Akash Alpha » Staking $AKT in Q1 2024

Akash Contributor Validator Updates

Disclaimer:

Akash has 100 validators on their active set, by no means is this list the ONLY validators worthy of your delegation. This list is based on our methodology for picking validators that are Akash Contributors. If this is your first time reading, our methodology as well as a basic staking guide can be found below this list.

Akash Contributor Validators

Quasarch

The Quasarch team has contributed code to the Akash Network numerous time having their name to fame creating one of the first integrations between Akash Network and traditional cloud workflows via their Terraform Provider.

Currently the team is working on a DeCloud Platform that will provide web 3 services on top of Akash Network with a web 2 UX and conveniences such as various payment options. Quasarch sells credits, abstracts Akash Network deployments, and profits by onboarding more Web 2 clients to the network. As their platform grows, so will their influence on Akash's usage stats grow, just take a look at Spheron's recent influence.

Europlots

Trusted by many projects that rely on its compute to operate, Europlots is one of the oldest providers on Akash Network. They are also very active within the community and can be found at events representing the Akash Network as an avid Akash Insider. Europlots reguarly creates tutorial and helpful content to onboard more people into the network as providers.

NoDumpNode

Their commitment extends beyond financial interests to include meaningful contributions to the community through innovative use cases such as https://chat.akash.network/ and https://sdxl.akash.network/, as well as ensuring the security and stability of blockchain networks with their high-quality servers.

DeCloud Nodes Lab

They are mainly involved in the integration of crypto projects into the Akash Network. Working together with projects like Lava, DVPN, Gitopia, Kyve and many others. They are now working on becoming an active Provider on the network.

Cloudmos

If you have deployed on Akash Network you most likely used Cloudmos.io, a tool built by the Cloudmos team that later was acquired by Overclock Labs. The team behind Cloudmos has been around for a long time and are core contributors to the network.

Praetor

The team behind Praetor has been around since the early days of the network. They built the famous Praetor App used to facilitate the onboarding and management of Providers on Akash Network. They are now also working on a special Working Group for content moderation.

Choosing Our Validators

Most people get caught up here. With over 100 Akash Network validators to choose from, it may seem intimidating. Staking your crypto is not without risk. The only answer to these risks is to treat your validator service as a job applicant to take care of your crypto. Follow them on socials, check up on what they are up to, and verify their actions on the chain as validators. There is a level of trust when delegating your stake to a validator service, so it is best to choose validator services like job applicants. Each service is different, some even provide slashing insurance in case they make any errors on their part, so shop around!

For our curated list, we look at the following requirements for validators:

Uptime is near perfect - let's not take a risk on slashing.
The validator is a contributing member of the Akash Network. They are contributors to building the network & they are validating the network - this is very common on Akash as a community of builders.
Validator shows up for governance proposals. When you delegate your coins, you also delegate your votes and your validator should be voting on chain-governance proposals to implement chain improvements on your behalf.
Validator is deployed on the Akash Network.

Are you a validator that fits these description? Contact me on X!

Akash Alpha Staking Guide

What is Staking?

Staking is the action of pooling funds as collateral to a validator service that will pay stakers a % of the rewards it gets for supporting the operations of that specific blockchain network. The larger the stake that a validator has, the more likely it will be chosen to participate in Proof-of-Stake consensus mechanisms that ensure the blockchain's operations and the more rewards it will receive to compensate its stakers. As such, staking only applies to blockchains that are built on Proof-of-Stake mechanisms; Akash Network is one such blockchain.

Why Stake your Cryptocurrencies?

Staking lets you put your crypto to work at securing the operation and security of that specific blockchain to earn a passive income yield from the assets you decide to stake. This is very similar to depositing your money at the bank to earn a yield, but the terms and risks are very different. Akash Network currently pays a 13.6% APY to reward its network stakers.

The Risks of Staking

Slashing

Putting your funds up for collateral is not risk-free. The collateral is insurance the network uses to ensure that the validator service will be a good actor in the process. If the validator service decides to become a bad actor in the network, regardless of the reason, the network will punish that validator service by incurring penalties against their staked collateral; your collateral. The most common reasons for slashing is for validator downtime, so it is important to look at the historical uptime of your validator when choosing where to delegate.

For Akash Network, you can check Mintscan to see the historical stats of every validator: https://www.mintscan.io/akash/validators/

Lock-up Period & Market Risk

While your crypto is staked with a validator, they are no longer available to you as liquid assets. To get them back, you will have to undelegate them from your validator service back into your care. Typically, there are lock-up periods where your crypto will need some time to get back to you; how long is blockchain-dependent. Because your staked assets are not readily available to you, if the price of the assets fall or rises dramatically, for whatever reason, you will not be able to act in response till the lock-up period has passed.

For Akash Network, the unstaking lock-up period is 21 days.

Validator Rug Pull

A validator typically charges a commission to run the validator service on your behalf. This commission will be blockchain-dependent, but will be reasonably low to give stakers the majority of the rewards the validator processes. Validators can edit this commission at will and could turn it up to 100%, keeping all the rewards of the staked funds until the unaware staker moves their funds to another validator. Let's be clear here: Your crypto assets were always safe, it is the rewards that the validator is stealing. You can redelegate your funds elsewhere, with all your funds intact.

Akash Network validators currently charge an average commission of 5%.

Centralization of Power & Validator Collusion

Under a proof-of-stake consensus, large concentrations of power can happen when any validator or group of validators command a large distribution of staked capital. With the power they wield, they can take over the network from the stakeholders and take whatever value is stored on the blockchain for their purposes. The topic of how this is done can go deep into how blockchain works and is out of the scope of this article. However, because of this risk, it is important to delegate to smaller validators which together, keep the larger validators in check. This also decentralizes the power physically so that if a validator service is taken offline for whatever reason, like a natural disaster, the network can persist.

How To Stake

Self Custody - Preferred Method

Self-custody staking means taking ownership of your crypto by having it sent to a digital wallet of your making. For Akash Network, there are a few wallet services you can use such as Keplr, Leap, and Cosmostation wallets. Each will give you a 12/24 word seed phrase you have to safe-keep as backup, and a wallet address for each Cosmos chain as needed. You can stake directly from these wallets once you have sent your crypto to the appropriate accounts.

Staking your crypto using a self-custody wallet yields the most benefits that can come from staking.

Your APY will be higher because the validator commissions will be more competitive with each other.
You will benefit from any airdrops that may target the network's community.
You retain your right to vote on governance proposals of your network.

There are some cons to this format.

Self-custody means if you lose your wallet/seed phrases, there is no help to get it back.
The security of that wallet also falls on you, if you are a victim of a hack or phishing attempt, the responsibility will also fall on to you.

Exchange Custody

Staking with a centralized exchange account yields is very convenient.

Stake straight away from your exchange balance. That's it - nothing to do. To self-custody, you have to create an external wallet, and then send your coins to that wallet, which is a barrier. You may also have to exchange fees to send your coins out as well, another barrier. With the exchange, everything is already on one app, ready to earn.

There are a lot more cons to this format.

Custodian Risk - if the exchange you are staked with goes bankrupt for any reason, your coins are the property of the exchange and not your property. This has been proven in US bankruptcy courts during the Voyager / FTX / Celsius rulings.
You are ineligible for airdrops while your coins are not in your custody. Your exchange is eligible for those airdrops in your stead.
Exchanges, because of their business nature, have large amounts of staked value, leading to the concentration of powers on the network under one entity. Uneven distribution can cause issues especially as these large accounts are historically absent from governance proposals the network may try to pass.
The exchange option, while convenient, usually yields lower APY due to higher commissions that are charged.

Staking $AKT in Q1 2024