Staking on Saga

Saga depends on stakers for the economic security of the Mainnet and, by extension, the security of each Chainlet. To ensure sufficient economic security for the system, Saga employs a staking inflation schedule very similar to that of the Cosmos Hub. The network targets a specific stake rate by varying the inflation rate. The annual inflation is capped between minimum and maximum rates. If more than ⅔ of SAGA is staked, the block rewards decrease gradually down to a floor of a minimum rate of annualized inflation. If less than ⅔ of SAGA is staked, the block rewards increase gradually up to a ceiling of a maximum annualized inflation.

With the Cosmos Hub, each validator posts a commission that they take from each delegator. With Saga, the network determines a universal commission rate that every validator takes from their delegators. This design is due to the fact that in our system, each validator is already posting their Musical Chair auction price. We do not think asking delegators to choose between a high-cost validator with low commissions and a low-cost validator with high commissions is a productive tradeoff. Saga simplifies the validator selection process by keeping the commission rate consistent across all the validators.

Selecting the right validator will be key to maximizing delegator rewards. As mentioned in the Musical Chairs section, delegators delegated to validators in the Losing Set of Musical Chairs may not earn any inflation rewards. It is important for delegators to redelegate to validators who post the cheapest prices.

A commission still exists to ensure that the Saga validators have ways of economically sustaining themselves without any Chainlet activities. Over time, we expect validators to price Chainlets at-cost or below-cost, and having an inflation commission buffer helps the Chainlet price decrease to such levels.

Staking your Saga on Keplr

First of all you need a Keplr wallet which supports Cosmos SDK based blockchains If this is your first time using Keplr Wallet, follow this tutorial to install and start using it.

To stake your SAGA, first go to your Keplr extension and click on "Manage Portfolio in Keplr Dashboard", it should bring you to https://wallet.keplr.app/chains/saga

In the Keplr dashboard you should see all the information about: Total SAGA Amount, Staking Amount, Available Balance and Claimable Rewards.

Click the Stake button as shown in the picture.

You should see a list of validators. Choose a validator by either typing the name of your desired validator into the search bar or by scrolling down the list.

If you select one of the top 10 validators, you may encounter a notice like this, don't worry, you can always choose this validator for staking. However, this notice serves as an encouragement to consider other validators for a more decentralized network.

Once you’ve selected your validator, fill out the number of $SAGA that you’d like to stake, select “Stake” once again and then approve the transaction.

If everything goes correctly, you should see your staking amount in the Staking Amount section.

Please note that staking will lock up your assets for 21 days. You will need to undelegate to make your staked assets liquid again, which also takes 21 days to complete.

Claiming Staking Rewards

To claim the reward from your staking (after it matures a little bit), click the claim button in the Claimable Rewards section (you should have some SAGA before claim for the Tx fee).

In the end, you should have your Available Balance increased by the value of your claim (and ready for a another round of stake 😉).

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