The Flare Network is navigating a three-phased transition to a staking model, aiming to decentralize and bolster network security. This shift welcomes infrastructure providers and presents both them and the community a chance to earn passive income through staking and validation rewards, thereby enriching network security and data provision.
Phase 1: Initiating Staking Transition
Phase 1 was released in July 2023.
- Objective: Maintain network position of professional validators, inviting existing data providers to become infrastructure providers.
- Staking: Open to all, with Flare Foundation providing majority of the stake initially.
- Self Bond and Delegated Stake: Two types of stakes introduced with a minimum self bond requirement of 10 million FLR for infrastructure providers.
Phase 2: Expanding Staking Participation
Phase 2 was released in October 2023.
- Objective: Merge validation with decentralized data provision, opening validator staking to all.
- Infrastructure Providers: Current FTSO data providers and new entities can become infrastructure providers.
- Self-Bond: Minimum self-bond of 1 million FLR on P-Chain required for infrastructure providers.
- Delegation: Community can stake FLR to any validator, with 50,000 FLR as the minimum stake. This is the central part for most Bifrost Wallet users.
Phase 3: On-Chain Staking Management
Phase 3 is still being planned and has not yet been released as of November 2023.
- Objective: Facilitate secure communication between P- and C-chains, moving staking rewards management on-chain.
- Rights Equivalence: P-chain staked funds will have similar rights as C-chain wrapped FLR.
- Earning Opportunities: Earn FTSO rewards, FlareDrops, and participate in governance.
Public Staking: Engaging the Community
- Transferring Funds: Transfer FLR from C-Chain to P-Chain for staking.
- Delegating Stake: Choose validators to stake to and earn validation rewards.
- Staking Requirements: Stake at least 50k FLR for a minimum of 14 days. Amount and duration can be higher based on preferences.
- Additional Information: Fee variations exist among infrastructure providers. Avoid providers whose lockup-periods expire within 14 days. Validator stakes capped at 5% of total staked amount.
FlareStake Tool: Simplifying Staking Process
- Staking dAPP: Flare Foundation's tool for staking FLR. Currently, only Ledger Wallet users can access it. Go to the Staking dAPP.
- Binding Addresses: Bind addresses before transferring funds to P-Chain for correct reward distribution on C-Chain.
- Staking Funds: Stake funds post transfer.
- Reward Claiming: Claim rewards every 4 reward epochs from FlareStake tool. Read the official Reward Claim Guide.
- Staking Docs: Complete guide on staking has been released by Flare Networks. Link to Staking documentation.