$NVL Staking — All you need to know
It’s been less than a week since $NVL staking went live, as of this writing, over 10.5M $NVL has already been staked!
In this article, let’s talk about staking, specifically how you can stake, the staking rules, and staking rewards & how they are distributed.
1. What is Staking?
Staking involves committing or “locking up” your coins or tokens as a way of showing your commitment to a project. It is often used to distribute rewards to those committed to a project. There are two main categories of staking: custodial & non-custodial, which can be further categorized as locked (illiquid) or unlocked (liquid) staking.
♦ Custodial staking requires you to send your assets to a custodian, who has access to the staked asset.
♦ Non-custodial staking means only you (the staker) have full custody of the assets.
Locked staking often requires and incentivizes stakers to lock the staked asset for a long period, while liquid staking has no lock-up and allows you to withdraw your stake at any time.
NVL Staking is non-custodial and liquid.
2. How Do I Stake My $NVL?
Visit app.nuvoladigital.io & connect your wallet.
We support almost all major wallets on Cardano such as Vespr, Eternl, Nami, Lace etc. (You can also stake using your HW wallets via Nami & Eternl.)
♦ Click on “CREATE A NEW STAKE” & you will be directed to the stake creation page.
♦ Click on the $NVL token & enter the number of $NVL tokens you would like to stake (click “max” to select all available tokens).
♦ Once you select the tokens, click on the cart icon on the bottom right of the screen, check the box “Support Nuvola by delegating to our pool!” if you would like to stake your wallet to the NVL stake pool (optional) & click on “STAKE NOW” to sign the transaction.
Congratulations! Your $NVL is now staked!
3. Staking Rules
We at Nuvola believe that you should always have access to your funds at all times, so we opted for non-custodial and liquid staking (no lockups).
Once you stake, your $NVL will be stored in a smart contract (script) with your stake key, i.e. you will still be able to see your tokens in all wallet viewers & portfolio trackers such as pool.pm, CardanoScan, TapTools, etc. & your wallet is the only custodian of the staked $NVL.
♦ Staking is 100% liquid with no lock periods.
♦ You start earning rewards from day 1, rewards accrue daily at 00.00 UTC.
♦ To be eligible to retain/claim your rewards, you will need to stay staked for a min. of 14 days (unstaking before 14 days will make you ineligible, your rewards will be added back to the rewards pool for stakers).
♦ All $IAG rewards earned since mid April will be retroactively applied for eligible stakers if staked before the 19th of June, 2024.
4. Staking Rewards & Rewards Distribution
Our rewards distribution model is as shown below:
50% of the rewards & revenues from all our node operations are reserved for $NVL holders, $NVL need to be staked to earn the rewards.
Staking your $NVL gives you exposure to multiple revenue streams:
♦ $IAG — Rewards from Iagon storage & compute nodes
♦ $FACT — Rewards from Orcfax validation nodes
♦ $COPI — Rewards from Cornucopias file nodes
♦ $MNT — Rewards from Minutes Network’s switch & validation nodes
The treasury will be allocated to marketing, development, and market expansion to ensure Nuvola’s growth and sustainability.
Click here to read more about our rewards model.
Rewards allocated to any token that is NOT staked will be re-distributed in a 50/50 manner between the treasury and staked holders as shown below.
For the first 60 days, unstaked rewards will be 100% distributed to all the staked NVL
5. FAQ
— Are my tokens locked for 14 days?
No, your $NVL is not locked, however, to be eligible to claim rewards, you should have your stake active for a minimum of 14 days.
— Can I stake from my HW wallet?
Yes, you can stake from supported HW wallets via Eternl, Nami etc.
— Will the rewards be airdropped?
No, the rewards need to be claimed via the staking portal once they are available to be claimed.
— When will my rewards be available?
The rewards will be made available as soon as we receive the rewards & revenues from our partner projects, i.e. $IAG rewards are unlocked after 1 year, so it will be made available after 1 year.
We will communicate the unlock period for each partner project as operations are deployed & the rewards start to accrue.
— Can I keep my tokens accumulating forever?
Although this is technically possible, we recommend you to claim your rewards on an annual or semi-annual basis.
Conclusion
Staking $NVL offers a great opportunity to support the Nuvola ecosystem while earning rewards. With our non-custodial, liquid staking model, you maintain control of your assets and benefit from our network’s growth.
The treasury is strategically deployed to acquire more DePIN market share by partnering with entities across all chains and helping them grow their networks. Rewards from each new partnership will be redistributed to $NVL holders, continuously increasing the overall value of the rewards.
