Band Protocol (BAND)

Band Protocol’s native token, BAND, is the name of the asset being staked. Notably, the Ethereum-based ERC-20 version of BAND token must be swapped to the native token before tokens can be natively staked to BandChain.

Explorer: https://cosmoscan.io/

BAND may be staked to earn new issuance (“inflationary”) subsidies. It means that the BAND supply will increase after each new block is minted and stakers will capture the majority of newly issued BAND. Generally, you will earn around 11% annually on your staked BAND, but that can change depending on how much total BAND is staked relative to the ideal ratio of 66% of total tokens.

Stakers will also capture fees from network transactions, and as Band Protocol transaction volume increases, BAND stakers will earn more than just new issuance subsidies. BAND token also gives stakers the right to vote on policy decisions on how the Band Protocol will operate and the distribution of community funds.

Similar to most Cosmos SDK chains, from the moment you initiate the unbonding process, it takes 21 days to unstake. During this time you will not earn rewards. When the process is complete, you can transfer/trade your BAND tokens. Note that while you can unbond any chunk of your total staked balance, you can only have a maximum of 7 pending unbonding requests at a time.

However, if you want to simply re-delegate BAND to another validator, you are free to do so and may begin to earn rewards without being restricted by the 21-day unbonding period. This switch to a new validator is instantaneous, and is designed to allow delegators to switch validators for any reason at all.

Transfers are currently enabled. Staking rewards were fully enabled when the mainnet launched.

Rewards are distributed after each new block is produced. Your rewards will accumulate as a claimable balance, but rewards must be claimed before being available for token transfers or further staking. The dynamically increasing balance of your staking rewards is independent of your primary BAND balance, and is not factored into your staked balance until after you claim it and delegate it to a validator.

Rewards may be lost in the event of a slashing event, which may result in further penalties to reward-earning capabilities. These events include double-signing, downtime, and unresponsiveness.

Figment has partnerships with a number of top-in-class custodians. Please contact support@figment.io for more inquiries.

BAND uses token voting for on-chain governance. Governance proposals are set forth in CosmoScan, where they can be voted on by BAND holders.