The Cosmos Hub is the centre of the Cosmos SDK ecosystem, an ecosystem with tools that make it easy to build a new, custom-designed blockchains are interoperable with others in the Cosmos network. The Cosmos Hub has broken the silos of blockchain economies by enabling assets and data to be transferred between blockchains. New Cosmos-based blockchains can be securely connected with other blockchains, increasing the rate of adoption and liquidity.
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Available via the Figment App or via API that hooks directly into client platforms, offering portfolio tracking across multiple networks and rewards optimization.
Stake your ATOM tokens in a few clicks by following these steps:
The easiest way to stake ATOM is via Keplr.
The Cosmos Hub's native token, ATOM, is used to stake, pay for transactions, and to participate in on-chain governance.
Transfers and staking rewards are currently enabled.
Good question!
Initially the ATOM is being staked to earn new issuance ("inflationary") subsidies. That means that the ATOM supply will increase and stakers will capture the newly issued ATOM. Generally you will earn around 10.5% annually on your staked ATOM, but that can change. Since staking rewards are tied to inflation, read about how inflation and rewards are related here.
Stakers will also capture fees from network transactions, so as Cosmos Hub transaction volume increases, ATOM stakers will earn more than new issuance subsidies.
The ATOM also gives stakers the right to vote on policy decisions for how the Cosmos Hub will operate and distribute treasury funds.
The main drivers of the ATOM’s value could be more than transaction fees. ATOM-holders should be able to somehow extract value related to the “assets under management” that the Cosmos Hub secures (via products like DeFi). In a world of thousands of connected blockchains, credibility could be the scarcest resource, and the Hub aims to be the most credible. Owning staked ATOMs is ownership of the Cosmos Hub, entitling ATOM stakers to set/change the rules of the Hub. Read more here.
Staking is instant.
From the moment you initiate the unbonding process, it takes 21 days to unstake. During this time you will not earn rewards. When the process is complete, you can transfer/trade your ATOM tokens.
You can self-custody your Cosmos Hub ATOM tokens, ideally using a Ledger hardware wallet. Here are instructions for using your Ledger wallet with the Hub.
Figment has partnerships with a number of top-in-class custodians: support@figment.io
The Cosmos Hub protocol takes control of your ATOM tokens while you are staking. If you unbond your tokens, this process will take 21 days before the protocol returns your tokens to you. While your ATOM are staked, you may participate in on-chain governance by voting on different proposals.
Yes, a portion of your staked ATOM can be destroyed. There are two ways this can happen:
Staking income on the Hub is automatically distributed each block. Figment is never in control of your staking income.
Staking income is liquid, which means you can withdraw your rewards to use at any time, but you will need to delegate them if you want to add them to your existing stake. Reward income is not automatically staked.
Your potential rewards depend upon validator performance. When your validator is down for over ~20 hours (ie. "jailed"), you will not be earning staking income.
The new issuance ("inflation") rate is around 7% of the total supply. When under 67% of the supply is staked, the rate gradually increases to a maximum of 20%. When above 67%, the rate gradually decreases to a minimum of 7%.
Currently the Cosmos Hub paysdelegators roughly 7% rewards in ATOMs per year. The annual inflationrate changes depending on the percentage of the network tokens staked.When less than two-thirds of all tokens are staked, inflation graduallyincrease up to 20%. When over two-thirds of tokens are staked, thenetwork inflation rate gradually decreases to 7%.
Read more about how inflation and rewards are related here. As of February 2020, the network staking rate is over 70%.
The Cosmos Hub uses staked token voting for on-chain governance. Governance proposals are typically discussed on the forum and in the Governance Working Group Telegram channel.
Proposals are then deployed on-chain. You can read about how to deploy a governance proposal here. The voting period lasts for 14 days and require a quorum of 40% of staked ATOM and a simple majority to pass. Read more about the voting process and proposal types here.
You can see active proposals on most popular explorers and some wallets:
Figment is the world’s leading provider of blockchain infrastructure. We provide the most comprehensive staking solution for our over 200+ institutional clients including exchanges, wallets, foundations, custodians, and large token holders to earn rewards on their crypto assets.
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