Hata Staking | General Questions

Staking is a popular way for crypto holders to earn rewards simply by holding their assets, while also contributing to the security and decentralization of the blockchain network.

Hata makes staking seamless and secure by enabling users to stake directly on the platform, ensuring their assets are placed with a trusted and reliable provider.

If you would like to learn how to stake and unstake on Hata, please visit our article ‘How to Stake and Unstake on Hata’.

General Questions

What is Staking?

Crypto staking allows you to earn rewards on your cryptocurrency holdings. It is typically available on assets that use the Proof-of-Stake (PoS) consensus mechanism.

When you stake crypto, you commit your assets towards securing the asset's PoS network. Your assets help verify transactions, facilitate decentralized governance, and improve the network's resilience. In return, the network generates rewards through newly created block rewards or transaction fees, which are passed on to you, minus a service fee.

Independent cryptocurrency staking can be a daunting process for many users. Besides meeting hardware requirements that may vary between assets, users may also need to install and run their own nodes. This is where Hata’s Staking Services come in – offering a user-friendly interface and industry-leading node uptime. Hata is the destination of choice for customers looking to help secure crypto blockchains and protocols.

How does staking work on Hata?

With Hata Staking, the process has been simplified to just a few clicks, making it easy and convenient for you to stake your tokens.

Currently, Hata offers staking services for Solana (SOL), with plans to introduce more cryptocurrencies for staking.

To get started, simply choose a cryptocurrency offered for staking on Hata and submit a request to stake your funds. Once your request is processed and the applicable activation period elapses (i.e., once your assets are staked to the validator nodes), you will begin to earn rewards based on factors like the amount staked, network conditions, the protocol underlying each cryptocurrency, and potentially other factors. After you have completed the locking period and the applicable deactivation period has passed, you will receive your initial staked funds back, along with any rewards earned during the staking period.

For further instructions, please refer to our how-to guide.

Who can use Hata Staking?

Hata Staking is available to all Hata customers who have signed up and completed their KYC verification. 

Can I unstake my crypto anytime I want?

You can request to unstake assets at any time, as long as you have completed the activation period. However, you can only gain access to your assets once the deactivation period is complete. The deactivation period refers to the time it takes before your assets are available to transfer or sell following an unstaking request. This period can vary depending on the network. During the deactivation period, you will not earn any staking rewards, and any rewards accrued during the cycle will also be forfeited.

To unstake, visit your Staking Summary. Click on the asset you would like to unstake, select Unstake, then confirm. For more detailed instructions, check out our how-to guide.

Which cryptocurrencies can I stake on Hata?

To view all currently supported cryptocurrencies for staking on Hata, please navigate to your Earn Wallet, where you’ll find all available cryptocurrencies for staking.

Am I allowed to cancel my staking request?

Once you initiate a staking request, you will not be able to cancel it, as your stake is in the process of being staked on the blockchain (activation period). However, once the activation period is complete, you can request to unstake your assets at any time.

Can I change my auto-subscribe settings?

Yes. Once your funds are actively staked, you can easily enable or disable the auto-subscribe feature at any time.

Can I use my funds while they are staked?

While your funds are staked on the blockchain network, they will be unavailable for use. However, staking rewards, which are periodically distributed to you after each successful cycle, will be sent directly to your crypto wallet, where they are available for immediate use.

Staking Process

What are activation and deactivation periods?

• Activation Period: This is the time that elapses after you request to stake your tokens before they are officially staked and eligible to earn rewards. No rewards are earned during the activation period.
  
  

• Deactivation Period: This is the time that elapses after you request to unstake your tokens before they can be accessed or sold. The deactivation period varies between a few days to a few weeks, depending on the blockchain network. Staked assets do not earn rewards during this period.

Please note that users must wait for both the processing time of both the activation or deactivation period when requesting to stake or unstake.

What do the dates in the Timeline mean?

• Staking Start Date: The day you request to create a new stake plan on Hata.
  
  

• Activation Date: The day your stake plan completes its activation period and starts earning rewards on the blockchain network.
  
  

• Maturity Date: The day your stake plan completes its locked period on Hata. At this point, your stake will either be unstaked or go through the next staking cycle, depending on whether you are auto-subscribed.
  
  

• Next Staking Date: This only appears if you have enabled auto-subscribe. It marks the starting date of your next staking cycle. After completing a full cycle, your funds will not need to go through the activation period again.
  
  

• Distribution Date: The estimated date when your staking rewards will be sent to your crypto wallet. Note that it may take several days for your rewards to be delivered, as they must first go through a deactivation period.
  
  

Where do my staked funds go when I stake on Hata?

When you stake on Hata, we initiate the staking process by sending your funds to the validator nodes of our trusted third-party staking service providers. Rest assured, Hata never uses your staked assets for any purpose other than staking, including lending or collateral provision.

Rewards

How much can I earn by staking on Hata?

The rewards you earn depend on factors such as the amount of cryptocurrency you stake, network conditions, the underlying protocol for each cryptocurrency, and more. Once you have completed your locked staking plan and the deactivation period has passed, you will receive your initial staked funds along with the rewards earned during the staking period.

Please note that staking rewards are not guaranteed and are subject to change at any time. For more details, please refer to Hata’s Staking Terms of Use. Additionally, while you can earn rewards on your initial staked assets, the fiat value of your crypto may fluctuate.

Published reward rates are estimates based on historical data and may change to reflect actual on-chain staking rewards, which can vary based on factors like staked asset supply, network demand, and protocol updates.

To learn more about staking rewards, please visit our article on ‘How are my staking rewards determined?’

Where do these staking rewards come from?

Staking rewards are generated through the consensus mechanisms of blockchain networks, which incentivize participants for validating transactions and securing the network. These rewards come from two key sources within the blockchain ecosystem:

1. Transaction Fees: A portion of the transaction fees paid by network users is allocated to participants who stake their assets. By staking, participants help maintain the network's security and performance, contributing to the validation of transactions and the overall decentralization of the network. These fees are pooled and distributed as rewards to stakers.

2. Block Rewards: In many Proof-of-Stake (PoS) and similar consensus networks, new coins or tokens are created (minted) and awarded to stakers as part of the blockchain's block generation process. These block rewards are distributed to those who contribute their assets to secure the network, providing an additional source of staking rewards.

At Hata, all staking rewards are generated by the blockchain protocols underlying each token eligible for staking and are passed on to you after deducting a service fee.

When and where do I receive my staking rewards?

Your staking rewards are distributed based on the blockchain network’s process. Once your rewards are available, Hata will automatically allocate it to your crypto wallet.

Please note that the exact timing and method of reward distribution may vary by network, but once your rewards are available, they will be credited to your account.

Are there fees for staking on Hata?

Hata deducts up to a 35% service fee from earned staking rewards, which is already reflected in the estimated reward rates. Please note that this service fee may change. For more information, please see our Fees page.