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What is the difference between Staking and Nominating?
What is the difference between Staking and Nominating?
Updated today

Users can support The Root Network (TRN) by Staking their ROOT tokens. Users can choose to simply stake, or to Nominate their stake to one or more Validators.

Nominating your stake earns a greater share of block rewards and an increased Bootstrap rewards rate. However, it also exposes you to Slashing risk.

Validators that misbehave can be penalized by having some or all of their staked tokens revoked - including tokens from Nominators actively supporting them in that Era - depending on the severity of the event(s); referred to as Slashing.

To learn more about what type of behavior may result in Slashing, see our article here

Although the risk is small under normal circumstances, it is important to periodically review your nominations to ensure that all your chosen Validators are performing well and continue to operate in the best interest of the network.

Staking does not expose you to any slashing risk, but also yields a smaller share of block rewards and the lowest Bootstrap reward rate.

It is the responsibility of each individual participant to determine which course of action best suits their personal circumstances. If you can actively participate, then Nominating your stake may be preferable. However, if you are looking for more of a "set-and-forget" solution, it may be preferable to Stake your tokens without Nominating.

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