# Staking

## Staking Mechanism

ONUS Chain relies on a system of 7 validators (may be expanded later) with Proof of Staked Authority (PoSA) consensus that can support short block time and lower fees. Ideally, ONUS Chain shall build such staking and reward logic into the blockchain and automatically distribute rewards as the blocking occurs. Hence, it allows users to delegate their tokens to a specific validator and share validator's rewards based on the total staked amount.

## Staking Economics

1. Only ONUS can be staked, as it is Onus Chain’s native coin.
2. The ONUS Chain validator set is determined by its staking and delegating logic, via a staking module built.
3. Delegators rewards are calculated based on their total staked amount to the validator.

## Roles

Staking roles are:
• Validator — a node that produces new blocks and validates existing blocks.
• Delegator — a user who participates in a validator election.

## Reward distribution

### Validator's Rewards

Validator can get rewards by executing transactions. Each transaction has execution cost as fee and 15/16 of this fee goes to the validator, but 1/16 of the rewards goes to the system treasury where these funds are used for the system’s needs, such as bridging cost coverage. The majority of block rewards go to the validator's owner while a share of them is distributed between delegators.

### Delegator's Rewards

Delegator's rewards are calculated based on their total staked amount to the validator.
The universal formula for delegator's reward distribution is
$= rewardsPerBlock * myDelegatedAmount / totalDelegated$
The reward is calculated per validator. The total reward for a delegator, if staked to different validators, is the sum or per-validator rewards.

### Staking Information

1. 1.
Minimum staking amount: 1 ONUS
2. 2.
Commission rate: 5% (delegator fee for validator).
3. 3.
Unstaking time: 6 Epoch (18 days)
4. 4.
APR = 365 * ( 100 * Total Reward / Total Delegate / 3)
APR calculation in epoch N-1, which means total rewards and total delegation are snapshot at the end of the last epoch.