Staking your CER tokens transfers ownership of your tokens to the contract. Only your address can end the stake and transfer your tokens from the contract back to your wallet. It is important to not lose the private keys to the address you stake your CER with! Once your tokens are staked you are now participating in the staker pool and will get daily interest payments. You can choose to stake between a minimum of 7 days or a maximum of 5 years. Longer stakes earn bonus interest. If you end your stake earlier than you agreed to when you started the stake, you will incur penalties and lose some of your CER. Penalties are paid to the staker pool.
During the first year Cereneum pays out 5% of the total supply as interest to the staker pool. This means a fixed amount of CER is distributed to the stakers, even if there are only a few stakers. The fewer stakers the more CER each staker gets. After the first year stakers can vote on the pooled interest they would like (5%-50%) and the majority vote will determine the interest rewards for everyone.
During the first year of the contract, unclaimed coins get redistributed to the staker pool on a scheduled algorithm. This makes staking during the first year important since there will be a lot of additional rewards given to the staker pool. Longer stakes pay out more. If you stake for a minimum of 90 days you will get an additional ~5% bonus on your interest. This scales linearly up to 100% bonus for a 5 year stake.
For the first year the staker pool gets a bonus amplifier based on how many wallets have claimed. If all possible wallets claimed CER the staker pool would get a 100% (2x) bonus.
For the first year the staker pool gets a bonus amplifier based on how much CER has been claimed from the 150 million claimable CER at the snapshot. If all 150 million CER were claimed the staker pool would get a 100% (2x) bonus.
If you end your stake earlier than the agreed upon time, you will be penalized and the penalty will be given to the staker pool. The penalty is the greater of:
○ 5% of principal per year of intended stake (0.01369% per day)
○ 50% of interest earned deducted + 5% per year of intended stake
After your stake has matured you have a 1 week grace period to remove your stake from the staker pool. After that you will start being penalized by 1% of your earned interest each day. Penalties are given to the staker pool. The reason for this penalty is because while your stake is still in the pool it is lowering everyone else's interest payouts. However, if a nice person wants to pay the gas to remove you from the staker pool once your stake has matured, they can do that by calling EndStakeForAFriend and save you from penalties.