Staking

SAFE holders can stake or delegate SAFE to participate in Safenet and receive SAFE-denominated rewards. Validators stake SAFE and operate infrastructure to participate directly in Safenet. SAFE holders who do not operate a Validator can delegate SAFE to one and receive rewards associated with that Validator’s participation. Staking aligns incentives around the Validator layer: Validator performance affects both the Validator’s rewards and the rewards of its Delegators.

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How staking supports Safenet

Validators collectively produce threshold attestations for secure Safenet results. Staking connects SAFE to this Validator layer and creates an economic relationship between Validators and the SAFE holders who delegate to them. There are two types of stake:

• Validator self-stake: SAFE staked by a Validator toward its own Validator position.
• Delegated stake: SAFE delegated by other SAFE holders to a Validator.

Delegation supports the selected Validator but does not give the Delegator control over Validator operations. See Validators for the Validator role.

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Delegating SAFE

SAFE holders can choose a Validator and delegate SAFE to it without operating Validator infrastructure themselves. Delegators do not participate directly in Safenet attestations. Instead, their staking position is associated with the selected Validator. Validator selection matters because Validator participation and performance affect the rewards received by both the Validator and its Delegators. See How to stake for the staking and delegation process.

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Rewards

Validators and Delegators can receive SAFE-denominated rewards for participating in Safenet. Validator rewards depend on participation in the network. Delegator rewards are associated with the Validator they delegate to and are subject to the applicable reward and commission rules. If a Validator does not meet the applicable participation requirements, this can also affect rewards for its Delegators. Rewards are not guaranteed and can vary based on Validator performance and the applicable reward parameters. See Rewards for the reward model.

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Lock-up and withdrawals

Staked or delegated SAFE is subject to withdrawal constraints and cannot necessarily be withdrawn immediately. The applicable lock-up and withdrawal process determines when SAFE can be removed from a staking position. See Lock-up and withdrawals for details.

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Risks

Staking and delegation involve risks, including Validator performance, reward variability, withdrawal constraints, and smart-contract or protocol risk. SAFE holders should understand these risks before staking or delegating. See Risks for details.