Polkadot staking has successfully launched. Validator elections has been held and issuance of first rewards has been started. If you have not nominated yet it is a good time to do it now.
P2P Validator has more than three years of experience as a non-custodial staking provider. We make staking clear and attractive to simplify the process, incentivizing token holders to secure the network. The main goal of our staking strategy is maximizing rewards for token holders.
To reach that goal in Polkadot, we have been validating Kusama since the first day to polish our approach. Currently, we operate over 25 Kusama nodes with 300,000 KSM nominations and provide ~15% benefit for our nominators compared to average.
Below I will briefly describe a temporary approach we are taking while DOT transfers are not enabled.
Nominate P2P to take part in this exciting journey.
In Polkadot nominators don't choose the amount delegated to a particular validator. Instead, they select preferred validators and their bonded stake automatically spreads amongst them to achieve an optimal distribution. Each token holder can pick up to 16 targets and the system will decide which ones will receive a delegation and the amount.
Nominations represent stake-weighted voting for validators who compete for the active set. In the long term validators in the active set receive equal rewards meaning that the least staked node can potentially be more efficient.
For example, assuming 0% commission, a nominator with
10 000 DOT will receive 50% if the total stake of a validator is
20 000 DOT and only 25% if
40 000 DOT. But, if a staking provider does not have enough votes it can remain outside of the active set.
To provide sustainable services validators need to find an optimal relation between the number of nodes and their total nominated stake. We run multiple nodes to provide an even distribution of stake for our nominators.
The lower threshold of nominated stake decreases as the number of available seats in the active set increases and we will adjust to it retaining the number of our active nodes to be always one unit higher than the number that can win in elections.
The reserved validator will enter the active set if it is expanded or more token holders vote for these nodes. Once this happens tokens will be distributed amongst the higher quantity resulting in a lower stake on each node. In this case nominators get a higher share in it. To explain the idea let's look at an example, which is simplified for better understanding.
Let's assume that
12 000 DOT is required to win in elections and
30 000 DOT is staked with three validators two of which are in the active set while the third one is in reserve. In this case, tokens will be evenly distributed among the two active ones resulting in
~15 000 DOT staked with each of them.
If nominators vote for these three nodes with an additional
6 000 DOT or the number of validators in the active set increases, the reserved validator will most likely win in the next elections. Stake of nominators will be redistributed resulting in
~10 000 DOT per node and nominators will obtain a higher share. We will set a new reserve node that nominators can include in their nomination list in case of future changes.
This temporary strategy will help us to remain flexible in the changing conditions of the network optimizing staking return for nominators who included all validators.
Currently, we have ten nodes, which you can add to your nomination list.
P2P Validator is a world-leading non-custodial staking provider securing more than $3 billion by over 10,000 delegators/nominators across 25+ high-class networks. We have been present in all Polkadot testnets and have been actively participating on Kusama network since the beginning. P2P Validator invested its own funds in Polkadot in 2017 and intends to support the network in the long term.
Stake DOT with us: https://p2p.org/polkadot
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<p>As part of the Technical Contributor Phase of NuCypher’s <a href="https://blog.nucypher.com/come-and-stake-it-incentivized-testnet/?utm_source=p2peconomy">Come And Stake It (CASI) Incentivized Testnet</a>, <a href="https://p2p.org/?utm_source=blog&utm_medium=economy&utm_campaign=NuCypher-monitoring">P2P Validator</a> has collaborated with <a href="http://www.nucypher.com/">NuCypher</a> to provide an inexpensive and powerful <a href="https://github.com/p2p-org/nucypher-monitoring">suite of self-hosted NuCypher node monitoring and alerting services</a> using Prometheus and Grafana. This suite is free and open-sourced so that anyone can make use of it to manage their NuCypher node infrastructure.</p><h2 id="the-need"><strong>The Need</strong></h2><p>The NuCypher Network is a decentralized network of nodes that uses proxy re-encryption to provide secrets management and dynamic access control services. The network facilitates end-to-end encrypted data sharing between parties without exposing plaintext data or private keys to the nodes.</p><p>NuCypher nodes are incentivized to maintain high uptime and availability to readily provide re-encryption services. Persistent downtime will cause nodes to forgo inflation rewards and policy fees. Therefore, identification and resolution of availability issues quickly is a requirement. This solution is aimed at those who independently set up and run the Worker according to the <a href="https://docs.nucypher.com/en/latest/guides/network_node/network_node.html">NuCypher documentation</a>, but who do not have enough experience to implement monitoring and alerting on their own. After successfully running a Worker node, the user should be able to check the state of their node and receive timely alerts about issues that need to be addressed immediately.</p><h2 id="the-solution"><strong>The Solution</strong></h2><p>Our goal was to provide a seamless setup, simple configuration and enable the user to obtain up-to-date information about their ongoing node operations and the broader NuCypher network. We implemented a Worker endpoint that provides various node metrics and a Grafana dashboard to allow users to visualize these metrics and assess the state of their node.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/1-2.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/1-2.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/1-2.png 1000w, https://economy.p2p.org/content/images/2020/09/1-2.png 1240w" sizes="(min-width: 720px) 720px"></figure><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/2-4.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/2-4.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/2-4.png 1000w, https://economy.p2p.org/content/images/2020/09/2-4.png 1240w" sizes="(min-width: 720px) 720px"></figure><p>Metrics include:</p><ul><li>CPU / RAM / Disk / Network utilization</li><li>Realtime data on node workload</li><li>Account balances</li><li>Staker information</li><li>WorkLock status</li></ul><p>Furthermore, alerts can be provisioned based on these metrics through the dashboard to send timely messages when notable issues arise. Notification mechanisms include Telegram bots, SMS, phone calls, and email notifications. Additional functionality is provided to include images within alert messages and to configure reminders.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/3-4.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/3-4.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/3-4.png 1000w, https://economy.p2p.org/content/images/2020/09/3-4.png 1206w" sizes="(min-width: 720px) 720px"></figure><h2 id="getting-started"><strong>Getting Started</strong></h2><p>To install Prometheus and run your Worker with the metrics endpoint activated, see <a href="https://docs.nucypher.com/en/latest/guides/network_node/ursula_configuration_guide.html#prometheus-endpoint">https://docs.nucypher.com/en/latest/guides/network_node/ursula_configuration_guide.html#prometheus-endpoint</a>.</p><p>To set up our monitoring suite, go to <a href="https://github.com/p2p-org/nucypher-monitoring">https://github.com/p2p-org/nucypher-monitoring</a>, and follow the instructions.</p><blockquote><em><em>To file bug reports or feature requests, please create an issue on our Github. If you are feeling adventurous feel free to submit pull requests.</em></em></blockquote><hr><p><em><em>Do not hesitate to ask questions in our <a href="https://t.me/P2Pstaking">Telegram chat</a> or contact Alex via [email protected] We are always ready to help and open for communication.</em></em></p><hr><h1 id="about-p2p-validator"><strong>About P2P Validator</strong></h1><p><a href="https://p2p.org/?utm_source=blog&utm_medium=economy&utm_campaign=NuCypher-monitoring">P2P Validator</a> is a world-leading staking provider with the best industry security practices and proven expertise. We provide comprehensive due-diligence of digital assets and offer only top-notch staking opportunities. At the time of the latest update, more than 3 billion of USD value is staked with P2P Validator by over 10,000 delegators across 25+ networks.</p><p></p><p><strong><strong>Web:</strong></strong> <a href="https://p2p.org/?utm_source=blog&utm_medium=economy&utm_campaign=nucypher-monitoring">p2p.org</a></p><p><strong><strong>Stake NU with us:</strong></strong> <a href="https://p2p.org/nucypher?utm_source=blog&utm_medium=economy&utm_campaign=nucypher-monitoring">p2p.org/nucypher</a></p><p><strong><strong>Twitter:</strong></strong> <a href="https://twitter.com/p2pvalidator">@p2pvalidator</a></p><p><strong><strong>Telegram:</strong></strong> <a href="https://t.me/P2Pstaking">t.me/P2Pstaking</a></p>
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<p>Transition to NPoS is expected to happen this week. Validator elections and rewards will be activated during this stage. <strong><strong>Is it reasonable to stake at the very beginning or better to wait for exchange listings and activation of token transfers?</strong></strong></p><p>There are more arguments for early staking, than against.</p><h1 id="time-is-rewards"><strong>Time is rewards</strong></h1><p>During NPoS, all nominators will earn staking rewards. <strong><strong>For those who haven't nominated yet, each day will result in a missed opportunity to receive additional interest</strong></strong> on their DOT holdings.</p><p>The period between NPoS and transfer activation is not defined. Some time will be taken to ensure that the network is stable enough before the next steps. After the enablement of decentralized governance, a technical committee and first councils should be elected. It will take at least 14 days. After that, someone will make a runtime upgrade proposal to remove sudo module, voting will take 28 days with an additional 30 days of enactment period before the upgrade.</p><p>If a proposal to enable transfers will be the next one it will also take 28 days to vote for and 30 more days of enactment period. To sum up, <strong><strong>more than 4 months and more than one third of annual DOT rewards can be lost just waiting for the right moment to stake</strong></strong>.</p><h1 id="lower-staked-dot"><strong>Lower staked DOT</strong></h1><p>In the early days of the network the number of staked DOT will start from a lower value and will increase gradually over time as new holders will join staking. Assuming a constant number of validators before network stabilization, the barrier for a node to enter the active set will be lower in the beginning.</p><p>The average annual percentage return for a nominator depends on his share in the validator's total stake. It means that <strong><strong>nominators who stake early obtain a bigger share in the validator pool receiving a higher portion of rewards</strong></strong>. With enabled compounding nominators will be able to retain or even increase their share.</p><p>If Joe has 15,000 DOT and the total stake of a validator is 30,000 DOT, Joe will receive one half of the rewards obtained by this validator node. If the total validator stake is 45,000 DOT Joe will receive only one third. In this example, commission rate is not taken into consideration for illustrative purposes.</p><p>After raising the number of validator slots in the set, the barrier will decrease as well as the average stake among active validators meaning that the nominator's staking returns might increase even more.</p><h1 id="you-shall-not-miss"><strong>You shall not miss</strong></h1><p>Polkadot investors have been waiting more than three years for a return on their initial investment. Some are worried that locking DOT in staking can interfere with a quick reaction when DOT become transferable and appear on exchanges.</p><p>Enablement of transfers will be approved by the community of DOT holders via governance. The proposal will be voted for 28 days and if it is accepted, there will be an enactment period of 30 days before the upgrade. <strong><strong>Tokens of participants who cast a Yay vote will be locked.</strong></strong></p><p>In Polkadot, it is possible to vote without locking DOT in the enactment period, in this case, the weight of a vote will be decreased by 90%. There will be enough time to initiate unbonding for those who wish to fix a portion of DOT holdings as soon as possible. It is much more attractive than refusing three months of additional interest.</p><p>In addition, we will notify nominators about the most important milestones and provide individual assistance in our<a href="https://t.me/P2Pstaking"> Telegram chat</a>.</p><h1 id="staking-in-polkadot-is-simple"><strong>Staking in Polkadot is simple</strong></h1><p>If you lack educational information and can't find guides explaining the required steps, read the detailed guides we have prepared to simplify the process:</p><ol><li><a href="https://economy.p2p.org/create-account-in-polkadot-network/">Create a Polkadot account</a></li><li><a href="https://economy.p2p.org/claim-dot-with-polkadotjs">Claim DOT tokens</a></li><li><a href="https://economy.p2p.org/polkadot-nomination-guide/">Nominate validators</a></li></ol><h1 id="about-p2p-validator"><strong>About P2P Validator</strong></h1><p><a href="https://p2p.org/?utm_source=blog&utm_medium=economy&utm_campaign=reasons_to_stake">P2P Validator</a> is a world-leading non-custodial staking provider with the best industry practices and proven expertise. We provide comprehensive due-diligence of digital assets and offer only top-notch staking opportunities securing more than 3 billion of USD value. At the time of publishing, P2P Validator is trusted by over 10,000 delegators across 25+ networks.</p><hr><p><em><em>Do not hesitate to ask questions in our <a href="https://t.me/P2Pstaking">Telegram chat</a> or contact Alexey via [email protected] We are always ready to help and open for communication.</em></em></p><hr><p><strong><strong>Web:</strong></strong><a href="https://p2p.org/?utm_source=blog&utm_medium=economy&utm_campaign=reasons_to_stake"> https://p2p.org</a></p><p><strong><strong>Stake DOT with us:</strong></strong> <a href="https://p2p.org/polkadot?utm_source=blog&utm_medium=economy&utm_campaign=reasons_to_stake">https://p2p.org/polkadot</a></p><p><strong><strong>Twitter:</strong></strong><a href="https://twitter.com/p2pvalidator"> @p2pvalidator</a></p><p><strong><strong>Telegram:</strong></strong> <a href="https://t.me/P2Pstaking">https://t.me/P2Pstaking</a></p>
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