Lunie Staking Guide — Terra

Additional Considerations When Picking A Validator Note — Lunie is not a validator any Proof of Stake blockchains — therefore we have no objective benefit to recommend one validator service over another — we simply offer the clearest indicators possible of what a validator’s performance is and the rest of the judgement will fall on the user. As always, we are happy to field any questions you might have about this process and are open to feedback. Slashing Risks — Staking on the Terra protocol comes with some risks of loss of funds. If a validator messes up by double signing, the validator and those who stake with them will be slashed 5%. If a validator experiences significant downtime or does not participate in the oracle process, the slash will be less severe at 0.01%. Rewards Calculation Lunie offers an easy to understand rewards estimate for each eligible validator on the network. This calculation is based on: The total annual validator rewards (voting power * annual provision — which is a variable defined in the protocol) Subtracting the validator’s commission from the annual calculation Assuming a 1 LUNA token staked which will receive a percentage of the available rewards Based on how many tokens are already staked with that validator These rewards figures do not represent the compounding effect of rolling earned rewards back into the existing staked balance over time. This rewards estimate is only a rough idea of what a token holder can expect over the course of a year and is subject to change. Validators can adjust their commission rates, experience downtime or cause a slashing event to occur. Managing Staking Rewards As with other networks built using the Cosmos SDK, Terra rewards, which are a mixture of LUNA and a variety of stablecoins, must be claimed with a “claim transaction.” Your balance will be updated after the claim to show exactly how much of each asset you now have in your available balance. Un-staking Assuming you have LUNA staked with a validator and you want to un-stake them, the LUNA will be subject to a protocol-enforced 21-day lockup period. This 21-day lockup period is built into the network to prevent long-range attacks. During this period, your account will not earn any rewards associated with staking those funds and they will not be transferable until the period is complete. For example, if you have 100 LUNA staked and you un-stake 25 LUNA, the 75 LUNA still staked will continue to earn their rewards, while the 25 LUNA will earn no rewards unless they are re-staked after the lock-up period. However, token holders can immediately change who they stake a portion or all of their stake to by re-staking directly to another validator, rather than un-staking, waiting the 21 day period, and then staking elsewhere. Governance Rights Similar to the governance structure on Cosmos, Terra protocol token holders with staked LUNA are able to submit and vote on proposals through governance functionality provided in the Lunie interface. Currently there are 5 types of proposals within the Terra protocol: