do I earn staking rewards on Celo?

To receive staking rewards, you’ll need to do two things:

  1. Lock your Celo GOLD tokens, and
  2. vote for a validator group.

The validator group you vote for must be elected in order for you to begin receiving staking rewards.

What are the rewards for staking cGLD?

You should expect your maximum rate of rewards (ie. the baseline) if:

  1. the validator group that you vote for is elected and
  2. all of its members perform flawlessly.

The baseline reward estimate is about 6% annually. Baseline rewards for stakers automatically increase and decrease depending on how much of the supply is staking to incentivize a targeted participation rate.

Staking rewards will not be used to pay validators, so you will not pay a validator group a commission. Validators will automatically be compensated by the protocol.

What are the risks of staking on Celo?

 

Stakers only risk opportunity cost (and no slashing), meaning that you may miss out on rewards that you otherwise would have received had the group you elected operated flawlessly. There are two ways this can happen:

  1. A validator is offline too long or
  2. a validator commits a fault that puts the network safety at risk.

A validator safety violation cuts your rewards in half for one month.

If a validator in your elected group puts the safety of the Celo network at risk by “double-signing,” you will only earn half of your baseline rewards for one month.

Validator performance reduces your rewards relative to downtime.

Your validator group gets an “uptime” score for their performance, which begins to decline if any of the group’s validators are down for more than one minute (12 blocks). What does that mean?

Your rewards are proportional to average uptime score of your elected validator group. An “uptime” score of anything less than 1.00 will reduce the rewards you earn. The more that the group’s validators are offline, the more that your rewards earnings will be reduced.

How are rewards disbursed?

If you’re staking Celo Gold (cGLD), you’ll be rewarded in cGLD about once per day (epoch). The rewards automatically get compounded (restaked) unless the you decide to unlock a portion or all of your staked amount.

Validators get rewarded in Celo Dollar tokens (cUSD) once per epoch (roughly each day, initially). Validator group owners can take a commission of these rewards. 

If I want to stop staking cGLD, what is the unlocking period?

A user can unlock a portion or all of their locked Celo Gold at anytime after removing all active votes. There is a 3 day unlocking period before the user can transfer the amount back to their wallet.

Rewards are automatically added to staked cGLD, so your rewards will automatically compound without having to do anything. However, that means that rewards must be unlocked in order to be liquid (ie. tradable).

Does Celo have slashing?

Yes, but only for validators and validator group owners. Stakers will not be exposed to slashing.

When does Celo plan to launch its mainnet?

The plan is for Celo’s mainnet to launch Q2 2020. We’re ready–are you? Check out this article to get prepared, and contact us if you’re a large token-holder considering a partnership with additional services: contact@figment.network