Staking Lifecycle

Staking VET to Receive an NFT

The staking process begins when a user opts to hard stake VET. To do this, the user selects a node tier and provides the exact amount of VET required for that tier—no more, no less, as over-staking is not allowed. Once confirmed, the specified VET is locked, and the platform mints a staking NFT representing the user's position. At this point, the user is automatically entered into delegation, and the node’s maturity period begins.

Delegation and Locking Mechanism

When a staking NFT is issued, it is immediately locked and delegated to a validator, starting a 7-day delegation cycle. During this cycle, no staking rewards are earned until the maturity period ends. Once matured, rewards accrue at the end of each cycle.

Locked NFTs are non-transferable. To sell or transfer, the NFT must first be unlocked.

Users can choose to enable or disable auto-renew: • Enabled: The NFT remains locked and continues earning staking rewards automatically after each cycle. • Disabled: The NFT unlocks at the end of the current cycle and stops earning staking rewards (only base rewards continue) unless manually re-locked.

In all cases, rewards only begin after the maturity period is complete.

Note: During Stargate Phase 1, this is a simulation of the effective dPoS system to be introduced with Hayabusa.

Maturity Period

All staking operations are subject to a maturity period—a fixed time window during which no rewards are distributed. The length of this period depends on the node tier selected. Once the maturity period expires, the NFT enters the reward-generating phase and begins accumulating VTHO with each delegation cycle.

NFT Unlocking and Cooldown

To unlock a locked NFT with auto-renew enabled, the user must initiate an "exit delegation" transaction. The unlock occurs at the end of the current 7-day cycle. During this cooldown, the NFT remains non-transferable, but rewards continue to accumulate. Without auto-renew, the NFT unlocks automatically at the end of the cycle. The user can then either restake or sell the NFT. When the NFT is unlocked, it does not generate rewards.

Unstaking VET

To unstake VET, the associated NFT must first be unlocked. Once unlocked, the NFT can be burned to release the staked VET back to the user’s wallet. For X Node NFTs, this process is irreversible. Burning an X Node NFT results in a permanent reduction of the tier’s supply, and the specific NFT cannot be reacquired or reissued.