MPC staking rewards are generated through a combination of transaction fees and inflation. When users stake their tokens by delegating them to validators, they help secure the network and participate in block validation. Validators earn block rewards for their work in validating transactions and producing new blocks. These rewards are then distributed to delegators based on the proportion of tokens they have staked.

MPC token holders can contribute as full block producers and validators. These validators are categorized into Baker nodes, ZK nodes, and BYOC cross-chain nodes, each subject to specific staking requirements. Additionally, 10% of the total MPC token supply is allocated to reward operators contributing to network establishment. Delegated staking allows broader participation in consensus and security processes, fostering decentralization.

You are welcome to play around with our MPC Staking Calculator to get a better feel of how these metrics can influence your rewards.

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: To promote alignment with the network's best interests, validators typically face slashing conditions. Should a validator violate network rules, such as double-signing a transaction or prolonged offline status, a portion of their staked tokens may be slashed or confiscated as a penalty. Slashed tokens get burned.

Protocol security risks: There is an inherent risk that the network could contain unknown bugs, this risk applies not only to staking but also to the investment in MPC.

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

• Staking rewards are not auto-compounded. To get the most out of your tokens, you should consider claiming and staking your rewards more frequently, but consider that each transaction will cost you a fee. By using our Partisia Blockchain Staking Calculator, you can calculate the optimal re-stake frequency for your amount of MPC.
• You can check if your staking works by verifying on the Partisia Blockchain Explorer.
• By delegating to a good long-term oriented validator, you can reduce most of your maintenance.

The MPC token is the native cryptocurrency of the Partisia Blockchain. Its key function is:

Staking: It is a core part of Partisia Blockchain and the only functional use of MPC tokens. When staking MPC tokens above specific thresholds you are allowed to operate a node that performs different services on the chain. The token is used for staking and bootstrapping the ecosystem via MPC as a reward.

Token distribution of total MPC supply:

• 35% private sale (sold)
• 25% public sale (3.7% sold)
• 20% ecosystem
• 15% team
• 5% reserve

Partisia Blockchain uses a custom consensus mechanism called FastTrack, which is an optimistic protocol with built-in failure recovery. The protocol relies on a single block producer (proposer) to continuously create new blocks while a committee verifies and signs off on their validity. Consensus is achieved through Proof-of-Justification (PoJ) and Proof-of-Finalization (PoF). A block is justified with a majority of committee signatures (PoJ) and finalized when this justification is confirmed (PoF). After a fixed number of blocks, a new proposer is chosen. If the current proposer fails, the protocol enters a Shutdown state where the committee votes on the latest block, and a new proposer is selected. The system ensures continuity with empty heartbeat blocks if no transactions occur. Baker nodes handle ledger operations with the FastTrack plugin, and cross-shard communication is managed by propagating PoFs across shards.