Rewards are received in KRW, SDR, EUR, and USD stablecoin tokens. These can be converted into LUNA by swapping coins.

As of Dec 26, the Terra network no longer pays LUNA rewards.

However, staking LUNA entitles delegators to a pro-rata portion of the 0.5% transaction fees earned by the Terra network. This fee volume is rapidly increasing.

Network fees are paid in stablecoin, and are pro-rata based upon LUNA stake weight.

Rewards are distributed automatically each block by the protocol. Delegators need to withdraw their rewards from the protocol in order to transfer earned stablecoins or to convert them into LUNA.

Validators are never in control of the rewards.

Rewards are liquid.

Yes, slashing can occur under the following conditions:

• Double Signing: If someone reports on chain A that a validator signed two blocks at the same height on chain A and chain B, and if chain A and chain B share a common ancestor, then this validator will get slashed on chain A.

• Unavailability: If a validator’s signature has not been included in the last X blocks, the validator will get slashed by a marginal amount proportional to X. If X is above a certain limit Y, then the validator will be removed from the active set of validators, and its delegators will not earn rewards until the validator sends a transaction to rejoin the active set.

• Non-voting: If a validator did not vote on a proposal, its stake will receive a minor slash.

There is no bonding period.

There is a 21 day unbonding period to transfer your LUNA tokens after staking. During the unbonding period, your LUNA are illiquid and may still be subject to slashing.

You maintain custody of your LUNA at all times.

Your LUNA stay in your wallet and you may change your delegation at any time.

All LUNA token transfers, including rewards, are processed within the Terra protocol.  Figment never has custody of your tokens or rewards.

There is a 21 day unbonding period to transfer your tokens after staking.  During the unbonding period your LUNA tokens are illiquid and may still be subject to slashing.

Figment provides a 100% missed reward guarantee for any missed rewards due to liveness (downtime).

Your tokens are subject to a potential 5% slashing a validator “double-signs”.   See how Figment approaches infrastructure and operations to protect against double signing here and here.

Figment has a perfect operating record and has never missed rewards for downtime or been slashed.