Flow FAQ
What is Flow's inflation and reward rate*?
- Inflation starts at 20% during the first month, 5% for months 2-18, and 3% after month 18.
- The reward rate will be 28.57% during the first month, 15% for months 2-18, and 9% after month 18.
* Reward rates published by Coinbase are estimates based on publicly available information from third-party sources. Coinbase has not verified and does not guarantee the accuracy of this information. Reward rates on some protocols may vary based on the amount staked and/or other variables, including validator performance, so you should not rely on the accuracy of any reward rate ranges we publish, which are intended to provide an estimate. The actual rate of rewards earned may vary substantially and may change over time and Coinbase does not guarantee that you will receive any staking rewards. Staked assets may be subject to slashing penalties and risk of loss is possible, including up to the full loss of principal.
What are the risks associated with delegating?
Delegating to a poorly operating node (e.g. one that experiences downtime) can result in missed rewards.
There will be no slashing at network launch. When slashing is enabled, delegators will be subject to proportional slashing along with the nodes they are delegating to.
When will my delegation be eligible to earn rewards?
Flow operates utilizing “sporks,” which define the epoch boundaries that determine when staked tokens are eligible to earn rewards. Every epoch boundary runs on a 7-day cycle, but is reset if a spork occurs. For example, if an epoch boundary were to begin with a spork on 12/1, the tokens of an entity who staked their FLOW after 12/1 would not be eligible to earn rewards until 12/7.
Currently, the epoch boundary resets every Tuesday at 7 PM ET / 10 PM PT. The event of another spork in the network may change on which day the epoch boundaries reset.
Are my rewards automatically re-staked?
No. Rewards are paid out on the last day of each epoch, and if you would like to re-stake your earned FLOW to the validator, you must do so manually following the original delegation procedure. FLOW must be re-staked to the validator by 10PM PT on the day they are paid out in order to start earning rewards in the next epoch, otherwise they will be eligible to earn rewards as part of your delegation in the epoch following.
How does Coinbase's service fee work?
Coinbase charges a percentage service fee on all rewards earned by tokens delegated to our Flow validator. The service fee is paid to Coinbase automatically by the protocol. You can withdraw your rewards from the protocol directly.