F.A.Q

We've answered some of the most commonly asked questions for staking in this F.A.Q list below.

1. What is the APY shown based on?

The Annual Percentage Yield (APY) shown for Staking is an annualized rate.

• It is computed after subtracting staking fees.

• Every staking network has a different inflation rate and staked ratio, which directly impacts the APY.

• The APY varies depending on the project. Some are not compounded automatically - users have to claim rewards and re-stake the crypto assets to compound rewards.

2. Why does the APY fluctuate?

The APY on each staking network is impacted by the following.

• Inflation rate: usually trends towards a lower bound or upper bound depending on the staked ratio.

• Staked ratio: the number of tokens staked vs. the total amount of tokens for the protocol.

• Transaction fees: the amount of fees paid to the protocol when transactions take place. It is distributed pro-rata to all stakers.

3. What are the risks involved with staking?

The main 2 types of risks associated with staking are:

• Validator uptime risk: Stakes will be slashed by a small % (usually 0.01%) if your chosen validator misses more than X% of Y blocks. Every protocol is slightly different. For example, Cosmos requires validators to sign 95% of any consecutive 10,000 blocks.

• Malicious action by validator: For example, double signing a block, will result in a large % slash (usually 5%) on all stakes with the malicious validator.

This is why it is important to pick a time-tested, trustworthy validator such as Nansen.

4. Why is there an unbonding period to unstake my assets?

Certain protocols impose a lock-up period after assets are unbonded to prevent long-range attacks. During the unbonding period, you do not earn rewards on your assets and will still remain susceptible to slashing risks.

Depending on the network parameter, unbonding period ranges from 3 days to 30 days.

5. Is there any insurance cover for Staking on Nansen?

We have a 100% SLA on uptime slashing and loss of rewards due to validator downtime. We do not provide insurance for double signing.

6. What are the fees involved?

Nansen charges different fees for each staking network due to the amount of resources required to maintain the node. The fees charged are shown on each individual protocol staking page.

7. When are you launching NSN points?

In 2025, the exact date will be shared later.

8. Will I get NSN points if I stake now?

Yes, we will retroactively award NSN points to stakers.

9. Will Nansen subscribers get points?

Yes. Similar to staking, we’ll retroactively award NSN points to subscribers.

10. I just saw a Nansen token being promoted! Did you launch one?

No! Beware of scammers. We have not launched a token, and we will not launch one in 2024. Be careful, and don’t get scammed by people claiming to represent Nansen.

11. Will you launch a Nansen token in 2025?

We have not announced anything about tokens. Always double-check that communication about Nansen comes from our official sources.