The Akash Network is a secure, transparent, and decentralized cloud computing marketplace that connects those who need computing resources (tenants) with those that have computing capacity to lease (providers). The protocol is a Tendermint based blockchain application built with Cosmos SDK.
Akash is the first and only Supercloud for serverless computing. It is this feature that allows anyone in the world who owns a computer to become a cloud provider by simply offering their unused computing cycles in a safe and frictionless marketplace.
Reward Distribution Period
Every block (~6 seconds)
Validator Self-Bond Requirement
Figment Validator Address
Akash supports two staking wallets Cosmostation and Keplr. In this walkthrough, we’ll be using Keplr.
Figment’s Akash validator address: akashvaloper1mp0t9f4lpgu2tqa2maxk3vp8kugn8meyua86fh
AKT is on several exchanges for buying and trading AKT; you can find their full list here on their website here.
If you don’t already, install the Keplr wallet extension onto your browser. After installation, once you click on the K in your extension bar, it will open a page that looks like the one above. Follow the steps to make a new wallet or reactivate one that you already have.
To deposit or Send AKT, hit the dropout button at the top of the wallet and select Akash.
Hit the deposit button, and the wallet will pull up an account for you to send AKT to stake.
Find us in the list of Validators, set your amount, and click delegate. Double-check the details and submit. You can check your delegations on the dashboard.
That’s it! You have successfully delegated your AKT tokens.
On Akash, proposals are weighted by the proposer’s voting power (Resolve). Voting power is made of the tokens that they staked and the tokes bonded to them from delegators.
Akash belongs to the Cosmos Ecosystem. There's a curated list called “Awesome Akash” which features resources people can use to familiarize themselves with Akash and the list includes several applications they can deploy on the platform. Check it out here.
What is staking?
On a Proof of Stake blockchain, staking is the act of depositing tokens in order to become a validator; that is, to participate in proposing and attesting to transaction blocks. Anyone with a minimum necessary coin balance can validate transactions and earn staking rewards on these blockchains.
What is the name of the asset being staked?
Akash's native token, AKT, is used to stake and to participate in on-chain governance.
Which type(s) and what rate of rewards can I expect?
Stakers currently earn newly-issued AKT tokens. As of Sep 25, 2020, stakers are effectively earning a yearly rate of ~250% staking rewards. This will likely decrease as more AKT is staked. Currently under 20% of the network is staked, and the new-token-issuance rate is 50%, which means that the token supply is increased by 50% yearly and 98% of the new issuance is captured by stakers. If the target staking ratio of 67% is reached (ie. 67% of the supply is staked), stakers will earn approximately 73% in yearly staking rewards. You can see the number of bonded tokens, the token supply, and the inflation rate here: https://akash.aneka.io
When are staking rewards enabled? When are transfers enabled?
Staking rewards and token transfers have been enabled since Sep 25, 2020.
How long does it take to unstake?
It takes 21 days to unstake from the moment you initiate the unbonding process. During this period, you will not earn rewards. Once the process is complete, you can transfer/trade your AKT tokens.
Are there any risks associated with staking Akash?
Yes, a portion of your staked AKT can be slashed. There are two ways this can happen:
- 1.If you delegate to a validator that goes offline for over 16.5 hours (assuming 6.25s blocktimes), you will lose 0.01% of the tokens you have delegated to that validator.
- 2.If you delegate to a validator that signs the same block twice with the same key, you will lose 5% of the tokens you have delegated to that validator.
Figment insures our clients from slashing and has never had a slashing event.
Do I maintain custody of my AKT tokens? Who or what controls my staked AKT token?
Figment has partnerships with a number of top-in-class custodians. Please contact [email protected] for more inquiries. The Akash protocol takes control of your AKT tokens while you are staking. If you unbond your tokens, this process will take 21 days before the protocol returns your tokens to you. While your AKT tokens are staked, you may participate in on-chain governance by voting on different proposals.
What is the rate of new issuance (aka "annual inflation") for AKT? How does the token supply change?
Akash is reporting 52% inflation, but the average block time changes the effective new issuance. As of Sep 25, 2020, Akash is effectively issuing new tokens at an annual rate of 50% of the total supply. 98% of the new issuance is distributed to stakers, and 2% is held in the community pool (which may be distributed arbitrarily via on-chain governance proposal). Under 67% of the token supply is staked, so the reported inflation (aka new issuance rate) will increase to a maximum of 58%. If 67% of the supply is staked, the inflation will begin to decrease before bottoming out at 46%.
What affects future yields?
Rewards comprise inflationary rewards and include a share of the total network spend that users pay.
How is Akash governed?
The Akash network uses on-chain governance that is nearly identical to that of the Cosmos Hub. Proposals are created to either coordinate together with a signaling proposal, spend funds from the community pool, or change various network parameters (economic or otherwise). 100 AKT must be deposited as a bond for an Akash proposal to be voted upon. Voting lasts for 14 days. 33.4% of staked AKT must participate in order for the proposal to be valid. A simple majority is then required for the proposal to pass, but 33.4% can veto the proposal. You can watch the proposal activity here: https://akash.aneka.io/proposals