1. What is Cosmos Staking?

Cosmos (ATOM) staking involves locking up your tokens to help secure the network and validate transactions. In return, stakers earn rewards paid in additional ATOM tokens.

2. How Does Staking Rewards Calculation Work?

The calculator uses the staking rewards formula:

Where:

• \( staked\_atoms \) — Amount of ATOM tokens staked
• \( apr \) — Annual Percentage Rate (as decimal)
• \( days \) — Staking period in days

Explanation: The formula calculates the proportional rewards based on the staked amount, annual rate, and staking duration.

3. Importance of Staking Rewards Calculation

Details: Calculating potential staking rewards helps investors make informed decisions about their crypto investments and understand the compounding potential of their staked assets.

4. Using the Calculator

Tips: Enter the amount of ATOM you plan to stake, the current APR (as a percentage), and the number of days you intend to stake. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is staking ATOM safe?
A: Staking involves some risks including slashing penalties for validator misbehavior and unbonding periods when funds are locked.

Q2: How often are staking rewards paid?
A: Rewards are typically distributed continuously and can be claimed at any time, though practices may vary by validator.

Q3: What's the difference between APR and APY?
A: APR doesn't account for compounding, while APY does. This calculator shows simple APR-based rewards.

Q4: Are staking rewards taxable?
A: In most jurisdictions, staking rewards are considered taxable income. Consult a tax professional for guidance.

Q5: What's the unbonding period for ATOM?
A: Cosmos Hub currently has a 21-day unbonding period during which you earn no rewards.