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Fuel the Permanent Cloud Network with Delegated Staking
The AR.IO network is redefining how we store and access data through its Permanent Cloud—a decentralized, censorship-resistant internet.
But none of this would be possible without the people who power it. Whether you’re operating a gateway or staking your tokens, every contribution counts.
Delegated staking offers a simple way for anyone to help fuel the network while earning rewards. With as little as 500 ARIO tokens, you can support a gateway operator, strengthen the network, and share in its success.
Here’s how delegated staking drives the Permanent Cloud and how you can get involved.
AR.IO Delegated Staking 101
Delegated staking is how token holders can lock up their ARIO tokens with a gateway operator to help support the operator’s stake. This lets you participate in the network without the complexity of running a gateway yourself.
Here’s why it’s important:
Strengthens Gateways: By increasing the total stake for an operator, you help them qualify for rewards and maintain network reliability.
Earns Rewards: You share in the rewards earned by the gateway operator, proportional to your contribution.
Supports Decentralization: Delegated staking ensures more people can participate in AR.IO’s ecosystem, which helps keep the network resilient and distributed.
AR.IO : A Non-Inflationary Network
One thing that sets AR.IO apart from other blockchain systems is its non-inflationary rewards model. This means rewards for staking don’t come from creating new tokens, which would dilute their value. Instead, rewards are generated from real network activity, like:
ArNS Registrations: When users buy Arweave Name System names, part of the fees contribute to the reward pool.
Protocol Fees: Gateways generate revenue through the services they provide, like data retrieval and indexing.
This model ensures that rewards are tied to value creation within the network. It’s a system built for sustainability, where growth drives rewards, not inflation.
For delegators, this means your earnings reflect the health and activity of the network itself.
How Delegated Staking Works
Delegated staking is a straightforward process, but understanding the details helps you make the most of it.
Select a Gateway Operator: Use the AR.IO Network Portal dashboard to review performance metrics like uptime, reliability, and reward-sharing ratios.
Stake Your Tokens: Lock a minimum of 500 ARIO tokens through the network’s staking interface. The tokens contribute to the operator’s total stake.
Earn Rewards: Gateway operators decide what percentage of their rewards to share with their delegators. Ratios can range from 0% to 100%, so it’s important to check an operator’s settings before staking.
Monitor and Adjust: Delegators can increase, reduce, or fully withdraw their stakes at any time. Withdrawals are subject to a 30-day lock period, ensuring stability for the network.
Early Withdrawal Penalty: If you withdraw before the 30-day period ends, a percentage of your withdrawn tokens is redirected to the protocol based on a sliding scale. The earlier you withdraw, the higher the penalty, incentivizing stake stability.
The key takeaway? Delegated staking is low-maintenance, flexible, and designed to work for everyone, whether you’re a small-scale token holder or a seasoned participant in decentralized networks.
Choosing the Right Gateway
Selecting the right gateway operator is the key to your success as a delegator. Here’s what to look for:
Performance Metrics: Use the AR.IO Network Portal dashboard to assess a gateway’s uptime, reliability, and past reward performance. Gateways with consistent uptime and strong track records are typically safer choices.
Reward-Sharing Ratio: Operators set their own reward-sharing percentages, which can range from keeping all rewards (0%) to sharing everything (100%). Choose a gateway with a ratio that aligns with your earning goals.
Reputation: Operators who communicate clearly and have a strong history of fair and transparent practices are usually more reliable.
Stake Caps and Limits: Some operators set maximum caps on delegated stakes or restrict certain wallets. Make sure your stake fits within their criteria.
No Slashing Mechanism: AR.IO does not penalize delegators with slashing. However, underperforming gateways may not earn rewards, so choosing a reliable operator is key.
How Rewards Are Earned
Rewards in the AR.IO network are straightforward:
Performance Matters: Gateway operators earn rewards by maintaining high uptime, adhering to network protocols, and serving the permaweb reliably. The better the performance, the more rewards are generated.
Proportional Distribution: Delegators earn a share of the operator’s rewards based on the amount of their stake relative to the gateway’s total stake.
Reward Sharing Ratios: Operators configure how much of their total rewards to share with delegators, ranging from 0% to 100%.
FAQs on Delegated Staking
Q: Can I delegate to more than one gateway?
Yes, you can split your stake across multiple gateways to diversify your rewards and reduce risk.
Q: What happens if my gateway disables delegation?
If a gateway disables delegation, your stake will be automatically returned to you after the 30-day withdrawal period.
Q: Can I change my stake amount?
Absolutely. You can increase, decrease, or withdraw your stake at any time. Just remember that withdrawals take 30 days to process.
Q: Will I lose my tokens if the gateway underperforms?
No. AR.IO does not use a slashing mechanism. However, if the gateway fails to perform, it may not earn rewards, which means you won’t earn either.
Ready to fuel the network? Explore AR.IO’s delegated staking options today and start earning while building the future of the internet.
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