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Can I Add to my Existing Stake?

Yes, you can add to your staked position at any time, subject to minimum amounts.

How are Rewards Calculated?

Rewards are based on the amount you stake and the blockchain protocol's rates. After deducting the operation fees, the remaining rewards are credited to your account.

How are Staking Fees Calculated?

Newton deducts a small percentage of rewards as fees, which include validator and Newton platform fees. For example, staking Ethereum incurs a 15% Newton fee and a 10% validator fee on rewards.

Example:

If you stake 10 ETH and the network generates 0.5 ETH in rewards:

• Validator Fee (10%): 0.05 ETH
• Newton Fee (15%): 0.075 ETH
• Net Reward: 0.375 ETH

Are Staking Rewards Guaranteed?

No, staking rewards are not guaranteed. Staking rewards fluctuate based on network performance, validator efficiency, and blockchain-specific protocols. Additionally, factors such as market volatility and slashing events can impact the rewards earned. It's better to think of them as variable rather than fixed returns.

Can I Lose My Staked Assets?

While rare, losses can occur through validator slashing or technical issues. Moreover, given that we pool rewards (and losses in such an event) and have 100+ nodes, the impact per user should be minimal.

How Does Market Volatility Affect Staked Assets?

Staked assets remain exposed to market price fluctuations throughout the staking period. While staking allows you to earn rewards, it does not provide protection against market losses. The value of your staked cryptocurrency may rise or fall based on market conditions, which could impact the overall return on your investment.

How Often Are Rewards Distributed?

Rewards are approved 3x per week, which means most users receive rewards 3x per week.  However, this timeline may vary depending on the specific cryptocurrency network and its reward cycle.

Can I Access My Staked Assets Anytime?

No, you cannot access your staked assets anytime. During the warm-up period and while your assets are staked, they cannot be traded or transferred. Additionally, if you choose to unstake, your assets will go through a cool-down period before they are accessible again.

It’s also important to note that the value of your staked coins may fluctuate due to market volatility, and the value when unstaked could be significantly lower than when you initially staked them.

What is a Warm-up Period?

The warm-up period is the initial processing time before your staked assets begin earning rewards. Duration varies by cryptocurrency.

What is a Cool-down Period, and What Happens During Unstaking?

When you decide to unstake your assets on Newton, they enter a cool-down period, as mandated by the blockchain protocol of the staked asset. This is a waiting period during which your assets are no longer actively staked but remain temporarily inaccessible until the process is complete.

The cool-down period is crucial in maintaining the security and stability of Proof-of-Stake networks. It prevents potential malicious actions, such as validators or participants suddenly withdrawing their stakes in response to market shifts or to exploit the protocol.

What is Slashing?

Slashing is a penalty imposed by blockchain networks to maintain their security and integrity. It occurs when validators—responsible for verifying transactions and maintaining the network—engage in malicious behavior, such as validating fraudulent transactions or going offline during critical periods.

Are Staking Rewards Taxable in Canada?

If your staking activities are regular, commercial in nature, and conducted with the intention of earning a profit, the rewards are likely considered business income. In this case, the full amount of the staking rewards is taxable. If staking is more of an investment activity without significant commercial characteristics, the rewards may be treated as capital gains. Only 50% of capital gains are taxable in Canada. We recommend consulting a tax professional to determine your specific obligation.