Provenance Blockchain Staking

HASH is the native utility and staking token of Provenance Blockchain. It serves three primary purposes:

• Transaction fees – All on-chain operations, including financial asset origination, transfers, and smart contract execution, require HASH to pay gas fees.
• Staking & security – HASH holders can delegate their tokens to validators to help secure the network and earn a share of transaction fees as staking rewards.
• Governance – HASH stakers can vote on protocol proposals, including parameter changes, software upgrades, and community spend allocations.

HASH has a fixed total supply of 100 billion tokens with no inflationary block rewards. All staking rewards are derived from real transaction fees generated by financial services activity on the chain.

Provenance Blockchain is a public, open-source, proof-of-stake blockchain built on the Cosmos SDK and designed specifically for financial services. It provides a ledger, registry, and exchange for digital financial assets, enabling institutions to originate, manage, and trade loans, securities, and digital currencies with full on-chain provenance and auditability.

The network is the technology backbone for Figure Technologies, which has processed billions of dollars in home equity lines of credit (HELOCs), personal loans, and asset-backed securitizations directly on-chain. Provenance's Attribute and Name modules enable institutions to attach identity and compliance metadata to accounts, supporting KYC/AML workflows natively.

Provenance uses Tendermint BFT consensus, has 100 active validators, and supports IBC (Inter-Blockchain Communication) for cross-chain interoperability with the broader Cosmos ecosystem.

HASH has a fixed total supply of 100 billion tokens with no inflation. Key tokenomics characteristics include:

• No block rewards – Unlike most proof-of-stake chains, Provenance does not mint new tokens as staking incentives. Annual provisions are set to zero.
• Fee-based rewards – Staking rewards are generated exclusively from transaction fees paid by users of the network, primarily financial institutions using the chain for real-world asset management.
• Circulating supply – Approximately 56.7 billion HASH are in circulation.
• Staking ratio – A significant portion of the circulating supply is staked to secure the network.

The fee-only reward model means that staking yields (~0.16% APR) are directly tied to the volume of real financial transactions processed on the chain, rather than token inflation.

Provenance Blockchain uses Tendermint BFT (Byzantine Fault Tolerant) consensus, the standard consensus engine for Cosmos SDK chains. Key features include:

• Instant finality – Transactions are final once included in a block, with no risk of chain reorganizations.
• Delegated proof-of-stake – Token holders delegate HASH to validators, who participate in block production and transaction validation.
• 100 active validators – The active validator set is capped at 100, selected by total delegated stake.
• 60% minimum commission – The chain enforces a minimum validator commission rate of 60%, which is unusually high compared to other Cosmos chains.

Tendermint BFT can tolerate up to one-third of validators acting maliciously while still maintaining network security and liveness.

To stake HASH on Provenance Blockchain, follow these steps:

1. Get HASH tokens – Acquire HASH through a supported exchange or an IBC transfer from another Cosmos chain.
2. Set up a wallet – Use a compatible wallet such as Keplr or Provenance Wallet.
3. Choose a validator – Browse the active validator set and select a validator based on commission, uptime, and community reputation.
4. Delegate your HASH – Use the staking interface in your wallet to delegate tokens to your chosen validator.
5. Claim rewards – Staking rewards from transaction fees accrue automatically and can be claimed at any time through your wallet.

Note that staked HASH is subject to a 21-day unbonding period during which tokens cannot be transferred or used. You can redelegate to a different validator without unbonding.

When choosing a validator on Provenance Blockchain, consider the following factors:

• Commission rate – All Provenance validators must charge at least 60% commission (chain-enforced minimum). Compare rates above this floor to maximize your returns.
• Uptime and performance – Validators with high uptime ensure you receive consistent rewards. Poor-performing validators risk slashing penalties that affect delegators.
• Voting participation – Active participation in governance proposals indicates a committed and engaged validator operator.
• Self-staked amount – Validators with significant self-stake have strong economic alignment with their delegators.
• Community reputation – Research the validator's track record, transparency, and involvement in the Provenance ecosystem.

You can review validator details on the Provenance Blockchain page on Staking Rewards or through the Provenance Explorer.

Once you have delegated your HASH, staking is largely passive, but there are a few things to keep in mind:

• Claim rewards periodically – Staking rewards accumulate automatically but are not auto-compounded. You should claim and re-delegate rewards periodically to maximize returns.
• Monitor your validator – If your validator experiences extended downtime or gets slashed, your delegated tokens may be penalized. Consider redelegating to a better-performing validator if issues arise.
• Participate in governance – As a staker, you can vote on governance proposals. If you do not vote, your validator's vote is applied on your behalf.
• Redelegate when needed – You can switch validators without unbonding, though there are limits on how frequently you can redelegate from the same validator.

There is no minimum staking amount, and you can add or remove delegation at any time (subject to the 21-day unbonding period for withdrawals).

Staking rewards on Provenance Blockchain come exclusively from transaction fees. This is a distinctive feature compared to most proof-of-stake networks:

• No inflation – The chain does not mint new HASH tokens. Annual provisions are set to zero, meaning there is no inflationary dilution of token holders.
• Fee distribution – Transaction fees paid in HASH are collected by the network and distributed to validators and their delegators proportionally to their stake, after deducting the community tax and validator commission.
• Real economic activity – Because Provenance is used by financial institutions for loan origination, securitization, and digital asset management, the fees reflect genuine economic demand rather than artificial incentives.

The current staking reward rate is approximately 0.16% APR. This rate fluctuates based on transaction volume on the network and the total amount of HASH staked.

Staking HASH on Provenance Blockchain carries the following risks:

• Slashing for double signing – If your validator signs two different blocks at the same height, a portion of all delegated stake (including yours) will be permanently slashed. This is the most severe penalty.
• Slashing for downtime – If your validator misses too many consecutive blocks, a smaller slashing penalty is applied and the validator is temporarily jailed.
• Unbonding period – When you undelegate, your HASH is locked for 21 days. During this time, you cannot transfer or use the tokens, and they are still subject to slashing if the validator misbehaves.
• Opportunity cost – Staked tokens cannot be used for other purposes (trading, DeFi, etc.) while delegated.
• Low yield risk – Because rewards come solely from transaction fees with no inflation, the staking APR (~0.16%) is significantly lower than most PoS networks. Reward rates depend on transaction volume, which can vary.
• Validator risk – If your chosen validator performs poorly or behaves maliciously, your tokens may be penalized. Diversifying across multiple validators can mitigate this risk.