Staking Rewards

Validators and delegators that help secure the network through staking will receive 25% of newly released OSMO. Validators operate nodes that participate in the consensus of the chain. At genesis, there will be space for 100 validators, chosen by highest amount of “slashable bond.” (Validators stake OSMO as collateral. Their OSMO stake can be slashed if they are caught engaging in malicious behavior.)

OSMO holders can delegate their OSMO to validators, who add these tokens to their slashable bond. Delegators provide security to the network by selecting high-quality validators. Rewards are distributed to delegators (in proportion to their amount of staked OSMO), minus the commission fee charged by their validator of choice.

Osmosis allows validators to choose their own commission rate but requires a minimum rate of 5%. This threshold can be adjusted by governance after genesis.