xDai is an Ethereum friendly blockchain designed for developers to easily deploy their work on xDai for fast and inexpensive transactions. Their approach has attracted many applications that would not have been possible in a gas-constrained environment.
Frequently Asked Questions
Here are answers to some of the questions our community has asked us. Get in touch if there's more you would like to know.
xDai is a stable payments blockchain designed for fast and inexpensive transactions with a unique dual-token model. xDai is a stable token used for transactions, payments, and fees, and STAKE is a governance token used to support the underlying POSDAO Proof-of-Stake consensus. To learn more about xDai, please visit their official website. You can learn more about POSDAO here.
New blocks on xDai are proposed by validators. To enable xDai to run seamlessly, validators need the technical capabilities to offer a secure, always on infrastructure.
Not everyone is able to do this. Some token holders participate indirectly by delegating the tokens they have to a validator. Validators are running a service for delegators. They typically charge a fee to cover their operational costs.
By delegating STAKE, you help secure the network. You get part of the rewards provided by the protocol for this assistance. If you are planning to hold on to STAKE for some time, delegating will help you accumulate more STAKE while contributing to the health of the network.
You are not giving away ownership of STAKE by delegating. As a validator, stakefish will never have the ability to move your STAKE.
If a validator does not perform (i.e. produce blocks), delegators will receive sub-optimal rewards for that epoch. Additionally, a validator could be kicked out of the active set if they act maliciously. In this case, delegators will not receive any rewards for that epoch. We have our own capital on the line, so we are fully incentivized to do our best to prevent underperformance.
xDai functions according to the POSDAO consensus model. Here, validators receive 30% of all rewards that they generate by participating on the xDai chain. The remaining 70% is what gets distributed to delegators.
In order to prevent any validator set manipulation, all staking-related actions are disabled for the last 4332 blocks (~6 hours) of every epoch. Staking-related actions will be enabled and available on the UI once a new epoch begins.
Undelegating (also called unbonding, unstaking or withdrawing) can be done anytime. However, you need to wait for a new epoch (~7 days) to begin for your STAKE to become transferable.
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