Band
Cosmos SDK
Band Protocol is a cross-chain data oracle platform that aggregates and connects real-world data and APIs to smart contracts. Based on the Cosmos SDK, BandChain allows efficient, flexible, and scalable data querying secured through cryptographic proofs. From the beginning, Band Protocol strived to become the go-to decentralized oracle for dApps across multiple blockchains by ensuring maximum security, speed, and low cost. It essentially occupies the same use-case on IBC and other future chains that Chainlink originally occupied on Ethereum.
APY | ~10% |
Compounding | Manual |
Reward Distribution Period | Every block (~6 seconds) |
Unbonding Period | 21 Days |
Delegation Requirements (Min-Max) | min. 10 BAND |
Validator Self-Bond Requirement | 1 BAND |
Inflation | 7-20% depending on staking participation |
Figment Validator Address | bandvaloper1zm5p8gg3ugjcdwz9yrxaf6fdptxa4gw04rplr9 |
Recommended Wallet |
Double Signing | 5% |
Downtime | 0.01% |
Double-signing jail time is permanent.
If you have BAND tokens, they will likely need to be converted from Ethereum-based ERC-20 tokens to the native BandChain token in order to stake and delegate. You can swap liquid BAND tokens back to ERC-20 at any time. The Band Protocol team has published this guide for swapping BAND tokens.
If your BAND tokens are on an exchange, you'll need to transfer them to your Ledger hardware wallet to prepare to stake. Once your tokens are in your control (ie. not on an exchange), you can begin to simple process of delegating stake to the validator(s) of your choice. CosmoScan, BandChain's native explorer, will enable you see to transaction and validator activity on the BandChain network, and also to delegate.
If you're prepared to delegate, this is Figment's validator address:
Otherwise, follow these steps.
Connect your Ledger hardware wallet, enter the pin code, and open the Cosmos app. If you're not prepared for this step, check out our guide for using your Ledger here. Then click 'connect' in the top right corner of CosmoScan.
Once connected, you'll see your BAND address at the top right side of the screen:
If your tokens are on an exchange, begin by sending a small number of BAND tokens to your new BandChain address. If your tokens are ERC-20, you'll need to swap your tokens before you can stake them. Once you have tokens, you can select your validator(s) and delegate.
Select the Figment validator from the validator list or head there directly if you want to delegate to Figment. Once on your validator's page, click 'Delegate.'
Choose the number of BAND tokens to stake and delegate. Remember that it will take 21 days to unbond once you are staking. Click next, and then confirm your transaction on your Ledger hardware wallet.
Governance is accomplished by BAND-holder voting. Token holders are entitled to propose and vote on in-network referenda. Outside of network upgrades, votes are [sometimes] held to decide on how to use the community spending pool funds. The community spending pool is funded by 2% of BandChain block rewards.
Band is the Cosmos SDK’s answer to Chainlink’s model of providing reliable oracle services to any protocol or service that requests them. As such, it has over 25 partnerships and integrations with a diverse number of exchanges, IBC-enabled protocols, and validators.
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?
Band Protocol’s native token, BAND, is the name of the asset being staked. Notably, the Ethereum-based ERC-20 version of BAND token must be swapped to the native token before tokens can be natively staked to BandChain.
Where can I explore the network and create a BAND wallet?
Why Stake BAND?
BAND may be staked to earn new issuance ("inflationary") subsidies. It means that the BAND supply will increase after each new block is minted and stakers will capture the majority of newly issued BAND. Generally, you will earn around 11% annually on your staked BAND, but that can change depending on how much total BAND is staked relative to the ideal ratio of 66% of total tokens.
Stakers will also capture fees from network transactions, and as Band Protocol transaction volume increases, BAND stakers will earn more than just new issuance subsidies. BAND token also gives stakers the right to vote on policy decisions on how the Band Protocol will operate and the distribution of community funds.
How long does it take to stake and unstake?
Similar to most Cosmos SDK chains, from the moment you initiate the unbonding process, it takes 21 days to unstake. During this time you will not earn rewards. When the process is complete, you can transfer/trade your BAND tokens. Note that while you can unbond any chunk of your total staked balance, you can only have a maximum of 7 pending unbonding requests at a time.
However, if you want to simply re-delegate BAND to another validator, you are free to do so and may begin to earn rewards without being restricted by the 21-day unbonding period. This switch to a new validator is instantaneous, and is designed to allow delegators to switch validators for any reason at all.
When are staking rewards and transfers enabled?
Transfers are currently enabled. Staking rewards were fully enabled when the mainnet launched.
How is staking income disbursed? Is staking income liquid or automatically staked?
Rewards are distributed after each new block is produced. Your staking income will accumulate as a claimable balance, but rewards must be claimed before being available for token transfers or further staking. The dynamically increasing balance of your staking rewards is independent of your primary BAND balance, and is not factored into your staked balance until after you claim it and delegate it to a validator.
Can I lose potential staking rewards?
Rewards may be lost in the event of a slashing event, which may result in further penalties to reward-earning capabilities. These events include double-signing, downtime, and unresponsiveness.
Can my staked BAND be slashed (seized or destroyed)?
Yes.
- 1.Your assets will be slashed by 5% if your validator breaks a protocol rule by “double-signing.” You can only be punished for this once because your validator will be permanently removed from the active set and you will need to redelegate in order to continue staking.
- 2.Your assets will be slashed by 0.01% if your validator breaks a protocol rule by being offline for approximately 25 hours (ie. 28,500 out of 30,000 blocks missed). At this point your validator will be temporarily removed from the active set of validators and you will not earn rewards until your validator reactivates (or until you redelegate).
Figment insures our clients from slashing and has never had a slashing event.
What is the rate of new issuance (aka "annual inflation") for BAND? How does the token supply change?
BAND’s annual inflation rate fluctuates from 7% to 20%, with regular adjustments in the interest of maintaining 66% of the total coin supply staked. Essentially, interest is adjusted upward or downward to incentivize BAND holders to collectively stake at or close to the 66% mark of total value locked. If more than 66% of tokens are staked with the network, the interest rate decreases incrementally, and vice-versa.
Do I maintain custody of my BAND tokens? Who or what controls my staked BAND token?
Yes, you maintain custody of your BAND tokens at all times, but your tokens will be locked by the protocol during staking. This means that before you can unbond to transfer your assets (to trade or pay using BAND), you will first need to wait for a 21-day period for the tokens to become liquid.
Figment has partnerships with a number of top-in-class custodians. Please contact [email protected] for more inquiries.
How are decisions about Band Protocol made and executed?
BAND uses token voting for on-chain governance. Governance proposals are set forth in CosmoScan, where they can be voted on by BAND holders.
Last modified 5mo ago