Omnity Convertible Token Staking

Warning: If the validator gets slashed, the delegators of this validator would also get slashed.

In LPoS, rewards are calculated based on the bias of block generation and recorded per era (approximately 24 hours). If the bias of block generation of a validator reaches the expected 70% in an era, there will be the full reward of this era.

Assuming a block is generated every 6 seconds, there will be 14,400 blocks in a day. If there are 100 validators, then one validator is expected to generate 144 blocks. As long as the number of blocks it generates in this era is higher than 144 * 70%, it will get the full reward, otherwise, there will be no reward.

Also, rewards are distributed based on the staking amount of the validator node, which means that the higher the stake amount, the higher the reward the validator node will receive when they’re 100% available when forming the consensus. For the staking reward of the validator node, the validator gets 20% as a commission fee, and then the remaining staking rewards are distributed between the validator and the delegator in proportion to the staking amount.

We assume that: a validator node, the validator stake 10,000 OCT, the delegator A, B, and C respectively stake 3,000 OCT, 5,000 OCT, and 2,000 OCT, and the staking reward of the validator node is 100 XYZ, then the reward distribution is shown in the following table:

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Delegators are one type of participant in the staking of Octopus Network. They are responsible for delegating their OCT to the validators who are the second type of participant. By delegating their OCT to the active set of validators, they are able to share in the block rewards that are paid out by appchain.

While the validators are active participants in the network that engage in the block production and finality mechanisms, delegators take a slightly more passive role. Being a delegator does not require running a node of your own, when looking for validators to delegate, a delegator should pay attention to their reputation for delegating a specific validator – as well as the risk that they bear of being slashed if the validator gets slashed.

The delegating steps are as follows:

1. Log in to Octopus Network Mainnet (opens new window)with your NEAR account.
2. Navigate to the Appchains page, select the appchain and click it.
3. From the validators list, select the validator you want to delegate, and then click the “Delegate” button. You will see a pop-up window, input the amount of OCT you want to delegate, confirm the transaction, and you’re done – you are now delegating.

Note: For delegator, the current minimum amount is 1000 OCT.

Your delegation will become active in the next Era. Eras last 24 hours by default – depending on when you do this, your delegation may become active almost immediately, or you may have to wait almost the entire 24 hours. When your delegation are active, you will start to get rewards allocated to you. In order to claim them (i.e. add them to your account), you must manually claim them.

To earn a yield on your OCT, you can supply liquidity on a DEX, lend them out to custodial providers or via a Defi lending protocol, run a validator or delegate OCT to a validator node on the platform.

To stake your tokens, you should ensure you have your Near Wallet and follow the steps below:

Step 1: Log in to Octopus Network Mainnet with your NEAR account, click the Appchains tab, select the appchain which you would like to do the staking, and then click it to open the appchain page.

Step 2: Select the validator you want to delegate from the Validators list, and then click it to open the Validator Profile page.

Step 3: Click the “+ Delegate” button on the Validator Profile page, input the amount of OCT you want to delegate on the pop-up page, and then click the Deposit button.

Once you have staked your OCT, there are things you need to consider going forward:

• After a reward cycle (~1 day), you will be able to obtain the staking rewards, which need to be claimed manually. In the “My Rewards” area, click “Claim”, and then click the “Claim All” button to claim the reward. You needs to claim the rewards in time, and the rewards that exceed 84 days will not be claimable.
• Delegators can do the following operations on the Validator Profile page: Increase/Decrease delegation, Redelegate, or Unbond delegation.

Native staking rewards on OCT are composed of:

Block Rewards: In LPoS, rewards are calculated based on the bias of block generation and recorded per era (approximately 24 hours). If the bias of block generation of a validator reaches the expected 80% in an era, there will be the full reward of this era.

Assuming a block is generated every 6 seconds, there will be 14,400 blocks in a day. If there are 100 validators, then one validator is expected to generate 144 blocks. As long as the number of blocks it generates in this era is higher than 144 * 80%, it will get the full reward, otherwise, there will be no reward.

Also, rewards are distributed based on the staking amount of the validator node, which means that the higher the stake amount, the higher the reward the validator node will receive when they’re 100% available when forming the consensus. For the staking reward of the validator node, the validator gets 20% as a commission fee, and then the remaining staking rewards are distributed between the validator and the delegator in proportion to the staking amount.

Whilst we want to ensure staking is as safe and transparent as possible, there are still things to consider regarding whether a specific staking option is right for you.

Slashing risk: If a validator misbehaves (e.g. be offline, attacks the network, or runs malware) in the network, the staked OCT of both the validator and its delegators will be slashed proportionally.

Unbonding risk: The unbonding period for unstaking OCT is 21 days. Crypto markets are highly volatile, and investors need to be aware that they cannot sell their tokens immediately once they have staked them. They first need to wait 21 days for the tokens to unbond before they become liquid. Please take note that the cooldown period can be further extended by the governance. Consider keeping funds liquid if you do not intend to hold OCT long-term. 

Protocol security risks: There is an inherent risk that the protocol could contain unknown bugs. This not only applies to staking but your OCT investment in general.

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

OCT is the native token of the Octopus Network. It is a fungible, non-inflationary, NEP 141 standard utility token necessary to carry out the key functions of the platform as detailed below:

Token Utilities

• Governance: A critical function of OCT is to entitle holders to control the governance of the Octopus Network by forming the Octopus DAO. The Octopus DAO Council will have a maximum of 100 members. The Octopus Network DAO Council, Development Task Force, and Governance are all in provision for distributed ownership and operations.
• Staking: Validators and delegators can lock their OCT tokens on the network to secure the network and earning staking rewards.

Octopus Network uses LPoS(Leased PoS) consensus algorithm. In LPoS, token holder leases their token to other and get rewards. In the case of Octopus Network, OCT holders lease their OCT to app chains and get rewarded by their native tokens. LPoS has much scalability and flexibility compared to the Sharding model. 

In LPoS, if the validator does not generate blocks normally within 3 consecutive reward cycles (about 3 days), it will be removed from the validator set. But the existing rewards still can be claimed, and the staked OCTs would be withdrawable after the unbond period.

The supply of OCT is capped at 100M.

Initial Token Distribution

• 6% (6,000,000) – Angel investors
• 5% (5,000,000) – Strategic investor (NEAR Foundation)
• 15% (15,000,000) – Seed investors
• 12.5% (12,500,000) – Series A investors
• 2.5% (2,500,000) – IDO investors
• 30% (30,000,000) – Ecosystem and Community
• 24% (24,000,000) – Core Team
• 5% (5,000,000) – Airdrop to users

Funding Rounds

• $3M was raised in the Seed Round in April 2021
• $5M was raised in the Series A in August 2021