SPECIAL NOTICE: TERRA HAS FALLEN

Ok I’m in, now what?

So you are excited about Terra, you’ve got your LUNA and/or your UST in hand and are ready for the magic to start. There are so many options it can be overwhelming. We’ll begin a series examining the pros and cons (of which there are not many!) of all the options given to us here on the Terra network. It is important to note that not all APR’s are created equal. APR’s on each respective platform are paid out in that respective platform’s token. You earn ANC (or UST) on Anchor and MIR on Mirror. It would be reasonable to assume this being the case on future Terra platforms as well.

Terra Station

We will start with home base, Terra Station. The starting gate. From your Terra Station you can swap any asset for any other: UST, LUNA and even any asset from the greater network like ANC, MIR, mAssets, etc). You can then take these assets freely to other Terra platforms to earn more UST and/or that platform’s native token.

On Staking

Or, for a simple, low risk, low maintenance approach - you can keep your LUNA in the Terra Station and simply delegate or “stake” (🥩) with one of the Terra Platform validators. These validators are what make the Terra Platform tick. Without validators, there is no network. Validators add transactions to the blockchain and collectively maintain decentralization. Validators have to work to contribute to the network. Staking is how you can help support these validators while also earning for yourself.

Choosing which validator to stake with is an interesting question. There are alot of worthy options and not much criteria to choose from. You, the staker, really can’t go wrong. Our opinion is that all validators deserve support, but it is particularly important to support those who need supporting, for the overall greater good of the network. The more 🥩 a validator has, the more power they carry in the network. If the distribution of 🥩 becomes too top heavy, the decentralization and robustness of the network becomes compromised.

It is also quite reasonable to consider staking to the validators who are themselves actively contributing to the Terra community and growth of the ecosystem. The more Terra grows, the more your LUNA grows. Smart Stake, for example, built this very useful and popular dashboard. #validatordreams

Delegating your LUNA with a Terra validator not only earns you an APR (currently ~11%) with the majority paid out in LUNA (along with other Terra stables), but it also allows you to be eligible for airdrops in existing protocols (Mirror and Anchor). An “airdrop” is a “free token giveaway” in exchange for participating in the Terra network. Delegated LUNA will be the point of reference for network snapshots determining airdrops for future protocols as well! Nebula and Ozone are two on immediate horizon.

One myth worth busting: There is no correlation between validator returns and validator size. The difference in return validator-to-validator is minimal. Plus, historical returns aren’t necessarily a predictor of future returns. It is reasonable to effectively consider each validator as the same in that regard. Pay attention to commission rates as they of course impact returns. However, be wary of 0% commission rates. It is unlikely they will stay 0% for long because some income is needed for sustainability. If 0% is important to you, at least make sure you are diligent about monitoring any rate changes.

RnodeC has chosen to take a transparent approach to our commission structure: 5% fixed rate. That rate can never change due to our 0% max daily change setting. We are who we are

Lastly, it is worth pointing out that staking does carry a small degree of risk. If your validator’s node should go offline for whatever reason for an extended period of time, or they commit a protocol error such as a double sign, the validator + all their stakers are subjected to a “slashing” penalty. It is not a huge penalty and your original investment is not in jeopardy, but it is still important to make sure your validator is going to keep the lights on which can be done with periodic monitoring. If your validator is not up to snuff, you are able to redelegate your 🥩 to any of the other validators immediately.

Why Stake?

While the APR delegating on LUNA is not as attractive on the surface as current options on Anchor or Mirror, it has the hidden benefits of:

1. Being paid out in the most valuable, appreciating, asset on Terra, “The Queen Bee”: LUNA
2. Receiving unaccounted for returns on current and existing projects on the Terra network in the form of airdrops.
3. Supporting and sustaining the engines of the Terra network.

The strongest networks are the most decentralized networks and in our opinion it is important to spread your 🥩. The rewards will vary marginally from validator to validator but the benefits of a vast, robust network will pay far greater dividends down the line.

What’s next for RnodeC?

Terra has just crossed the 100 validator mark! That is a great thing. As we have mentioned, the more functioning, operating validators the better it is for Terra. Terra has a great community of validators who have been very helpful along the way as we are all learning from each other. We have our scripts on our github as do many others. Currently, only the top 100 validators in terms of delegated 🥩 are considered “active” validators thereby earning rewards. We believe it is important to have “little guys” like ourselves supported so we can make the leap that Pete’s Fan Club has, and maybe even become a major community player like Terra Bites, Orbital Command, Stake.Systems (and many others!), along with corporate partners like Orion.Money and SCB 10x… all working together to help make Terra the strongest and most decentralized community.

So we will be working hard to continue to contribute to the community however we can and earn our spot in the top 100. We are learning about this wonderful ecosystem along with all of you and look for any opportunity to further yours (and our) education. So let us know if you have any questions or anything you would like to see done. You can reach us on our [telegram] (https://t.me/rnodec_terra) or [twitter] (https://twitter.com/RnodeC), and also find us in the Terra network discord and telegram communities!