How to Earn KAVA Staking Rewards

Scott Stuart
Dec 13, 2019 · 3 min read

A major spotlight has been set on Proof of Stake (POS) tokens such as Tezos (XTZ), Cosmos (ATOM), and KAVA. Earning interest on your crypto assets however isn’t always straight forward.

One trend we are seeing in this area is exchanges, including the majors like Coinbase, Binance, Huobi Global, and Kraken now offering staking to their users.

While exchanges offering staking is an excellent service to their users, it comes with its own opportunities and costs relative to other options. This guide explains the benefits and costs between exchanges, wallets, and other staking solutions for KAVA users.

Image for post
Image for post
Binance.com staking product

Exchanges

Benefits

  • Pooled staking assets means you may be able to withdraw rewards sooner.

Costs

  • Forfeit voting rights.
  • Centralized. Custodial risk.

Links

Wallets

Image for post
Image for post
Cosmostation.io Wallet Product

The first risk is called slashing, which are in-protocol penalties for validator misbehavior. The two types of misbehavior are liveness (going offline for too long) and double signing (equivocating about the state of the blockchain).

  • Liveness has penalty of 0.05% which is relatively small.
  • Double signing has a penalty of 5.0% which is considerably larger.

When you bond your tokens to a validator your tokens can be slashed.

The second risk is liquidity. When you bond your tokens, they remain in a bonded state for 21 additional days after you unbond them. So, if you bond your tokens and then want to transact with them, you need to plan ahead.

Benefits

  • It is clear what percentage of staking rewards wallets keep.
  • No custodian risk.

Costs

Links

Do it Yourself

Benefits

Costs

  • Requires a hardware and management cost to running a validator

Links

This guide is meant to be a living document. If you think a wallet, exchange, or validator documentation should be added please reach out to hello@kava.io

Kava Labs Blog

This publication features news and articles from the Kava…

Scott Stuart

Written by

Work on Product at Kava Labs Inc.

Kava Labs Blog

This publication features news and articles from the Kava Labs team. Kava Labs is a developer of the Kava blockchain, the first cross-blockchain DeFi platform.

Scott Stuart

Written by

Work on Product at Kava Labs Inc.

Kava Labs Blog

This publication features news and articles from the Kava Labs team. Kava Labs is a developer of the Kava blockchain, the first cross-blockchain DeFi platform.

Medium is an open platform where 170 million readers come to find insightful and dynamic thinking. Here, expert and undiscovered voices alike dive into the heart of any topic and bring new ideas to the surface. Learn more

Follow the writers, publications, and topics that matter to you, and you’ll see them on your homepage and in your inbox. Explore

If you have a story to tell, knowledge to share, or a perspective to offer — welcome home. It’s easy and free to post your thinking on any topic. Write on Medium

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store