A core part of decentralized governance in the IoTeX Network is staking, where token-holders deposit (“stake”) IOTX to generate voting power, which they can use to participate in network governance. IoTeX utilizes Roll-DPoS consensus, where community-voted Delegates manage consensus on behalf of the entire network. Any token-holder that stakes IOTX can vote for one or more Delegates. By staking/voting, token-holders not only enhance the overall security of the IoTeX Network but also earn up to 10% annualized interest on their staked IOTX.
To participate in the voting process, IoTeX token-holders stake IOTX tokens and receive one vote for every IOTX staked (1 IOTX = 1 vote). Those that show long-term commitment by setting a predefined stake duration will be rewarded with “bonus votes” that increase the staking rewards received. In addition to stake duration, there are several parameters a voter will choose when creating a new vote:
Delegate: there are 60+ Delegates that contribute differently to IoTeX and pay different amounts of rewards to voters. You can switch your vote to another Delegate at any time.
Amount: the # of IOTX you wish to stake/vote. You can add IOTX to an existing bucket after your initial vote (must have the stake lock ON).
Stake Duration: the amount of time you wish to stake your tokens (between 0-1050 days). The longer you stake, the more bonus votes/rewards you get.
Stake Lock: by turning the stake lock ON, you will receive even more bonus votes/rewards (i.e., 14 days w/ stake lock ON gets the same # of bonus votes as 28 days + stake lock OFF) but your stake duration will be “paused” until you turn off stake lock. After you turn the stake lock OFF, you will lose your bonus votes/rewards, and your stake duration will resume counting down to zero.
IMPORTANT: you will NOT be able to un-stake your tokens until your stake duration expires. The un-staking process lasts 3 days, after which you may withdraw your tokens to your wallet.