Testnet update: Tokenomics Integration
After last week’s successful release of the Polkadex Testnet, it’s time to kick things up a notch.
Last week brought the release of the Polkadex Testnet, the Test Token faucet, and the ability for anybody to run a Testnet validator node and/or stake their Test Tokens. The response was overwhelmingly positive. There are now almost 250 validator nodes and over 400 nominators in the Polkadex Testnet!
As Polkadex get closer and closer to this month’s Mainnet launch, the Testnet will undergo several wipes (yes, your Test Token balances will go to zero… that’s why they are Test Tokens!) and updates. The first update simulates the tokenomics of the Polkadex Mainnet and recreates the PDEX vesting schedule at a scale (a quarter of a year of PDEX vesting on Mainnet becomes 24 hours on Testnet). This update aims to mirror the Polkadex Mainnet tokenomics as closely as possible and will give everyone a better idea of the exact yield figures (annual percentage yield or APY) that stakers of PDEX will get on the Mainnet.
Testnet wipe & Test Token reclaim
For this reason, the Testnet will be wiped and all participants will have to reclaim tokens from the Twitter token faucet bot. Please note that the amount of Test Tokens you receive will be much lower than what you have received so far. This is to adjust the Testnet token economics to those of the Mainnet (around 20 million max supply of PDEX) and make them as similar as possible. In order to claim Test Tokens for this new round of testing, tweet the following (pasting your account/wallet address where it says [ACCOUNT]):
👋 Hey @polkadex I want to try staking Test Tokens on the Polkadex Testnet. Please send me some #PolkadexTestTokens to [ACCOUNT]! 📲
Helpful refresher and guide
Lastly, if you are unfamiliar with the concept of staking or need a refresher, read on for a quick recap on what staking means, why it is important for Polkadex, and what staking Test Tokens on the Polkadex Testnet entails. You will also find a guide to set up your Polkadex Testnet account, claim Test Tokens, and start staking and nominating validators.
What is staking?
In a nominated Proof of Stake (nPoS) blockchain like Polkadex, staking allows token holders to actively participate in transaction validation. It can be thought of as similar (less resource-intensive) to mining on a Proof of Work blockchain like Bitcoin. Staking involves locking cryptocurrencies to earn rewards.
nPoS allows you to “vote” for validators and share in the rewards (and slashing) without running a validator node yourself. By staking your PDEX and ‘bonding’ it to a validator, you become a nominator in the network. Validators, who earn a share of transaction fees as they validate transactions, can choose to keep a percentage of the rewards and “reimburse” themselves for the cost of running a validator node. This is the validator’s commission. Other than that, all rewards are shared based on the stake behind each validator. This includes the stake of the validator itself, plus any stake bonded by nominators.
What are the advantages of staking?
Staking is integral to the security and efficiency of all PoS blockchains. By staking your PDEX, you make the Polkadex network more resistant to attacks and you contribute to its ability to process transactions. Ideally, 50% of PDEX will be staked on the Polkadex network at all times.
Network participants and token holders also benefit from staking directly as they earn rewards on their PDEX. The rewards will be around 10% depending on the number of tokens staked.
Are there staking rewards on Testnet?
No. Not only does the Testnet not provide financial rewards, there are also no PDEX tokens in the Testnet. Testnet participants can claim Polkadex Test Tokens which serve as a simulation for what PDEX will be like on the Mainnet. The Testnet serves as a model for participants to learn how everything works and interact with the blockchain in a risk-free manner. The main gain from participating in the staking of Testnet tokens in the Testnet is to gain the knowledge to do so when the Mainnet comes along.
How can you stake Test Tokens on the Polkadex Testnet?
Getting started
- Before you start staking you will need a Polkadot.js browser extension.
- Then you will need to create an account on the Polkadex Testnet. You can do that here.
- Once you have an account, you can use your account address to claim Test Tokens. In order to claim Test Tokens, tweet the following:
👋 Hey @polkadex I want to try staking Test Tokens on the Polkadex Testnet. Please send me some #PolkadexTestTokens to [ACCOUNT]! 📲
Make sure you have pasted in your Polkadex Testnet account/wallet address where it says [ACCOUNT].
Staking
- 1) Select ‘Staking’ from the ‘Network’ drop-down menu and then click on ‘Account actions’
- 2) Click the ‘+ Nominator’ button
- 3) Select your controller account and your stash account. While these are recommended to be different accounts for fund security, they can also be the same account. Next, select the amount you want to ‘bond’
- 4) Then, select which validator you want to nominate with your funds. While profitability is important, it is also important to nominate a validator you trust.
- 5) Search for your desired validator and select them. For the purpose of this demo, we have selected ClusterCuss, the first-ever Testnet validator from the Polkadex community.
- 6) Once you’ve found your desired validator click the ‘Bond & Nominate’ button.
- 7) Click ‘Sign and Submit’ and approve the transaction using your Polkadot.js wallet
How to run a validator node
Although last week’s article included a helpful guide on running validator nodes on the Polkadex Testnet, some of the details may have changed due to the Testnet update. Please follow the updated Run a Validator doc on Github to set up your validator for this next phase of the Testnet.
Questions or feedback?
If you have any questions about any of the steps above or general questions about the Testnet or Polkadex as a whole, we invite you to join the Polkadex Discord server, where other participants are already connecting with the Polkadex developers!
Follow Polkadex on our official channels to connect with the community and keep up with everything happening at Polkadex, especially during the next few busy weeks!
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