Casper (CSPR)

Caspers’ native token, CSPR, is used to pay computation fees and reward validators.

Initially, the CSPR is staked to earn new issuance (“inflationary”) subsidies. This means that the CSPR supply will increase and stakers will capture the newly issued CSPR. Generally, you will earn around 8% annually on your staked CSPR, but that can change.

Stakers will also capture fees from network transactions, so as Casper transaction volume increases, CSPR stakers will earn more than new issuance subsidies. The CSPR token also gives stakers the right to vote on policy decisions for how the Casper will operate and distribute treasury funds.

It takes 7 eras, approximately 14 hours to unstake. During this time neither validators nor delegators receive rewards.

Staking rewards are enabled at mainnet launch. Transfers are enabled, but holders cannot trade tokens until they become unlocked.

Staking rewards on Casper is automatically distributed once per era (~ 2 hours). Rewards will be automatically staked and are locked for the first 90 days, along with all other tokens.

Your potential rewards depend upon validator performance. Validators earn rewards by participating in consensus by finalizing blocks. If your validator is offline or cannot vote on many blocks, you will not earn as many rewards.

Yes, a portion of your staked CSPR can be destroyed. If a validator is slashed, all tokens that have been delegated to that validator will also be slashed. Casper is slashed for double-signing, also known as equivocations. Double signing happens if a validator is running two nodes and they both sign the block at the same time.

However, you can lose potential rewards for downtime, and you can learn more about how we secure our infrastructure here.

The actual annual inflation rate is 8%. There will be 10 billion CSPR at the time of genesis.

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

Casper has proposed a governance model that includes Constituency Groups making governance decisions on behalf of the group that they represent. In some protocols simply holding the token is necessary for voting for on-chain governance. But Casper wants to allow core developers, open-source contributors and dApp developers, and commercial licensees to participate in governance, alongside validators and delegators.