Polygon
Layer 2 Solution, Ethereum Ecosystem
Polygon is an EVM compatible sidechain and a Layer-2 scaling solution for Ethereum. It was designed to increase transaction throughput and lower transaction fees for Ethereum users and developers by connecting stand-alone and secured blockchains to the network.
The protocol uses Proof-of-Stake (PoS) consensus mechanism for the verification of transactions. It started from an adapted implementation of the Plasma framework for Ethereum, but the “vision” of the development team is to provide side chain scaling solutions for blockchains in general.
APY | ~5% |
Total Supply | Capped to 10B, currently 8B |
Compounding | Rewards claimed automatically, restaking manually |
Compounding Frequency | 1 Checkpoint (<1 hour) |
Reward Distribution Period (Payout frequency) | 1 Checkpoint (<1 hour) |
Unbonding Period | 82 Checkpoints (~3-4 days) |
Figment Validator Address | 0x6ae6c540c7b110d5c01cb9bc23297a013f9f4982 |
Recommended Wallet | |
Slashing Penalty | No slashing involved |
Burn Mechanism | For each transaction, the base fee gets locked on the burn contract |
Validator Diversity | Currently only 100 validators comprise the active set |
You are probably familiar with Polygon, an EVM compatible sidechain and a Layer-2 scaling solution for Ethereum. Staking Polygon just got easier! The guide below details what Polygon is, and how to stake Polygon (MATIC) on the Ethereum mainnet.
Polygon is designed to increase transaction throughput and lower transaction fees for Ethereum users and developers by connecting stand-alone and secured blockchains to the network.
The protocol uses Proof-of-Stake (PoS) consensus mechanism for the verification of transactions. It started from an adapted implementation of the Plasma framework for Ethereum, but the “vision” of the development team is to provide side chain scaling solutions for blockchains in general.
Along that line, Polygon provides many solutions and useful features such as:
- Deploy existing blockchain networks and develop custom blockchains
- Enable communicate between Ethereum and other blockchains
- Help existing blockchain networks to become compatible with Ethereum
Polygon is currently one of the most popular protocols for blockchain development and tooling. With a recent fundraise of $450MM, Polygon is focusing on mass adoption of Web 3 applications through scalability. Currently, Polygon is running more than 7,000 dApps and is home to popular DeFi projects such as lending platform Aave or NFT marketplaces including OpenSea and Mark Cuban’s Lazy.com.
- There is no slashing enforced
- Unbonding period: 80 checkpoints (average of 2 days, or slightly less)
- There is a daily average of 50 checkpoints on mainnet
- Figment has an 8% commission fee
- You will need some ETH in your wallet for fees, as staking MATIC happens on the Ethereum mainnet
As a disclaimer, Polygon (MATIC) is an ERC-20 token and staking takes place on the Etheruem mainnet, meaning users will have to pay bonding and unbonding fees in ETH on the Ethereum mainnet.
For this guide, we will be using the MetaMask wallet. This wallet is non-custodial, and requires the user to keep track of their own mnemonic phrase, and password. If you need to install the MetaMask extension, download it here. Once installed, if you are creating a new wallet, MetaMask will walk you through the wallet creation process.
As a reminder, creating a new wallet will prompt you to generate a 12 or 24 word key phrase. This is a crucial step of the wallet creation process. Please ensure to backup your 12-word or 24-word key phrase. Please also ensure that you backup your wallet password.
To begin staking Polygon (MATIC), you will need to have MATIC and Ethereum on the Ethereum Mainnet in your MetaMask wallet. Once your wallet is funded with MATIC and some Ethereum for fees, head over to https://wallet.polygon.technology/staking
Once you are on the Polygon staking dashboard with a funded wallet, click “Connect to a Wallet”
Click “Delegate” on the far right side of the dashboard, and enter the amount of MATIC you wish to stake. Keep in mind, since we are on the Ethereum mainnet, you will also need some ETH for fees throughout this process.
First you will need to approve the transaction, which requires a fee in ETH. When you are ready to proceed, click “Continue” and proceed with paying the ETH fees. At the time of this transaction, I paid ~0.0036 ETH (~$11 USD) for the approval transaction.
Once the transaction is confirmed, you will advance through the staking interface.
Once you approve the initial transaction, proceed with pressing “Delegate” and continue moving through the staking interface. This will prompt a final ETH fee to finish the staking process.
Continuing with the delegation transaction, at the time of this transaction, I paid ~0.014 ETH (~$47 USD) for the delegation transaction.
Once the transaction confirms on the blockchain, congratulations! You successfully have staked MATIC on the Ethereum mainnet to the Figment validator.
On the polygon staking dashboard under “My Account” you will be able to view your active stake. This view is also where you can unbond, restake, or withdraw staking rewards.
Off-chain and informal governance of protocol parameters currently takes place in the Validator ecosystem. For instance, proposals results in a vote from Validators only in a dedicated Discord channel. Polygon core team members and Validators then coordinate to implement outcomes of the vote.
What is protocol staking?
On a Proof of Stake blockchain, protocol 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? What is being used for?
The native token on Polygon is called MATIC. MATIC is used to pay for transaction fees, participate in network governance, and staking in the Proof of Stake consensus mechanism.
Where can I explore the network and create a Polygon wallet?
Explorer: https://polygonscan.com/ Wallet: https://metamask.io/ (recommend using with Ledger hardware wallet) Staking Dashboard: https://wallet.polygon.technology/staking/
How long does it take to stake and unstake?
The unbonding period on Polygon is currently set to 82 checkpoints. Every checkpoint takes about 34 minutes but this could be further delayed up to approx. 1 hour if the Ethereum network is congested.
Will I keep receiving rewards after I unbond?
No. Once you unbond you stop receiving rewards.
Which type(s) and what rate of rewards can I expect?
Stakers are expected to earn newly-issued MATIC tokens and platform fees with an estimated 8% APY. Rewards vary significantly based on the total supply of tokens being staked. You can use the Staking Rewards Calculator to estimate your rewards.
When do rewards get distributed?
Rewards are distributed whenever a checkpoint is submitted, which occurs every 34 minutes approx. To track checkpoints on the staking contract click here.
How is staking income disbursed?
Once the unbonding process is complete and rewards are claimed, tokens are automatically transferred to your account.
Is staking income liquid or automatically staked?
Rewards are distributed at every checkpoint, which is currently every 34 minutes approx. Rewards are claimed automatically, restaking however must be done manually.
What affects future rewards?
Rewards earned change at each checkpoint since they are strictly related to the total locked supply in the network. Therefore, rewards are expected to vary significantly as more MATIC are staked. Rewards are initially higher and Will keep decreasing over time as the percentage of locked supply increases.
Can I lose potential staking rewards?
Once the unbonding period is finalized, if you don’t wish to redelegate, your rewards are automatically claimed and transferred to your account. Validators instead might be subject to slashing penalties that can affect your staking rewards. Figment protects clients from slashing thanks to an on-chain and off-chain staking coverage and has never incurred in a slashing event.
Can my staked MATIC be slashed (seized or destroyed)?
There is currently no slashing on MATIC staking.
What is the rate of new issuance (aka "annual inflation") for MATIC? How does the token supply change? There is a targeted 13.09% inflation rate. Polygon allocates 1.2 billion tokens as staking incentives for the first five years.
What is the total supply of the MATIC token?
The total supply of MATIC tokens is 10 billion, of which 12% is allocated to fund the staking rewards for the first 5 years. The first year will see the maximum number of tokens allocated as staking rewards; at the end of this 5 years period transaction fees should support validators/delegators without the need of tapping into the network’s treasury. Do I maintain custody of my MATIC tokens? Who or what controls my staked MATIC token? Yes, you always maintain custody of your MATIC tokens, although tokens will be locked within the protocol throughout the unbonding time. Figment has partnerships with a number of top-in-class custodians: For inquiries, please contact [email protected]
How are decisions about Polygon made and executed?
Currently, off-chain and governance discussions happen at a validator level through a dedicated Discord channel and a forum. Votes and changes implementations are handled by the Polygon core team and validators.
Last modified 4mo ago