Harmony ONE Staking Myths
I previously wrote an FAQ which was well received, however there are a few more statements I’m coming across from my time running Fortune.ONE validator that need some clarification.
1) Validators unusually high % is legit
True & False — My Validator, Fortune.ONE was one of these high % so I can explain from experience. There is a very rare occurrence were a validator can be elected with less than the required stake. This results in a high rewards % for the epoch in which they are elected. The ONLY people who can benefit from this high % are those already staked before the epoch began. Once the high % has been recorded and is visible it is very likely too late to benefit. Once the first epoch is complete the validator either has gained the required stake to be elected again and thus can only generate around 9–10% OR they unfortunately didn’t receive enough and will very likely be unelected. Those lucky enough to receive enough stake to be elected again will have the high % recorded to their ‘Average %’ which is why the % you see is always higher but will be dropping every epoch until it levels out to a true reflection based on what is being generated (typically 9–10%).
2) I’m handing over my ONES ownership to the validator
False — They are entered into a smart contract between you and the validator. Your ONE never leave your wallet.
3) Validator has control over my ONE
False — The validator has zero control or ownership over the ONE staked on their servers.
4) I should undelegate and redelegate frequently to get better rewards
False — This doesn’t benefit you unless you wish to switch validators. When you then delegate again you need to wait until the following epoch for rewards to begin. Thus you will have 1 epoch without any rewards. You are better off sticking with a solid validator and leaving it to accrue.
5) Soft Staking on kucoin/binance is better than staking on the mainnet
False — While there are the benefits for staking on the exchanges, primarily being able to unstake with no time limits, it is important to note that if you wish for true ownership of your ONE then you need to transfer these from an exchange to a private wallet. Exchanges are subject to hacks, bankruptcy, theft and lately restricting access to your ONE withdrawals. Remember if you don’t own your private key then you don’t truly own your ONE.
6) Undelegating at the end of the epoch for best rewards
False – You can undelegate at any point in an epoch and you will still get rewards for the remainder. Undelegated at any point other than the end is beneficial to the validator as they won’t have to make last minute changes to adjust for the change in total stake.
7) I need to undelegate first to top up my stake
False – To top up your stake you follow the same process as your initial stake. Undelagating first will only make you go without rewards for an epoch.
8) Validators fees are 11% – 5% = 6%
False – the validator fee comes out of the interest generated. For example if 11% generates 100 ONE in a given timeframe then the validator would have received 5 ONE and the delegator gets 95 ONE ( based on a 5% fee ). 12% would become 11.4%
Stake with Fortune.ONE: Link