As a long-time investor, I see staking @Somnia Official $SOMI like a real stress-test of the ecosystem. The security mechanism is based on Proof of Stake (PoS), which means validators not only validate transactions but also 'protect' the network. When staking SOMI tokens, validators lock their assets as collateral – this is the first line of defense.
Do well and you receive rewards, act carelessly or attack the network and you will be slashed. I have seen some validators lose everything just because of double-sign – that feeling is very painful, but it keeps the network safe.
Validator rewards consist of block reward + transaction fees. The SOMI model gradually adjusts rewards over time, similar to Bitcoin's deflationary mechanism, helping maintain scarcity.
Optimizing infrastructure and high uptime for validators will yield superior APR. Small validators, if not optimized, can easily see a drop in income and even get out of the game – the market self-corrects. This is a point I like, as it prevents excessive centralization, unlike some chains I have participated in where 'whales' consume most of the rewards.
Compared to Ethereum, SOMI has lower gas fees, faster finality times, suitable for small retail investors who want to stake at low costs. Cosmos is known for its multi-chain model and IBC, but $SOMI
In general, if you hold for the long term, staking $SOMI
@Somnia Official #somnia #SOMI
