The rewards for FUND stakers are being derived from transaction fees spent within the network. Unification provides a service for businesses to deploy Beacon or WKRchains. Each Deployment costs 10,000 FUND and each chain submits hashes to the Unification Blockchain every 30m – 1h. Each Submission costs 1 FUND. So the more chains are submitting to Unification, the more rewards are being derived for stakers.

The derived rewards are being distributed between all staking participants. If less users participate in staking, your rewards will go up proportionally.

At Staking Rewards we are tracking the actual Transaction Fees of the last 30d and the current Staking Participation in real-time to come up with the provided reward rate.

In the Unification Reward Calculator, you can play with the Fees and Participation % to check rewards under different network conditions.

Staking FUND carries the risk of token slashing of both independent validator and externally delegated balances in the event of malicious activity or downtime. These penalties ensure full accountability of validators to secure the oracle network and maintain high-quality control standards.

Currently, there are 2 main conditions where tokens are slashed:

• Double Signing (5%): This occurs when a validator signs two blocks at the same height on the same chain. There will be a severe 5% penalty imposed on the validator and underlying delegated FUND tokens.
• Downtime (.01%): This occurs if validators have not been available in the last 30000 blocks. If slashed, validators are ‘jailed’ and unable to participate in signing any further blocks until a transaction is sent to Unification to prove they are online and operational. We will slowly increase this penalty as our validator pool becomes more stable over time.

For this reason, we strongly encourage all delegators to perform due diligence before choosing a staking provider/validator.