Loom Network is bringing scalability to Ethereum now with DPoS sidechains for blockchain games and DApps. We believe usable games and DApps will play key roles in bringing mainstream adoption, hence why we are supporting this network. Loom Network has selected us as <url>one of the first external validators</url>. We have been working closely with the Loom Network team to provide a secure validator for their network.
Frequently Asked Questions
Here are answers to some of the questions our community members have asked us. Don't hesitate to reach out to us if you still have additional questions.
Loom Network launched DPoS sidechains on Ethereum to enable scalable blockchain games and DApps. Staking on Loom Network’s chains came live in February 2019. To learn more about everything Loom Network has built so far, check out this <url>blog post</url>.,
New blocks on Loom Network are proposed by validators. Validators typically have technical capabilities to put together a secure infrastructure that will be online 24/7 so that the Loom Network runs seamlessly.
Not everyone is able to do this, and so they can participate indirectly by delegating the tokens they have to a validator. In a sense, validators are running a service for delegators. Validators would typically charge a fee to cover their operational costs.
Once you delegate LOOMs, you are helping secure the network. For assisting in this, you get part of the rewards provided by the protocol. If you are planning to hold on to LOOMs for some time, delegating will help you accumulate more LOOMs while contributing to the health of the network.
You are not giving away ownership of LOOMs by delegating. We will never have the ability to move your LOOMs as a validator.
The bigger and longer capital is used for stake, the more secure a PoS network becomes. Loom Network incentivizes people to stake longer by introducing lock-up bonuses. The lock-up periods and bonuses are as follows:
2 weeks: 0% lock-up bonus
3 months: 50% lock-up bonus
6 months: 100% lock-up bonus
12 months: 300% lock-up bonus
Note that these bonus percentages are NOT the actual reward rate. For example, if you can earn 10 LOOM by locking up for 2 weeks, you can extend that lock-up period to 3 months to earn 15 LOOM (50% bonus) instead of only 10 LOOM.
Loom Network will have slashing if validators submit an invalid block, attempt a double spend, or experience a long downtime. The exact conditions and slashing rates have yet to be finalized. We have our own capital on the line, so we are fully incentivized to do our best to prevent such events. However, delegators must be aware that slashing risk will always exist.
We charge 15% on the block rewards received by our delegators. For example, if a delegator receives 100 LOOM as a reward, stake.fish will receive 15 LOOM while the delegator will get 85 LOOM. We offer one of the lowest fees of the strong proven validators.
Un-delegating (or unbonding or unstaking) can be done anytime. However, it will take approximately 2 weeks for your LOOMs to become transferable. This period exists in order to prevent delegators from staking with a bad candidate to increase the odds to validate a block and then immediately un-delegating.
If you have any questions about staking or our validator services, please do not hesitate to reach out to us. We are happy to talk with anyone and help navigate community members through this exciting new ecosystem.Get in Touch