It is essential for users to stake their PoS tokens with dependable and highly performant validators, which is why we rolled out our Staking Rewards Verified Staking Provider (VSP) Program in June 2022. Through this program, we thoroughly scrutinize potential validators, evaluating factors such as security measures, their on-chain reliability, their provider setup, and value-added services for the whole ecosystem.

There are many metrics to consider when selecting a validator to delegate to:

Commission Rates: The commission rate a validator charges is the % of your reward that the validator keeps for themselves. A high commission rate means your rewards will be lower, whilst a low commission rate could mean that the validator is not profitable and could cause issues for them in the future. Keep in mind that validators can adjust their commission rates up or down over time. 

Number of Users: A high number of delegators could indicate positive sentiment towards a validator. 

Validators Self-Staked Balance: A provider with a high amount of staked tokens likely has more incentive to continue operating their services as they have more to lose than those with low self-staked balances. This metric has some limitations as Validators can choose to delegate to their own validator from another wallet, which is done to increase the security of their funds. 

Current Status: To check if a validator is currently active, go to the Stride Validator Dashboard on Mintscan. The default view on this page is for “Active” validators, but you can also filter to view inactive validators in the top right corner of the page. Keep in mind that only the top 100 validators on Stride, ranked by balance, receive rewards.

Network Share: You typically don’t want to choose a validator with the highest or a low network share. Delegating to the most popular validators increases centralization risks within the network as those validators will have more say in governance and produce a larger share of the blocks. A validator with a low network share might not be profitable, increasing the risk of discontinuing their services. If a validator drops out of the eligible set, they also stop earning rewards. However, if you are willing to put more time in, then delegating to a smaller validator helps support the decentralization of the network. You would just have to make sure to check regularly if the provider is still active and operating. 

Performance: Make sure you pick a validator with the highest possible performance. Further, please check individual validators’ uptime, and our recommendation is only to pick those with a >=99% uptime and a long history of not getting slashed.

MediBloc generates rewards through a system where validators receive MED tokens, the native MediBloc coin, based on their performance and support from voters (mandators). Validators with more votes have higher chances of being selected as block producers, thus earning rewards more frequently. These rewards come from inflation (minting) and gas fees. Validators can set a commission rate, and the voters who support a winning validator receive incentives proportional to their voting share, after deducting the validator's commission. Validator information and commission rates can be checked on the Medibloc Asset Page. The inflation rate adjusts based on the total amount of staked coins; it increases if staked coins decrease and decreases if staked coins increase, thereby regulating the circulating supply of MED coins while maintaining their value.

We strive to make staking as safe and transparent as possible, however, it's important to consider factors that may influence whether a particular staking option is appropriate for you.

Slashing Risk: If a validator misbehaves, their delegated stake will be partially slashed due to either double signing or downtime. Double signing, where a validator signs two blocks at the same height on two chains that share a common ancestor, results in a 5% slash on the reporting chain. Downtime, where a validator misses more than 95% of the last 10,000 blocks, results in a 0.01% slash.

Unbonding Risk: When staking MED tokens, there is a lockup period of 21 days. This means that investors will not be able to sell their tokens immediately, but instead need to wait 21 days after initiating unbonding before they can be traded again. This is something to keep in mind when deciding to stake, as crypto markets are highly volatile. Consider keeping funds liquid if you do not intend to hold MED long-term. 

Dropping out of the Active Set: A validator could drop out of the top eligible validator set, meaning they no longer earn any rewards. Ensure you check back frequently to ensure your validator is active, not jailed, and has not unreasonably raised their commission fees. 

Security Risks: There is an inherent risk that the protocol could contain unknown bugs, this risk applies not only to staking but also to the investment in MED.

Please note that this is not an exhaustive list of all the risks related to staking.

MED is the native cryptocurrency of the MediBloc healthcare data exchange platform. It powers the economic ecosystem within MediBloc, incentivizing participation and enhancing data exchange in healthcare. MED serves as the core of MediBloc’s decentralized health information system, enabling transactions, rewards, and access within the ecosystem. Key characteristics include:

Economic Incentives: MED rewards patients and healthcare providers for their contributions and engagement, fostering a dynamic community.

Utility and Payment: MED acts as a payment method for various healthcare services on the blockchain, expanding its utility in the healthcare sector.

Staking and Rewards: Users can stake MED to contribute to network security and efficiency, participating in block generation on Panacea and earning real-time rewards.

This distribution strategy ensures the long-term sustainability and growth of the MediBloc ecosystem.

Initial token distribution:

• 50% of MED coins are allocated to ICO participants.
• 20% are reserved for the development team.
• 12% are designated for further development.
• 10% is allocated to investors and advisors.
• 8% are set aside for research purposes.

Medibloc blockchain utilizes a DPoS (Delegated Proof of Stake) consensus mechanism combined with the PBFT (Practical Byzantine Fault Tolerance) algorithm. In this system, validators (block producers) are elected by network participants' votes and are responsible for efficiently producing and synchronizing new blocks at high speed. These validators are rewarded with MED mainnet coins based on the number of votes they receive. MED coin holders who are not selected as validators can vote for validators, participate in the block validation process, and receive incentives after each block creation.