Wallet: Polkadot{.js} extension

Explorer: Polkadot{.js} or Subscan

‍Figment has developed the Polkadot Hubble explorer.

Polkadot's native token, DOT, is used to stake, pay transaction fees, and to participate in on-chain governance.

https://www.figment.io/resources/polkadot-guide-to-staking-nominating-dot

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Good question!

Initially, the DOT is being staked to earn new issuance ("inflationary") subsidies. That means that the DOT supply will increase and stakers will capture the newly issued DOT. Generally, you will earn around 14% annually on your staked DOT, 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 Polkadot transaction volume increases, DOT stakers will earn more than just new issuance subsidies.

DOT also gives stakers the right to vote on policy decisions for how the Polkadot protocol will operate and distribute treasury funds.

The main drivers of the DOT's value could be more than transaction fees. Since DOT is required to lock up in parachain bidding, a new side chain will be required to procure and lock these DOTs in competition with other side chains. DOT-holders are also expected to be able to get early exposure to the assets of new side chains by lending their DOT for this bidding process.

Owning staked DOT is ownership of the Polkadot network, entitling DOT stakers to set/change the rules of the Polkadot protocol.

From the moment you initiate the unbonding process, it takes 28 days to unstake. During this time you will not earn rewards. When the process is complete, you can transfer/trade your DOT tokens.

You can self-custody your Polkadot DOT tokens, ideally using a Ledger hardware wallet. Here are instructions for using your Ledger wallet with Polkadot.

Figment has partnerships with a number of top-in-class custodians: support@figment.io

The Polkadot protocol takes control of your DOT tokens while you are staking. If you unbond your tokens, this process will take 28 days before the protocol returns your tokens to you. While your DOT are staked, you may participate in on-chain governance by voting on different proposals.

Yes, a portion of your staked DOT can be destroyed if the validator(s) you nominate are involved with 1) too much stake going offline simultaneously or 2) equivocation events (aka double-signing).

[future - provide more details]

There are two ways this can happen:

1. If you nominate a validator that is offline for over Z hours (assuming #s blocktimes), you will lose % of the tokens you have delegated to that validator.
2. If you delegate to a validator that signs the same block twice with the same key, you will lose % of the tokens you have delegated to that validator.

Once triggered, staking income on Polkadot may be automatically distributed every era (ie. 24 hours). Figment is never in control of your rewards. However, you will not receive your staking income until a claims transaction is sent, which any nominator may do every 24 hours.

Staking income is not staked automatically, which means you will need to lock and nominate with your staking income in order to compound your rewards.

Your potential rewards depend upon validator performance. When your validator is down, you will not be earning staking income. If your validator is not performant, your staking income will be reduced.

The annual new issuance ("inflation") rate is around 10% of the total supply.

Polkadot uses token voting for on-chain governance. Governance proposals are discussed on the forum.