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PoS Staking

Conflux utilizes PoS mechanism to counter 51% attacks and thereby introduces finality for its PoW chain. In PoS, validators stake their tokens to participate in the consensus process, also are rewarded for their participation in the consensus process. To learn more knowledge about PoS check the PoS basic docs

Why participating PoS​

Validators are selected to vote on Tree-Graph pivot blocks to protect the network. The more tokens a validator stakes, the higher the chance they will be selected to vote on pivot blocks, and the more rewards they will receive.

The current annual reward rate of the Proof of Stake (PoS) is 10%-14%, and it is influenced by the total staking amount. The lower the staking amount, the higher the yield. The annual return rate calculation method is in here: Annual Return Rate Calculation Method.

Staking Lock-up Period​

CFX staked into PoS has a lock-up period with the following specific rules:

  1. After staking CFX, there is a 13-day lock-up period during which the CFX status is staking.
  2. After 13 days, the CFX status changes to staked.
  3. If a user wants to retrieve their CFX, they must first perform an unstake operation, at which point the CFX status changes to unstaking, lasting for 1 day.
  4. After 1 day of the unstaking period, the CFX status changes to unstaked.
  5. At this point, the user can perform a withdraw operation, and the CFX will be returned to their Conflux account.

For CFX that has not yet completed the lock-up period, an unstake operation can still be performed. However, in this case, the unstaking period will be extended to 14 days minus the number of days already staked.

Which is because that the minimum total lock-up period(staking + unstaking) for CFX in PoS is 14 days.

Example​

Case 1​

  1. User stake in day 1
  2. Unstake in day 13
  3. He can withdaw in the end of day 14.

Case 2​

  1. User stake in day 1
  2. Unstake in day 2
  3. He can withdaw in the end of day 14.

Case 3​

  1. User stake in day 1
  2. Unstake in day 20
  3. He can withdraw after one day of the unstake operation, which is 21.

Note: CFX staked in different batches has its own lock-up period, and they do not affect each other.

How to participate PoS​

There are usually two ways to participate in PoS staking:

  1. Solo Staking – Users stake CFX independently.
  2. Staking via a PoS Pool Service – Users stake CFX through a PoS pool service.

Solo Mode​

Solo mode refers to a user running their own Validator node, staking CFX independently, and participating in PoS. In this mode, the Validator only allows the creator to stake, which is why it is called Solo Mode.

Steps to set up Solo Mode:

  1. Run a Conflux full node and create a PoS Validator account.
  2. Bind your Conflux account to the Validator address.
  3. Delegate CFX tokens to the Validator node for PoS participation—1,000 CFX equals one vote.
  4. Once the Validator node receives votes, it will automatically participate in PoS by casting network votes and contributing to block production.
  5. The PoS network rewards Validators every hour, with rewards sent directly to the Validator’s linked Conflux account.

During operation, users can increase or decrease their staked CFX as needed.

Since running a Conflux full node and staking a large amount of CFX is required (small stakes yield low returns, making it hard to break even), Solo Mode has a high cost and entry barrier. However, it offers greater control and is best suited for technically proficient large-scale holders ("whales").

For detailed setup instructions, refer to Become a Solo Validator.

Stake Through a PoS Pool​

Solo mode requires participants to run a Conflux full node themselves, which comes with high technical and financial barriers for most users.

To lower these barriers, many PoS Pool services have emerged within the ecosystem. These pools allow users to stake their CFX into a staking pool contract, while the pool operators handle running the Conflux full node and participating in the PoS mechanism on behalf of users.

The PoS Pool distributes the PoS rewards proportionally among users while deducting a small fee to cover operational costs.

For a detailed introduction to this method, refer to Stake Through a PoS Pool.

How to run PoS Pool​

If you also want to run a PoS Pool, you can refer this doc:

Risks of Participating in PoS​

No matter which way you choose, it's better to understand the staking risks:

  1. Force Retire
  2. Slash

Force Retire​

If a Validator node experiences downtime or network issues for more than 3 hours while serving on the PoS committee, it will be removed from the committee and enter the force retire state.

Consequences of Force Retire:​

  1. Automatic Unstaking – All CFX staked by the node will be automatically unstaked and enter the unstaking lock-up period. These CFX can only be withdrawn or restaked after the lock-up ends.
  2. 24-Hour Force Retire State – During this period:
    • The node cannot participate in PoS.
    • Any newly staked CFX will also be automatically unstaked and subjected to a 14-day unstaking period.
    • The node will not receive any PoS rewards.
    • However, the staked CFX principal is not lost.

Causes of Force Retire:​

  1. Extended server downtime or network failures affecting the Validator node.
  2. Incorrect upgrade operations, such as shutting down the node improperly during an update.
  3. Configuration errors, including mismatches between essential files like:
    • pos_config/pos_key
    • pos_db/secure_storage.json

Recovery Steps:​

To resume PoS participation, the Validator operator must:

  1. Fix the underlying issue (server, network, or configuration).
  2. Wait for the 24-hour force retire period to end.
  3. Restake the CFX to rejoin PoS.

For detailed troubleshooting and prevention methods, refer to other sections of this documentation.

Slash​

The only punishment rule in Conflux PoS applies to malicious behaviors such as double signing, which will result in the permanent locking of the staked CFX principal, making it irretrievable forever. This is an extremely severe penalty.

Causes of of Slash:​

  1. Two Validator nodes using the same pos_key to participate in PoS consensus.
  2. Maliciously modifying node code to attack network consensus.

The first scenario requires special attention from node operators to avoid accidental misconfigurations, such as operational mistakes or failures in primary-backup switching.

Additional doc​

For a detailed introduction to PoS penalties and risks, refer to:

FAQs​

  1. After a node is forcibly retired, how long does it usually take to resume participating in PoS and continue earning PoS rewards?
    The "force retire" status of a node lasts for one day. After the node is restored, it must wait for all unstaked CFX to complete unlocking before re-staking to resume PoS rewards. Therefore, the time required mainly depends on the unstaking duration of CFX, which ranges from 1 to 14 days.