Staking & Nomination
Token holders can earn rewards by nominating validators to share in their block rewards, or staking for governance to earn real yield from network fees.
By participating in staking, you help secure the economic foundation that enables multichain AI agents to operate reliably across multiple blockchains.
Participation Options
| Role | Minimum | What You Earn | How |
|---|---|---|---|
| Nominator | 100 $ON | 12-20% APR | Back validators, share their rewards |
| Pool Member | 1 $ON | 10-18% APR | Join nomination pool |
| Staker | Any amount | 14.7% of user fees | Stake for governance, earn real yield |
Want to run a validator? See Validators Guide for technical requirements (10,000 $ON stake, enterprise hardware, 15-25% APR)
Nominators
Back validators with your tokens and earn a share of their block rewards.
What You Get:
- 12-20% APR from validator rewards
- No infrastructure required
- Can nominate up to 16 validators
- Proportional rewards minus commission
What You Risk:
- Share in validator slashing penalties if they misbehave
- Requires active validator monitoring
Minimum: 100 $ON
Nomination Pools
Pool your tokens with others to nominate validators with as little as 1 $ON.
Benefits:
- Lower barrier (1 ON)
- Pool operator handles validator selection
- Auto-compounding available
- 10-18% APR
Trade-offs:
- Less control over validator selection
- Additional pool operator commission
Stakers (Governance + Real Yield)
Stake tokens for governance voting and earn passive income from network fees.
What You Earn:
- 14.7% of all user fees - Non-inflationary real yield
- Governance power - Vote on protocol upgrades and treasury
- Conviction multipliers - Lock longer for up to 6x voting power
How It Works:
- No minimum stake required
- Earn proportional to your stake
- Rewards come from actual network usage, not inflation
How to Participate
Option 1: Nominate Validators (100+ $ON)
Earn by backing validators who produce blocks and secure the network.
Setup:
- Bond your tokens (lock them for nomination)
- Select up to 16 validators to nominate
- Set reward destination (auto-compound or withdraw)
- Submit nomination transaction
Reward Destination:
- Auto-compound: Maximize returns by reinvesting
- Stash account: Maintain liquidity
- Controller account: Separate reward account
Option 2: Join Nomination Pool (1+ $ON)
Lower barrier entry to validator nomination rewards.
Setup:
- Browse available pools
- Review pool performance and commission
- Join pool with your tokens
- Earn rewards automatically
Option 3: Stake for Governance (Any Amount)
Earn real yield from network fees and participate in governance.
Setup:
- Lock tokens for governance voting
- Choose conviction period (longer = more voting power)
- Automatically earn 14.7% of all network user fees
- Vote on proposals and treasury spending
Conviction Multipliers:
| Lock Period | Voting Power Multiplier | Real Yield Earned |
|---|---|---|
| None | 1x | 14.7% of fees × 1x |
| 8 days | 2x | 14.7% of fees × 2x |
| 16 days | 3x | 14.7% of fees × 3x |
| 32 days | 6x | 14.7% of fees × 6x |
Understanding Rewards
Two Revenue Streams
Orbinum has two separate reward systems:
1. Nomination Rewards (Validators + Nominators)
| Source | Amount | Who Gets It |
|---|---|---|
| Block Emissions | 20% of total | Validators → Nominators (after commission) |
| Transaction Fees | Variable | Block producers → Nominators (after commission) |
| Quality Evaluation | 17.64% of user fees | Permit validators → Nominators (after commission) |
Expected APR: 12-20% for nominators, 15-25% for validators
2. Staking Rewards (Governance Participants)
| Source | Amount | Who Gets It |
|---|---|---|
| User Fees | 14.7% of all fees | All stakers proportionally |
Expected APR: Variable, grows with network usage (non-inflationary)
Nominator Reward Example
Scenario:
- You nominate: 1,000 $ON
- Validator total stake: 200,000 $ON
- Era rewards: 1,000 $ON
- Validator commission: 10%
Your Earnings:
- Validator commission: 1,000 × 10% = 100 $ON
- Remaining for nominators: 900 $ON
- Your share: (1,000 / 200,000) × 900 = 4.5 $ON per era
Annual: 4.5 × 365 ≈ 1,640 $ON (~164% APR)
Note: High APR in early network phase with low total stake. Returns normalize as network matures.
Validator Selection (For Nominators)
When nominating validators, choose carefully to maximize rewards and minimize slashing risk:
Look for:
- ✅ High uptime (99.9%+)
- ✅ Consistent block production
- ✅ Reasonable commission (5-15%)
- ✅ Strong on-chain identity
- ✅ Not over-subscribed
Avoid:
- ❌ Recent slashing events
- ❌ Frequent downtime
- ❌ Very high/low commission
- ❌ Unknown operators
- ❌ Near capacity validators
Unbonding & Unlocking
Nomination Unbonding (28 days)
When withdrawing nominated tokens:
- Submit unbond request - Initiate withdrawal
- Wait 28 days - Security delay
- Withdraw - Tokens become available
During unbonding: No rewards, cannot vote, can rebond to cancel
Governance Unlock (Immediate after lock period)
Governance stakes unlock automatically after the conviction period ends.
Risks & Protection
Slashing Risk (Nominators Only)
Nominators share validator slashing penalties:
| Offense | Penalty | Who Gets Slashed |
|---|---|---|
| Equivocation | 0.1%+ | Validator + all nominators |
| Unresponsiveness | 0.01%/session | Validator + all nominators |
| Invalid Evaluation | 0.5-5% | Validator only |
Stakers (governance) are NOT subject to slashing - only nominators face this risk.
Next Steps
- Validators - Run your own validator node
- Miners - Provide AI inference compute
- Governance - Vote on protocol changes
- Economic Model - Understand tokenomics