Kusama is a pre-production blockchain platform that serves as a canary network for Polkadot. Kusama uses the same Nominated Proof of Stake (NPoS) consensus mechanism as Polkadot, but it is more experimental and can be used to test new features and upgrades before they are deployed on the Polkadot mainnet.
Kusama staking is similar to Polkadot staking, but there are a few key differences. First, the minimum staking amount on Kusama is lower than on Polkadot (0.001667 KSM vs. 1 DOT). Second, the slashing penalties on Kusama are more severe. Third, Kusama’s staking rewards are more volatile than Polkadot’s staking rewards.
How to stake KSM
To stake KSM, you will need to create a Kusama wallet and transfer your KSM tokens to the wallet. Once you have done this, you can choose to stake your KSM tokens directly to a validator or to a pool of validators.
To stake your KSM tokens directly to a validator, you will need to select a validator that you trust. You can find a list of validators on the Kusama website. Once you have selected a validator, you can stake your KSM tokens to them using the Polkadot-JS UI or another Kusama wallet.
To stake your KSM tokens to a pool of validators, you will need to choose a staking pool. There are many different staking pools available, so you should do your research before choosing one. Once you have chosen a staking pool, you can stake your KSM tokens to the pool using the pool’s website or wallet.
Rewards and risks
Validators and nominators earn rewards in the form of KSM tokens for their participation in the network. Rewards are distributed based on the amount of KSM tokens that are staked and the amount of time that they are staked for.
There are some risks associated with staking KSM. One risk is slashing. Slashing occurs when a validator is caught behaving maliciously. If a validator is slashed, all of the nominators who have staked to that validator will lose a portion of their staked KSM tokens.
Another risk associated with staking KSM is price volatility. The price of KSM tokens can fluctuate, so stakers may lose money if the price of KSM tokens falls.
Conclusion
Kusama staking is a relatively low-risk way to earn passive income and support the Kusama network. However, it is important to understand the risks involved before staking any KSM tokens.
Here are some tips for staking KSM safely:
- Choose a validator or staking pool that you trust.
- Do your research before staking your KSM tokens.
- Diversify your risk by staking to multiple validators or pools.
- Monitor the price of KSM tokens and be prepared to sell your tokens if the price falls.
Additional notes:
- Kusama has a shorter unbonding period than Polkadot (7 days vs. 28 days). This means that you can unstake your KSM tokens and withdraw them from your staking account more quickly on Kusama than on Polkadot.
- Kusama also has a feature called Fast Unstaking. Fast Unstaking allows you to unstake your KSM tokens immediately if they are not currently being used to stake to a validator.
Overall, Kusama staking is a good option for users who want to support the Kusama network and earn passive income. However, it is important to understand the risks involved before staking any KSM tokens.