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Version: Testnet

Stake

Staking involves bonding DYM tokens to a validator to earn staking rewards. According to Dymension's monetary policy, new DYM tokens are issued and distributed to stakers.

To participate, users must stake with a validator ranked in the Top 125 by stake. Only these Top 125 validators are involved in consensus and eligible to receive token issuances. A validator's rank is determined by the total amount of DYM bonded to them.

Staker benefits​

  • New Token Issuances: Receive your pro-rata portion of newly issued tokens as rewards.
  • Gas Fee Earnings: Earn your pro-rata portion of the gas fees paid by users on Dymension L1.
  • Governance Voting Power: Participate in onchain decision-making.
  • Endorsements: Direct DYM incentives to chosen liquidity pools or RollApp teams.
staking

Validator fees​

Users select a specific validator to stake their tokens. Each validator charges a percentage fee as a service charge for operating nodes.

In Dymension L1, the minimum fee a validator can charge is set at 5% of the rewards. This minimum fee is implemented to discourage centralization of stake towards validators offering a 0% fee.