What are the NGM staking risks?

What are the NGM staking risks?

Before staking NGM tokens it is important to understand:

  • There is a 21 day unbonding period (“lockup”) for staked tokens.

  • There is a risk of losing 5% of tokens staked with a validator that double signs. A validator can only do this once.

  • There is a risk of losing 0.01% of tokens staked with a validator that goes offline. This can happen multiple times.

It is generally advisable to:

  • Reduce risk by diversifying between at least a handful of validators.

  • Explore and consider the operational track record of validators before staking with them.

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