# OpNode Staking

<figure><img src="https://2004759715-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBoGO6AcREHlo6GM9MmI9%2Fuploads%2FSla9avd4Qrz0UDfeid8J%2Fimage.png?alt=media&#x26;token=52a8b4fa-a97f-418c-a90d-4c23e07918e5" alt=""><figcaption></figcaption></figure>

Staking is the backbone of economic alignment in the **OpNode** ecosystem. By staking $OPEN, participants not only earn passive rewards but also contribute to the overall performance, reliability, and decentralization of the platform. It's designed to incentivize good behavior, penalize bad actors, and make the entire decentralized GPU cloud infrastructure run smoothly and securely.

This document dives into how staking works, why it matters, and the mechanics powering it under the hood.

***

#### 🌐 Why Stake $OPEN?

Staking is an essential aspect of our platform, offering numerous advantages for both clients and service providers. Here's how it can significantly benefit you:

**1. Secure Jobs as a Client**

By engaging in staking, you effectively lock in your budget, showcasing your financial commitment to potential task providers. This not only secures jobs but also provides you with peace of mind, knowing your investment is protected and ensuring a smoother transaction and collaboration process.

**2. Boost Trust Score for Providers**

A higher stake is directly proportional to a more elevated trust score. Service providers with a higher stake gain better visibility on the platform, unlocking more job opportunities. This enhanced trust score serves as a testament to their reliability and dedication, making them more attractive to potential clients.

**3. Participate in Governance**

Staking empowers you with voting rights, giving you a voice in critical protocol decisions. This participatory role means you can influence the future direction of the platform, ensuring that the services and features align with the community's needs and priorities, ultimately making the ecosystem more robust and user-centered.

**4. Access Priority Features**

Stakeholders enjoy priority access to a range of exclusive features. Whether it's early access to high-demand tasks or the utilization of premium GPU resources, staking ensures that you are always at the forefront, able to leverage cutting-edge tools and opportunities ahead of others.

**5. Earn Rewards**

By contributing to network security and liquidity through staking, you are not only safeguarding the platform but also earning rewards. These incentives are designed to recognize and compensate your efforts in maintaining a stable and efficient ecosystem, fostering a mutually beneficial relationship between you and the network.

Embrace staking to unlock these benefits, enhancing your experience and ensuring greater success on our platform.

***

#### 🧩 Stakeholder Types

#### 🎛 GPU Providers

* Stake OPEN to signal reliability.
* Higher stake = increased task allocation probability.
* Subject to **slashing** if tasks are not completed or results are invalid.

#### 🧠 Clients (Task Creators)

* Stake OPEN as part of task submission.
* Ensures payment commitment and reduces spam/malicious task creation.

#### 🗳 Delegators

* Not running jobs? No problem. OPEN holders can delegate tokens to trusted providers and earn a cut of the rewards.

***

#### 📊 Staking Tiers & Lock Periods

| **Tier** | **Min Stake (OPEN)** | **Lock Duration** | **Reward Boost** | **Perks**                         |
| -------- | -------------------- | ----------------- | ---------------- | --------------------------------- |
| Bronze   | 1,000                | 7 days            | 1.0x             | Governance Access                 |
| Silver   | 5,000                | 30 days           | 1.2x             | +Task Visibility                  |
| Gold     | 25,000               | 90 days           | 1.5x             | +Early Bidding Rights             |
| Diamond  | 100,000              | 180 days          | 2.0x             | +Fee Sharing +Voting Weight Bonus |

* **Early Unstake Penalty**: 10% of principal if unstaked before lock ends.
* **Auto-Roll Option**: Restake on maturity with compounding rewards.

***

#### ⚙️ How It Works – Step-by-Step

#### For Providers:

1. Stake OPEN via the **OpNode Staking DApp**.
2. Set your provider availability and rates.
3. Receive task bids prioritized by your stake level and reputation.
4. Complete tasks → validated → receive payment + staking rewards.

#### For Clients:

1. Submit task via UI or API.
2. Lock stake (equal to budget + buffer %).
3. Funds + stake held in escrow during task execution.
4. Once task is verified, payment released and stake refunded.

#### For Delegators:

1. Choose a Provider node.
2. Stake OPEN to them and earn a % of their task fees + block rewards.
3. Unstake or redelegate anytime after lock period ends.

***

#### 💰 Rewards Mechanism

Stakers earn from multiple streams:

1. **Task Completion Rewards** – providers get a cut of job fees in $OPEN.
2. **Protocol Inflation** – new OPEN minted and distributed based on staking tier.
3. **Slashing Redistribution** – slashed funds from bad actors go into staking pools.
4. **Fee Rebates** – discounted network usage for stakers on subscription plans.

> 📈 Reward APR is dynamic, based on total staked supply, protocol usage, and network growth.

***

#### ⚠️ Slashing Policy

Slashing is enforced to penalize malicious or negligent behavior:

| **Violation**               | **Penalty**        |
| --------------------------- | ------------------ |
| Task Abandonment            | 5% stake slashed   |
| Repeated Inaccurate Outputs | 10% stake slashed  |
| Fraud/Misconduct            | Up to 100% slashed |

* **Three-strike system**: After 3 penalties, provider is blacklisted unless DAO votes to reinstate.
* **Dispute resolution** via DAO or arbitration oracle network.

***

#### 🗳 Governance Integration

Staked $OPEN gives voting power:

* 1 OPEN = 1 Vote (boosted by stake tier)
* Vote on proposals for:
  * Protocol upgrades
  * Fee structure changes
  * Partnership approvals
  * Treasury deployment

Votes are gasless and executed via Snapshot + on-chain quorum logic.

***

#### 🔮 Future Plans

* **Liquid Staking Derivatives (LSDs)** – Stake OPEN and receive stOPEN , tradable and usable in DeFi.
* **Cross-Chain Staking Support** – Stake on L2s or other networks via bridges.
* **Dynamic Reputation Model** – Real-time scoring based on ML analytics.
* **Staking-as-a-Service APIs** – Plug-and-play SDKs for DApps and third-party tools.

***

#### 🧪 Smart Contract Modules (Overview)

* `OPENStaking.sol`: Handles staking, lockup, and reward distribution.
* `StakingEscrow.sol`: Escrows task deposits and stakes during execution.
* `Slasher.sol`: Implements slashing conditions and automatic penalties.
* `DelegationPool.sol`: Enables delegation with share-tracking and rebasing logic.

All contracts are:

* Audited (coming Q2 2025)
* Open-sourced for transparency
* Upgradeable via UUPS proxy pattern
