Osmosis (OSMO)

The Osmosis AAM Protocol token, OSMO, is used for staking, and participation in on-chain governance.

It takes 14 days to unstake your OSMO.

Staking rewards on Osmosis are automatically distributed every epoch (~1 day). Figment is never in control of your rewards. Staking income is not automatically compounded, and a new delegation is required before rewards begin earning staking rewards.

Your potential rewards depend upon validator performance. There is no slashing for downtime, but validators are jailed after 50 hours of downtime, which will make the validator and its delegators ineligible to earn staking rewards until un-jailed. Validators may submit an un-jailing transaction 60 seconds after becoming jailed, which will enable them to earn staking rewards once approved. If a validator double-signs a transaction block, they and their delegators will be subject to a 5% slash and the validator itself will be permanently jailed (or “tombstoned”). To date, Figment has never been slashed.

In the first year, 821917 OSMO in rewards are distributed daily (per epoch), with 25% of it going to stakers. This means that the new issuance rate will be 292.8%. Since stakers get 25% of that, staking returns are at minimum 73.2% annually. Rewards will then be cut by 1/3 each year.

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

Decisions about the protocol, which include things like parameter changes, incentives payouts, and community fund allocations, are decided by OSMO holders through the governance process. Discussions occur on the forum known as Commonwealth, and voting takes place through the Governance tab in Keplr. Validators will vote on behalf of their delegators as a default unless the individual delegator overrides that vote with their own. In this way, validators act as a default proxy vote, but delegators retain the right to individually vote on proposals (except for tokens engaged in Superfluid Staking, in which case only validators can use superfluid OSMO to vote on governance proposals).