Staking Guide

Stake SEL tokens to secure Selendra and earn rewards. ~15% APR validators, ~12-13% nominators. Era duration: 24 hours. Minimum: 25,000 SEL (validators), 100 SEL (nominators).

Staking Overview

Basics

Bonding: Locks tokens for staking. Cannot transfer while bonded.

Unbonding: 14-day release period (14 eras). Prevents rapid manipulation.

Rebonding: Stop unbonding during the 14-day period.

Account System

Stash: Holds bonded SEL. Cold storage. High security.

Controller: Manages staking operations. Hot wallet OK. Minimal balance for fees.

Why separate? Controller compromise affects settings only, not funds.

Rewards

Era-based (24 hours). Earned from blocks produced, finality votes, and total stake.

Destination options:

• Stash (compounding): Auto-increases stake
• Stash (not bonded): Manual rebonding required
• Controller: Immediate access
• Custom account: Specified address

Compounding recommended for maximum returns.

Nominator Guide

Delegate stake to validators without infrastructure. Minimum 100 SEL.

Prerequisites

• 100+ SEL in wallet
• Polkadot.js extension (Chrome/Firefox/Brave)
• Access to portal.selendra.org

Setup

1. Install wallet extension from polkadot.js.org/extension

2. Create accounts:

• Stash: Holds SEL
• Controller: Manages operations
• Backup seed phrases securely

3. Transfer funds:

• Send SEL to stash
• Send ~1 SEL to controller for fees

Bond Tokens

Via portal.selendra.org:

1. Navigate to Network → Staking → Accounts
2. Click "Nominator"
3. Select stash/controller accounts
4. Enter amount (100+ SEL)
5. Choose reward destination: "Stash account (increase amount at stake)"
6. Submit from stash

Select Validators

Choose up to 16 validators. Selection criteria:

Commission: Lower = higher nominator share (typically 0-10%)

Total stake: Less stake may offer higher returns

Performance: Check missed blocks, finality participation

Identity: Verified on-chain identity = professionalism

Geography: Diversify locations for network resilience

Via portal:

1. Network → Staking → Targets
2. Review metrics (performance, commission, stake)
3. Select up to 16 validators (mix established + emerging)
4. Click "Nominate" and submit from controller

Monitor

Network → Staking → Accounts shows status:

• Active: Backing validator this era
• Waiting: Not selected (normal for competitive validators)

Network → Staking → Payouts tracks rewards. Manual payout may be required.

Strategy

Nominate mix:

• 3-4 established (high uptime, low commission)
• 3-4 mid-tier (competitive returns)
• 2-3 emerging (community support)

Review quarterly. Update based on performance changes.

Validator Staking

Minimum 25,000 SEL bond. See Run Validator guide for setup.

Self-stake: Demonstrates commitment, attracts nominators.

Commission: 0-10% typical. Higher requires justification (quality, support, tools).

Reward Calculations

Example (Simplified)

Validator A:

• Era points: 100 of 400 network total
• Era reward share: 250 SEL (25%)
• Commission: 5%
• Nominator stake: 50,000 SEL
• Self-stake: 10,000 SEL

Validator receives:

• Commission: 250 × 0.05 = 12.5 SEL
• Self-stake: (250 × 0.95) × (10,000/60,000) = 39.58 SEL
• Total: 52.08 SEL

Nominators receive:

• Total: 250 - 12.5 = 237.5 SEL
• Individual: (237.5) × (personal_stake / 50,000)

APR

Validator: ~15% with consistent performance. Varies by network inflation, total staked %, individual performance, commission.

Nominator: ~12-13% after commission. Best returns from low-commission validators with strong performance.

Compound effect: 12% APR compounded daily = 12.75% effective annual rate.

Risks

Slashing

Validators slashed for:

• Equivocation (double-signing)
• Finality violations
• Extended downtime

Amounts: 0.1-1% (minor), 10-100% (major), increasing for repeated offenses.

Nominators affected. Slash applies to all stake backing validator.

Selendra record: Zero slashing events to date. 4 validators with 100% uptime for 5.5+ months.

Opportunity Cost

14-day unbonding period. Cannot transfer, trade, or use as collateral. Plan liquidity needs.

Validator Selection

Poor performance reduces returns. Offline validators earn zero. Over-staked validators dilute rewards. Review monthly.

Market Risk

Rewards in SEL. Token price volatility affects fiat returns. Long-term believers benefit most.

Advanced Topics

Staking pools: Not yet implemented. Planned for future upgrade.

Liquid staking: Under consideration. Requires additional pallets.

Multisig staking: Improved security for institutional use. Advanced setup.

Ledger support: Hardware wallet compatible via Polkadot.js Apps. Private keys never exposed.

Unstaking

1. Chill (Stop Nominating)

Remove nominations without unbonding:

await api.tx.staking.chill().signAndSend(controller);

Effect: Tokens remain bonded. No rewards earned.

2. Unbond

Via portal:

1. Network → Staking → Accounts
2. Click three dots next to bonded amount
3. Select "Unbond funds"
4. Enter amount
5. Submit from controller

14-day countdown begins. No rewards during unbonding.

3. Withdraw

After 14 days:

1. Network → Staking → Accounts
2. Click "Withdraw unbonded"
3. Submit from controller

Tokens transfer to stash as free balance.

Tax Considerations

May be taxable depending on jurisdiction. Consult tax professional.

Potential treatments:

• Income tax when received
• Capital gains on sale
• Hybrid approach

Track: Date/amount of rewards, SEL price, sale dates/prices. Blockchain data enables accurate records.

Related Documentation

Run Validator | Economic Model | Governance System

Community

Telegram: t.me/selendranetwork | X: @selendranetwork | GitHub: github.com/selendra/selendra