Q : What is staking?
A : Staking is the process that nodes require to do in order to validate transactions. Validators will be rewarded with tokens.
Q : How to stake Lition ?
A : By fulfilling the hardware and software requirements along with a certain amount of LIT tokens. The minimum requirements are detailed further below.
Q: What are the hardware requirements to run a node?
A: The hardware requirements depend on the nature of the use case; hence the sidechain owners will decide. In the case of Lition the following hardware specs are required:
- For P2P Energy use-case:
Min 8GB RAM
20Mb/s stable internet connection
- For Syndicated Loan use-case:
Min 2GB RAM
5Mb/s stable internet connection
Q : What are the software requirements to run a node?
A : Download and install the dedicated software on Linux and run an active node for at least one notarization window on compatible hardware.
Q : What do I need to stake?
A : Hardware, software, and LIT tokens. In the case of LPS, LIT tokens only are required.
Q : Can I split my tokens to stake across multiple sidechains?
A : Yes, it is possible as long as you fulfill the minimum tokens required to stake in every sidechains.
Q : What are the ways to stake $LIT?
A : There are 3 ways to stake LIT:
- Trust node,
- LPS — Lition Pool Staking.
Q : What is the minimum number of tokens required to stake?
A : The minimum number of tokens required are depending on the sidechain characteristics, in the case of Lition’s Foundation sidechains:
- Node: 1,000 LIT,
- Trust node: 50,000 LIT,
- LPS — Lition Pool Staking: 5,000 LIT.
Q : What is the maximum number of tokens one can stake?
A : Theoretically one can stake a maximum of 500,000 LIT.
Q : How can I run a Trust node?
A : Any node staking more than 50,000 LIT will be considered automatically as a Trust node.
Q : Can I run a Trust node?
A : Initially anyone can run a Trust node. However, with time, Lition Foundation might limit the number of users who can run trust nodes.
Q : What are the benefits of running a Trust node over a normal node?
A : Trust node will have two times the payout compared to a normal node.
Q : Can I stake without running a node?
A : Yes, you can stake without running a node. The Lition foundation itself will run and validate nodes on behalf of staker and will split the revenue share. If users want to participate in the Lition staking network, they can do so by sending at least 5,000 LIT tokens to the Foundation through a dedicated web application. We will use those tokens for staking within our network of sidechains and will payout the transaction costs accordingly. A little pooling fee is maintained for our hardware costs. This means you get the staking benefits without having the hassle of setting up a server connected to a stable internet connection 24/7. Depending on the length of the commitment, different reward factors are applied compared to a normal node:
- 1 Month = 1.2 Reward Factor,
- 3 Months = 1.4 Reward Factor,
- 6 Months = 1.6 Reward Factor,
- 12 Months = 1.8 Reward Factor.
Q : How often are the rewards paid out?
A : Staking rewards can be claimed roughly every 12 hours.
Q : What will the effective yield be for staking Lition?
A : Follow this link to access our staking calculator.
Q : What are the annual returns for staking?
A : The annual staking returns are depending on the network usage, however, Lition will use the Genesis Phase to guarantee a substantial return during the first stages of our Mainnet.
- Normal nodes can expect minimum returns of up to 10%,
- Pooled nodes can expect minimum returns of around 12–18%,
- Trust nodes can expect minimum returns of around 20%.
Q : How many sidechains can Lition have?
A : Lition can have infinite sidechains.
Q : How are the rewards distributed across different nodes?
A : Every staking setup will have “Reward Factor”. Based on this, rewards will be distributed across all the staking ways. Find more detailed information in our dedicated Medium article about staking.
Q : How to cancel the staking?
A: Once a node decides to stop staking, e.g. because the user wants to use the tokens on a different sidechain, the following smart contract needs to be called: UnstakeTokens(). An intuitive interface will be provided.
Q : For how long will my tokens be locked once I choose to stake my tokens?
A: You can unstake tokens anytime, however, if you choose the LPS path, different lock-up periods are offered in exchange for a higher staking rate. See the answer to “Can I stake without running a node?” for further details.
Q : I am receiving docker error
docker: Got permission denied while trying to connect to the Docker daemon socket at unix:///var/run/docker.sock: Post http://%2Fvar%2Frun%2Fdocker.sock/v1.39/containers/create: dial unix /var/run/docker.sock: connect: permission denied.See ‘docker run — help’.
A: run command
sudo usermod -a -G docker $USERand completely log out of your account and log back in.
Q : How can I stake (vesting) ? Can I stake from my ledger ?
A: We recommend using metamask as we used only metamask for testing and interacting with the main smart contract, staking including. But you can sign your transactions in any way you want. Metamask should support also hardware wallets, see here.
Q : What happens if the hardware is not powerful enough ?
A: If you run out of memory or space your node can crash (that’s normal behaviour of geth), but this can usually happened if you are sending a lot of tx through your own node, if you are validating requirements are not that high.
Q : What happens if my node stops ? Will I be banned ? Will I lose all my rewards ?
A: In case you are a validator (miner) and your node stops in normal way, it will automatically let other nodes know and you will be unvoted as validator. If something ugly happens and your node crash (e.g. segfault), you will be automatically unvoted by smart contract after 3 notary windows, in which you did not sign any block. You will always receive rewards for the blocks that you already mined.
Q : How can we secure our node ? Firewall rules…
A: Network Listening Port[Default:22001]& Constellation Port[Default:22002]should be open and Node Manager Port[Default:22003]should be open if you are creator of network if not, it can be closed.