Announcing Staking Support for Akash
Why we joined Akash
‘Akash’ translating to sky/open space in Sanskrit is just that: a decentralized, open source, cloud platform that aims to challenge the oligopoly of Microsoft Azure, AWS and Google Cloud Platform (GCP) in the $286 billion cloud computing market. It does this by creating a marketplace, where cloud providers (providers) can lease their computing power to users (tenants). Akash refers to this marketplace as the ‘Airbnb of server hosting’.
The Akash marketplace functions by conducting reverse auctions wherein the tenant creates orders for computing power, and providers bid on these orders. When the tenant chooses a provider, they create a lease. After this, the user deploys a Docker container on the Akash Container Platform, which is a deployment platform for hosting and managing containers. Here, users can run any cloud native application and access a range of cloud management services like Kubernetes. The Akash token is used as the standard for payment of these leases.
The selling point and what we think makes Akash a serious candidate for disruption in the gargantuan cloud computing industry is its cost. Currently, hosting on Akash costs a third of what it does to do so on AWS, Azure and GCP. The reason for this is that Akash sources their computing power from unutilized capacity of data centres, that would otherwise sit idle. The reverse auction mechanism also helps in lowering prices. This tool compares the current price of the big three to Akash.
If Akash can keep its costs low and gain traction it has the potential to compete with some of the biggest cloud providers and even a small market share gain would mean dramatic usage for the network. Akash also presents an opportunity for Web 3 and 2 applications alike to decentralize a huge point of centralization, which is cloud storage.
About Staking on Akash:
Validating Rights: The weight of validators is determined by the amount of staking tokens (AKT) bonded as collateral.
AKT Inflation: 54% at genesis. Inflation rate reduces everyday and halves every 3.75 years.
Reward Rate: Rewards from staking AKT will vary depending on the inflation and total amount of tokens that are staked at a given time. Learn more about the details of staking reward rates for chains built using Cosmos SDK here.
Chorus Commission: 8%
Withdrawal Delay: After withdrawing, your staked funds will only become accessible after the unbonding period (usually 21 days) has passed.
Slashing: You can get slashed (loss funds) in case the validator you are delegated to commits an offense. Make sure to do due diligence to minimize this risk.
Re-Staking: You need to withdraw rewards and re-stake them with some frequency if you want to make use of compounding returns.