XGR Staking explained

Staking is the system that turns transaction fees into validator income and delegator rewards. This page explains the mechanics in plain language: who gets paid, what an epoch is, how to use the staking page, and when slashing happens.

Open staking XGR tokenomics

1. Validator or delegator?

XGR staking has two roles. Validators run the infrastructure. Delegators do not run a node. They choose a validator and add XGR to that validator pool.

ValidatorRuns the node, participates in consensus and receives the direct block-validator fee share.

DelegatorDelegates XGR to a validator pool and shares that pool's reward result and slashing risk.

Validator poolCombines validator self-stake and delegated stake. Reward-pool payouts and slashing are based on epoch snapshots.

2. What is an epoch?

An epoch is a reward accounting period. XGRChain does not distribute staking rewards after every single transaction. Fees are collected during an epoch and processed when the epoch is finalized.

Epoch sizeOne reward epoch has 1,000 blocks.

Approximate timeWith about 2 seconds per block, one epoch lasts about 33 minutes and 20 seconds.

Why it mattersRewards, uptime, effective stake and slashing use finalized epoch snapshots, not only the live state shown immediately after a transaction.

Simple version: after you delegate, the UI can show a live state quickly. Reward-effective status only becomes clear after the relevant epoch has been finalized.

3. How to use the staking page

Step 1: Open the staking page, check the selected network/RPC and connect your wallet.

Step 2: Look at the validator list. Important fields are actual validating status, finalized uptime average, commission, total stake and live pool space.

Step 3: Choose a validator deliberately. A low commission is useless if the validator is unreliable or the pool has no capacity.

Step 4: Delegate or add XGR and confirm the transaction in your wallet.

Step 5: After delegation, check your wallet staking area. Live active and effective in the last finalized epoch are different states.

Step 6: To leave later, use unstake / exit first. Withdraw is only possible after the protocol conditions are met.

4. Where transaction fees go

After the fixed burn part, the remaining transaction fee is split by the staking system.

Donation: 15% of the remaining transaction fee goes to donation.

Validator economics: 85% remains for validator/reward economics.

Direct validator share: Half of the validator part goes directly to the validator who produced the block.

Reward pool: The other half goes into the epoch reward pool and is distributed when the epoch is finalized.

Simple fee example

Assume a transaction produces 100 XGR in distributable fees after burn.

15 XGR go to donation.
85 XGR remain for validator economics.
42.5 XGR go directly to the block validator.
42.5 XGR go into the epoch reward pool.

5. How the reward pool is distributed

The reward pool is distributed after epoch finalization. First, each eligible validator pool receives a share based on its effective epoch weight. A validator with zero effective weight receives no reward-pool share for that epoch.

Inside a validator pool, rewards are split between validator self-stake and delegators. The validator's self-stake receives its own stake-weighted share. The delegated share is then reduced by validator commission. The remaining delegated reward is distributed to delegators by their effective delegated stake.

Pool reward example

Assume one validator pool receives 1,000 XGR from the epoch reward pool.

The pool has validator self-stake and delegated stake.
The validator self-stake receives its proportional self-stake share.
From the delegated share, the validator can take commission.
The remaining delegated reward is split among delegators according to effective delegated stake.

If the validator has 10% commission, that commission is taken from the delegated reward part, not from the entire pool reward.

6. Live active is not reward-effective

The staking page separates live state from finalized epoch state.

Live activeYour wallet, validator or delegation is active right now.

Effective in finalized epochYour stake was counted in the finalized snapshot used for rewards and slashing.

A wallet can be live active now but not yet effective in the last finalized epoch. That is normal.

7. Uptime, rewards and slashing

Validator uptime is measured per epoch from assigned proposer slots. Uptime controls reward weight and slashing.

90% uptime or more: full effective reward weight.
80% to below 90% uptime: reduced effective reward weight.
Below 80% uptime: zero reward weight for that epoch.
Below 50% uptime: zero reward weight and slashing is applied.
0% uptime: the validator is additionally set inactive.

If a validator has no assigned proposer slots in an epoch, the epoch is not rewarded and not penalized for that validator.

8. What exactly is slashed?

Slashing is not only a penalty for the validator address. It affects the effective stake behind that validator pool.

If a validator falls below 50% uptime in a slashable epoch, the protocol calculates a slash amount of 0.2% of the validator pool's effective stake snapshot. That slash is then allocated proportionally across the effective stake positions in that pool: validator self-stake and active/effective delegator stake.

Simple slashing example

Assume a validator pool has 100,000 XGR effective stake and falls below 50% uptime.

Slash rate: 0.2%
Total slash: 200 XGR
If a delegator represents 10% of the effective pool stake, that delegator bears roughly 10% of the slash.
If the validator self-stake represents 30% of the effective pool stake, the validator bears roughly 30% of the slash.

The slashed amount is removed from stake. It is separate from lost rewards.

When does the validator become inactive?

A validator is set inactive only if it has 0% uptime in the finalized epoch. Falling below 50% causes slashing, but inactive status is tied to zero successful slots.

9. Unstaking and withdrawing

Unstaking starts the exit process. Withdraw is the later step where funds can actually be taken back once the protocol conditions are met.

Unstake / exitStarts leaving the staking position. Your stake is no longer treated like normal active delegation.

WithdrawBecomes available only when the protocol allows the funds to be withdrawn.

If withdraw is not available yet, that does not automatically mean something is broken. Usually the exit conditions or waiting period are not finished yet.

Risk notice

Mainnet staking involves risk. Delegating or operating a validator can lead to reduced rewards, lost rewards or slashing if validator duties are not performed correctly.

XGR Network provides the staking interface as a technical access tool.
XGR Network does not guarantee validator uptime.
XGR Network does not guarantee rewards.
XGR Network does not operate third-party validators.
XGR Network cannot prevent protocol-level penalties such as slashing.

Only stake XGR if you understand the risks and are comfortable with them.