Figment

Why Stake with Figment?

EXPERIENCED & TRUSTED

EXPERIENCED & TRUSTED

Original testnet participant and WorkLock supporter.

Serving many of NuCypher’s early investors.

Figment is a venture funded, registered Canadian company, based in Toronto. Canada offers stability, rule of law and clear crypto regulation.

FEATURES & BENEFITS

FEATURES & BENEFITS

Figment Prime and discounts available for large token holders. Contact us for more information.

Active participant in the NuCypher ecosystem. 

SECURITY & SAFETY

SECURITY & SAFETY

The world’s most advanced physical IDC + multi-cloud staking infrastructure.

You maintain custody of your NU at all times.

Third-party custody solutions are available through our institutional partners. Contact us for more information.

COMPLIANCE

COMPLIANCE

Protected via industry-leading Delegation Agreement

Staking NuCypher NU tokens

If you are looking for staking strategies, this is our guide.

In order to stake NU, you must have a dedicated worker node to bond to with your staked NU. You can run a worker node yourself, or you can choose a provider such as Figment.

Contact us if you would like to stake your NU with a NuCypher work node run by Figment.

Fiat-to-Token Exchange

Please see our comprehensive guide on fiat to crypto on-ramps for all staking tokens.

View Guide

Learn More

NuCypher is a cryptographic infrastructure for privacy preserving protocols and applications. Their Key Management System (KMS) plans to address the current limitations that consensus networks have securely storing/sending/manipulating private and encrypted data. 

The NuCypher team is led by CEO and co-founder MacLane Wilkison, and CTO and co-founder Michael Egorov. 

They plan to use a proxy re-encryption scheme, which will allow encrypted data to be sent across their network without having access to anyone’s private key. 

The NuCypher token (NU) functions as a security deposit on the network, and will not be used to pay for services on the network. Fees are paid to workers in Ethereum (ETH), and worker nodes will also be rewarded in NU for being online. 

You can find more information on NuCypher’s website and on the NuCypher whitepaper. Their main communication channel is their Discord group, which can be found here

Frequently Asked Questions

Where can I explore the NuCypher network and create a NuCypher wallet?

Wallet: Metamask – add custom token: 0x4fE83213D56308330EC302a8BD641f1d0113A4Cc

Explorers:

  1. https://stakeit-space.nucypher.community
  2. https://stake-nu.nucypher.community
When are staking rewards enabled? When are NU transfers enabled?

In short: both are currently enabled.

NU rewards and transfers began on Oct 14, 2020. However, the vast majority of NU must vest before unlocking.

What is the name of the asset being staked?

NuCypher’s native token, NU, is used to stake and will be used to participate in DAO governance.

Which type(s) and what rate of rewards can I expect? Can I stake locked/vesting NU tokens?

You can use locked/vesting NU to stake.

What you can earn depends upon 1) how much of the token supply is staked and 2) how long you elect to stake for.

For the first five years, a yearly maximum of 366M in newly-circulating NU tokens will be distributed to stakers, in addition to the ETH-based revenue that the network generates in usage fees. If more of the supply is staked, there will be a smaller proportion of rewards for each staker.

If 70% of the supply is staked, the maximum a staker will earn is ~52.3% in annual rewards (with restaking turned on, “wind down” turned off, and the staking period set to one year). However, if the staker selects a staking period of 180 days, the maximum yearly reward rate will be cut in half: ~26%. Another staker may choose to “wind down” their stake with a 180-day staking period, which will linearly decrease the annual 26% reward rate each day until there is no reward on the day that the stake unlocks.

Do I maintain custody of my NU tokens? Who or what controls my staked NU token?

You can self-custody your NuCypher NU tokens, ideally using a Ledger hardware wallet.

Figment has partnerships with a number of top-in-class custodians: support@figment.io

The NuCypher protocol takes control of your NU tokens while you are staking. If you “wind down” your stake, this process will take whatever number of days that you have committed to (eg. 180 days) before the protocol returns your NU tokens to you. While your NU are staked, you may participate in DAO governance by voting on different proposals.

How long does it take to unstake NU?

Rewards become liquid at the end of your selected lockup period, and this process begins only once you have sent the transaction to “wind down.”

Can my staked NU be slashed (seized or destroyed)?

In short: a negligible amount can be slashed initially (and TBD via DAO governance)

A NuCypher worker node can be slashed, but at a rate so minute that it’s monetarily irrelevant (while still being trackable). Having these data points will enable the NuCypher community to use the NyCypher DAO to set an appropriate slashing policy in future.

You can read more about NuCypher slashing in detail here.

Can I lose potential staking rewards or fees?

Yes: if your worker node fails to perform or to be online, your earnings will not be optimal.

What is the rate of new issuance (aka "annual inflation") for NU? How does the token supply change?

In short: a maximum of 366M NU will be minted and added to the initial 1B circulation by the end of Year 1.

NuCypher will ultimately approach a maximum supply of ~3.885 billion tokens.

When the network launched on October 14, 2020, there were 1B tokens in circulation. A maximum of 366M NU will be distributed to staking nodes each year until Year 5 (Day 1825), at which point the NU reward distribution rate will begin exponentially decaying at a half-life of 2 years, forever approaching the maximum of ~3.885 billion NU.

This reward subsidy is used to reward staking nodes for being available to perform work on the NuCypher network. You can read more about NuCypher’s staking economics in detail here.

How are decisions about the NuCypher network made and executed?

NuCypher will use a “decentralized autonomous organization” (DAO) to govern the policies and processes for the network protocol. The NuCypher team is running a forum to discuss NuCypher’s DAO and there is a Discord channel as well.

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