FAQs - Kava (KAVA)

Frequently asked questions about Kava
Written by StakeSeeker
Updated 11 months ago

What is Kava (KAVA), and what is it used for?

KAVA is the integral token that powers Kava’s Proof-of-Stake blockchain protocol. It is primarily used to reward users for minting USDX, the native stablecoin of the Kava network, and to grant voting rights on systematic changes in Kava’s protocol.

What are Kava's staking rewards?

Staking rewards in the form of native blockchain tokens (KAVA) are distributed to validators for locking up their cryptocurrencies to a blockchain network to support validator node’s participation in the consensus mechanism and securing the network for a period of time. Refer to the data above for the latest Kava staking reward figures.

What are the costs of staking Kava?

StakeSeeker charges a small percentage-based fee (stated above) allocated towards the administerial 24/7 maintenance and monitoring of our staking infrastructure required to operate our validators effectively and securely. The rewards distributed to our community will be a net of the validator fee charged.

Is staking Kava secure?

When KAVA is staked, it’s actually being delegated to a validator. In our case, StakeSeeker facilitates the role of the validator. Similar to staking tokens on any other protocol, staking KAVA comes with certain risks. If any downtime is experienced, or if a validator misses another part of the necessary requirements, then a percentage of the staked KAVA can be lost as a penalty (known as “slashing”). StakeSeeker monitors its nodes 24/7 and has an excellent track record that minimizes these risks.

What are the current use cases for Kava?

Kava protocol users collateralize their crypto assets in exchange for USDX. While some of the projects that use Kava are focused on borrowing and lending, the protocol is also home to apps that employ open-source cloud storage, spot and margin trading, and scaling solutions that allow other protocols to grow.

How is Kava different than Cosmos or Ethereum?

Kava is powered by the co-chain architecture of Cosmos and Ethereum. The protocol uses Ethereum smart contracts while maintaining the benefits of Cosmos’ interoperability.

How long does it take to unstake Kava?

Unstaking (also called unbonding or undelegating) can be initiated at any time. However, it takes approximately 21 days for your KAVA to unstake from the network and become transferable. During this time, you will not earn rewards. When the process is complete, you regain the ability to transfer or trade your KAVA tokens.

What is the minimum amount of Kava to stake?

You can stake as little as 1 KAVA, but remember to keep some KAVA token unstaked in your wallet to pay for any potential future transaction fees.

What are the risks of staking Kava?

Like many blockchain protocols, the consensus mechanism used by Kava includes a slashing mechanism whereby any validator that misses too many blocks or double signs a block is penalized by the network, slashing the staked amount on that validator. StakeSeeker is run by Nasdaq listed BTCS Inc. which has its own tokens staked on the same validator nodes, so we are highly incentivized to minimize these risks and maximize our staking reward. However, delegators should be cognizant of these risks.

How do I get started staking Kava?

To begin staking Kava, click the “Start Staking” button at the top right, create an account with StakeSeeker and gain access to the platform’s crypto portfolio insights. Then, you can begin staking with our validator nodes by delegating your tokens. Within the platform, there are instructions and tutorials on how to link your crypto exchange accounts and digital wallets and how to navigate the platform’s tools. You can view our supported blockchain networks for staking on our homepage.

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If you still have a specific question about blockchains or staking, please start a conversation with our support team! 

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