Moonkitt

Glossary ​

Staking ​

Picture yourself as a blockchain bodyguard. Staking is the process of locking your tokens to help secure the network, earning rewards for your vigilance.

NOTE

In the Cosmos, "Staking" and "Delegating" are like two sides of the same coin. We chose to use "Staking" when talking about securing the chain, while "Delegating" refers to influencing governance decisions.

Unstaking ​

Imagine that you want your tokens back. Unstaking is the process of unlocking the staked tokens.

IMPORTANT

Unstaking your tokens can take a while (like a 21-day vacation on the Cosmos Hub).

TIP

Changed your mind mid-vacation? No worries! On most chains, you can cancel unstaking and get back to securing the blockchain in a flash.

Solid stake ​

This is your classic, locked-up stake – think of it as the traditional way of contributing to the blockchain.

Liquid stake ​

Forget the waiting game! Liquid stake lets you send and receive your staked tokens while they're still hard at work securing the chain. This magic trick requires the Liquidity Staking Module to be active on the chain.

NOTE

Hold on, let's clarify the liquid stake game. When we talk about liquid stake here at Moonkitt, it's not the same as tokens like stATOM or qATOM offered by providers like Stride or Quicksilver. Those are essentially "liquid receipts" for your staked tokens, managed by separate platforms. The liquid stake on our platform operates differently. It's a native feature offered by the Liquidity Staking Module, directly linked to a specific validator, giving you full control over your staked assets without relying on external providers.

Liquefy ​

Imagine turning your staked tokens into a magic potion of liquidity. That's what liquefying does, thanks to the Liquidity Staking Module.

WARNING

Not a fan of the whole liquefying thing, or maybe a little paranoid about hackers snatching your staked tokens? No worries! You can easily disable the Liquefy feature at any time, keeping your stake solid and secure. For more details, we suggest visiting our Security section.

Solidify ​

This is the process of transforming your magical potion back into solid stake. Think of it as reversing the liquefying spell.

TIP

Airdrop enthusiasts, listen up! To ensure you qualify for those sweet airdrops, we recommend solidifying your liquid stake as soon as it arrives in your wallet. Traditionally, airdrops only consider "solid" staked tokens when taking eligibility snapshots of the chain. Solidify your stake, and you'll be golden!

Rewards ​

Think of staking as your personal treasure hunt. You earn rewards for your contribution, typically a share of network fees and inflation. And the best part? You earn these rewards with both solid and liquid stake.

NOTE

The process of claiming rewards is different with liquid stake. With liquid stake, a special Rewards Owner is assigned during liquefying (typically yourself, but in theory you can specify another wallet). Then, rewards are accruing to the liquid staked tokens like tiny treasure chests. When the liquid stake is solidified, the Rewards Owner automatically collects the bounty!

LSM Token Rewards Owner ​

As mentioned in the note above, when you liquefy your stake, a unique LSM Token is born behind the scenes, complete with its own Rewards Owner – typically, that's you!

The Rewards Owner has two magical powers over these LSM Tokens:

  • Claim Rewards: As the Rewards Owner, you hold the exclusive key to unlock the accrued staking rewards. Simply claim them, and watch your wallet collect the bounty!
  • Transfer Ownership: Want to hand over the keys to these treasure chests? You can transfer the Rewards Ownership to another wallet. But be careful! It's an instant teleportation of ALL pending staking rewards to the new owner.

IMPORTANT

When you transfer Rewards Ownership:

  • The new owner becomes the captain of this specific LSM Token
  • All accrued rewards immediately jump to the new owner's treasure chest
  • You lose all future claims on this particular LSM Token

Waiting period ​

When you initiate the process of withdrawing your staked tokens (unstaking), there will be a temporary period before they become fully transferable again. This waiting period is often referred to as the "unstaking period" or "unbonding period."

Switching validators also triggers the same waiting period. This means you'll need to wait the same duration before switching to another validator again.

NOTE

On the Cosmos Hub, this waiting period lasts for 21 days. However, it's important to note that this timeframe may vary depending on the specific blockchain within the Cosmos ecosystem.

Liquid staking caps ​

Thanks to the Liquidity Staking Module, there are two key safeguards in place for liquid staking:

  • Individual Validator Caps: Each validator has a limit on how much liquid stake they can handle. Think of it like a personal "bucket" for liquid tokens. Validators can increase their capacity by adding more of their own tokens to the stake, strengthening their commitment to the network.
  • Global Liquid Staking Cap: There's also a total limit on how much of the chain's stake can be liquid at once. This "global bucket" ensures the network's stability and prevents an overconcentration of liquid assets. Want to dive deeper into these caps? Check out our Security section for all the details.