Secret Network is a blockchain protocol that enables decentralized applications to perform encrypted computations. Secret contracts can take encrypted inputs and produce encrypted outputs, without exposing any data while it is in-use.
Secret Network was built with the Cosmos SDK using Tendermint for consensus, and is governed by SCRT token holders.
Reward Distribution Period
Every block (~6 seconds)
Validator Self-Bond Requirement
If over 67% of the supply is staked, inflation will begin decreasing from 15% to 7%
Figment Validator Address
Staking SCRT now is the best way to maximize your staking rewards, since the network is currently issuing over 25% in yearly rewards to stakers (with only about 12% network inflation). This is because less than half of all SCRT tokens are participating in staking today.
There are few ways to stake. Using Secret’s CLI (command line interface), you’ll have the most control, but it’s the least user-friendly option. In this guide we’ll be using the Keplr wallet to delegate SCRT to Figment’s validator.
Keplr is a Chrome browser extension that enables users to connect to different Cosmos-based chains like Secret Network.
You can use your Ledger device, wallet file, or you can use Keplr to create a new account. We recommend using a Ledger hardware wallet to secure your funds, and Keplr has provided instructions for using your Ledger here.
Once you have connected your wallet to Keplr, click ‘Secret Network’ in the left menu, search for “Figment,” and then click ‘manage’ to indicate the number of SCRT tokens you intend to delegate. Here’s a direct link to Figment’s Secret Network validator in Keplr.
That’s it! You will now begin earning SCRT rewards for staking. You can redelegate anytime, but only once every 21 days. You can also begin unbonding anytime, but the process also takes 21 days before your SCRT will be unstaked.
Secret uses the base Cosmos Hub model for governance and voting. The governance committee has a standing meeting every Wednesday at 15:00 GMT/11:00 EST in the Discord meeting room.
Validators, token holders, and staked token holders can vote on governance using cli, their ledger, or through keplr wallet.
- Click Vote on the proposal of choice to vote on
- Click confirm and approve on the transaction details
Secret Network can already boast 14 projects building on its platform and has an ecosystem roadmap to support projects and provide more information on how it will be built out.
What is staking?
On a Proof of Stake blockchain, staking is the act of depositing tokens into a smart contract on the chain to become a validator; thus participating 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?
Secret Network's native token, SCRT, is used to stake and participate in on-chain governance.
Where can I explore the network and create a Secret wallet?
How long does it take to stake and unstake?
From the moment you initiate the unbonding process, it takes 21 days to unstake. During this time you will not earn rewards. Once the process is complete, you can transfer/trade your SCRT tokens.
Which type(s) and what rate of rewards can I expect?
Stakers are earning newly-issued SCRT tokens at a yearly rate of 27% as of March, 2022.
When are staking rewards and transfers enabled?
Staking rewards and transfers are both currently enabled.
Can I lose potential staking rewards?
Yes. If the validator you delegate to is offline for over 4 consecutive hours, the validator will be jailed, and will not earn rewards during this period. After ten minutes, the validator operator must submit a transaction to resume operations in order for delegators to resume earning rewards.
Can my staked SCRT be slashed (seized or destroyed)?
Yes, a portion of your staked SCRT can be destroyed. There are two ways this can happen:
- 1.If you delegate to a validator that is offline for over 4 consecutive hours (assuming 6s block times), 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.
What is the rate of new issuance (aka "annual inflation") for SCRT? How does the token supply change?
Secret Network reports 15% inflation, but the average blocktime can change the effective new issuance rate. As of March, 2022, Secret Network is effectively issuing new tokens at an annual rate of 15% of the total supply. 88% of the new issuance is distributed to stakers, 2% is held in the community pool which may be distributed arbitrarily via on-chain governance proposal, and there's additional 10% distribution to a foundation tax.
Under 67% of the token supply is staked, so the reported inflation (aka new issuance rate) has increased to reach the maximum of 15%. If over 67% of the supply is staked, the inflation will begin to decrease before bottoming out at 7%.
What affects future yields?
Delegators will continue to earn inflationary rewards for ten years after launch. After this date, the rewards will be created from transaction fees on the network. Depending on the adoption rate of this network, rewards will vary.
Do I maintain custody of my SCRT tokens? Who or what controls my staked SCRT token?
Figment has partnerships with a number of top-in-class custodians. Please contact [email protected] for more inquiries.
The Secret Network protocol takes control of your SCRT 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 SCRT tokens are staked, you may participate in on-chain governance by voting on different proposals.
How are decisions about the Secret Network made and executed?
The Secret Network uses on-chain governance that is nearly identical to that of the Cosmos Hub. Proposals are created to either coordinate with a signalling proposal, spend funds from the community pool, or to change various network parameters (economic or otherwise).
100 SCRT must be deposited as a bond for a Secret Network governance proposal to be voted on. Voting lasts for 7 days. 33.4% of staked SCRT must participate in order for the proposal to be valid. A simple majority is then required for the proposal to pass, but 33.4% of the voting power can veto the proposal. Governance discussions take place on the Secret Network forum: https://forum.scrt.network