The Orbs team is hard at work putting the finishing touches to the much anticipated launch of the Orbs PoS V3: Multi-chain Staking on Ethereum and Polygon, planned for 29/03/22.
Even though Orbs PoS V3 is an extension of Orbs V2: The Age of Guardians, sharing a very similar mechanism and architecture, there are still some important adjustments and improvements being implemented in V3.
Therefore, we thought it would be a good idea to have a comprehensive Orbs PoS FAQ document to refresh some of the more important aspects of Orbs proof of stake mechanism, as well as highlight the key components of V3. As always, we refer everyone wishing to learn more about the Orbs proof-of-stake, to the PoS webpage in the Orbs website.
Note: this document is intended mainly for the use of Orbs Delegators. For more information about Orbs Guardians, you can find more information in the Orbs webpage or contact the Orbs team on the official Telegram channel.
Well, here we go...
Q1. What is Orbs PoS V3: Multi-chain staking?
Orbs PoS V3: Multi-chain staking, utilizes Orbs hybrid architecture and cross-chain properties to deploy a novel multi-chain PoS staking on Ethereum and Polygon.
Adding Orbs PoS staking on Polygon means that the Orbs network utilizes the Ethereum stack to its fullest potential: The security of Ethereum as the base layer, and the scalability & low fees of Polygon as L2.
In this way, Orbs PoS V3 addresses one of the key feedbacks from the community and is expected to completely mitigate the current high Ethereum gas costs for Orbs delegators interacting with the Orbs staking contracts.
Q2. Is there a difference in staking between Ethereum and Polygon?
There are no differences in the Orbs staking mechanism between Ethereum and Polygon. Orbs Delegators have the ability to choose between staking on Ethereum and staking on Polygon, based on their own personal preferences and considerations.
However, each network has its own characteristics that can appeal for different Delegators:
Ethereum is the native chain for the ORBS ERC20 token. As such, ORBS tokens on Ethereum are compatible with any other Ethereum wallet or protocols or services using ERC20 standard.
Polygon, being a scalable L2 solution on top of Ethereum, offers significantly lower gas fees when interacting with the Orbs staking contracts. This enables certain special features such as staking rewards auto-compounding which is only available for Polygon staking.
*Note that each network requires its own token for transaction fees: ETH for Ethereum and MATIC for Polygon.
Q3. What is the Tetra staking wallet?
In order to participate in the Orbs universe, token holders are required to stake their tokens and select a Guardian to delegate their voting power to.
In order to simplify the interaction with the staking contract, the Orbs team developed the Tetra wallet, with a simple and convenient interface. The Tetra staking wallet allows you to stake your tokens and select a Guardian to delegate to.
For the release of Orbs V3 Tetra has been updated to enable staking on Polygon with a simple and intuitive UI to switch between the Ethereum and Polygon networks.
Q4. Can I use Tetra from my favorite crypto wallet?
Yes! Tetra has now also been made available on desktop and mobile (android and iOS) through a variety of other platforms, enabling the community to stake with even greater ease, including:
Note that all of the above are Ethereum-compatible wallets and therefore enable the use of Tetra for staking on Ethereum.
For Polygon staking - be sure that the wallet supports the Polygon network.
Q5. Does the "ORBS PoS Wallet" support Polygon staking?
No. The ORBS PoS Wallet app is connected to "Samsung blockchain keystore" and ledger, which do not yet support Polygon. Therefore, as of right now the app can only be used for staking on Ethereum.
The Orbs team will make an official announcement if and when the app can be used for Polygon staking as well.
Q6. What are the staking rewards?
Orbs PoS V3 adjusts the staking rewards to a fixed 10% APR of the Total Delegated Staked ORBS tokens.
Guardians are responsible for the staking rewards distribution to their community of delegators by being able to modify their Delegator’s rewards split. 1⁄3 of the rewards are guaranteed to the Guardians (i.e., 3.33% for a full year of staking), while the default values for the distribution application grant the remaining 2⁄3 to Delegators (i.e., up to 6.66% annual reward maximum).
Q7. Is there a locking period when unstaking?
Yes, Orbs PoS has a locking period of 14 days to assure that participants in the PoS ecosystem are committed to the network and maintain its security. Delegators are not expected to unstake their tokens until they decide to leave the PoS ecosystem and transfer them to another use or an exchange. If a delegator does decide to leave, only then there will be a 14 days cooldown during which the tokens are not staked anymore and do not receive rewards. This is similar to other leading PoS systems such as Cosmos or PolkaDot.
Here is a comprehensive paper on the Orbs PoS staking mechanism
Q8. Is there a minimum amount to stake?
No. However, it is recommended that Delegators take into account several variables such as transaction gas fee costs (particularly if choosing to stake on Ethereum), and bridging fees (if wanting to bridge ORBS tokens to stake on Polygon).
Q9. How do I choose an Orbs Guardian?
In order to participate in the Orbs universe, token holders are required to stake their tokens and select a Guardian to delegate their voting power to. Orbs Guardians represent the Orbs community; they maintain the security of the network and uphold its long term vision. Therefore, it is important for Orbs Delegators to choose a trustworthy and active Guardian.
Delegators should note that Guardians are entitled to change the rewards ratio to their Delegators within the allowed range of 66.667% to 0%. Therefore, it is important to note that staking rewards may vary between Guardians, so choose your Guardian carefully!
The full Guardians list for staking on Ethereum and Polygon can be seen in the Tetra staking wallet.
You can learn more on how to choose an Orbs Guardian here.