Why Stake?
CAGA employs a Proof of Authority (PoA) consensus mechanism, where a network of trusted validators secures transactions and maintains network integrity. Staking plays a crucial role in this system, incentivizing validators, promoting network stability, and potentially influencing governance decisions.
Validator Requirements: To become a validator on the CAGA network, individuals or entities must stake a minimum of 500,000,000 CAGA tokens. This stake serves as a security deposit, demonstrating commitment to the network and aligning financial interests with its long-term success.
Rewards: Validators earn rewards in the form of CAGA tokens for their contributions to network operations. These rewards are distributed proportionally based on the amount of stake, performance, and overall network activity. The reward system is designed to ensure fair compensation while incentivizing continuous, reliable validator participation.
Slashing: To deter malicious behavior or negligence, CAGA implements a slashing mechanism. Validators can lose a portion of their staked CAGA tokens for actions that harm the network. Specific conditions that may trigger slashing include:
Double-signing blocks (attempting to validate conflicting transactions)
Prolonged downtime or unresponsiveness
Security breaches or attempts to compromise the network
Unstaking: Validators wishing to cease their participation can initiate an unstaking process. There is typically a designated unstaking period during which the staked tokens remain locked. This mechanism helps maintain network stability by preventing sudden, large-scale withdrawals of stake.
Why Staking Matters
CAGA's staking model offers several benefits to both individual participants and the network as a whole:
Security: Staking promotes responsible validator behavior as they have a direct financial stake in maintaining network integrity.
Stability: The lock-up mechanisms and potential for slashing discourage sudden fluctuations in the validator pool, ensuring a more reliable and consistent network.
Incentivization: The reward system attracts and retains dedicated validators, ensuring the network has sufficient resources to process transactions efficiently.
Alignment: By potentially linking stake to governance, CAGA fosters a sense of ownership and aligns the long-term interests of stakeholders.
Important Notes:
The specific parameters of CAGA's staking system (minimum stake, reward rates, slashing percentages, unstaking periods) may be subject to adjustments over time to optimize network health and performance.
CAGA is committed to providing clear and transparent information regarding its staking mechanism, including regular updates and educational resources for users.
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