Staking Overview

Introduction

Fenine Network implements a unique Federated Proof-of-Stake (FPoS) consensus mechanism that combines validator staking with an innovative 8-level proximity reward system. This creates powerful economic incentives for network growth and decentralization.

Quick Facts:

Minimum Validator Stake: 10,000 FEN
Minimum Delegation: 1,000 FEN
Base APY: 10%
Proximity Bonus: Up to 12-15% total APY
Epoch Duration: 200 blocks (~10 minutes)

How Staking Works

For Validators
For Delegators
Proximity System

Become a Validator

Requirements:

Stake minimum 10,000 FEN tokens
Register through FenineSystem contract
Provide commission rate (1-100%)

Responsibilities:

Propose and validate blocks
Maintain high uptime (>95%)
Act honestly (subject to slashing)

Rewards:

Block rewards: 3.5 FEN per block
Transaction fees (priority fees)
Commission from delegators
Proximity rewards from referrals

Example Monthly Earnings (10,000 FEN staked):

Base rewards:      ~83 FEN/month (10% APY)
Commission (10%):  ~8 FEN from delegators
Proximity bonus:   ~17 FEN (2% from network)
───────────────────────────────────────────
Total:             ~108 FEN/month (13% APY)

Become a Delegator

Requirements:

Minimum 1,000 FEN tokens
Choose a validator to delegate to
Optional: Use referral code for proximity rewards

Benefits:

Earn staking rewards without running infrastructure
Share in validator’s block rewards
Participate in proximity reward network
Flexible: Undelegate anytime (21-day unbonding)

Rewards:

Base APY: 10% (minus validator commission)
Proximity rewards from your referrals
No technical knowledge required

Example Monthly Earnings (1,000 FEN delegated):

Base rewards:      ~8.3 FEN/month (10% APY)
- Commission 5%:   -0.4 FEN
Proximity bonus:   ~1.7 FEN (2% from referrals)
───────────────────────────────────────────
Net earnings:      ~9.6 FEN/month (11.5% APY)

8-Level Referral Network

Fenine’s unique feature: earn rewards from 8 levels of referrals.How it Works:

You (Level 0)
├─ Direct Referrals (Level 1): Earn 7% of their rewards
│  └─ Their Referrals (Level 2): Earn 5% of their rewards
│     └─ Level 3: Earn 3%
│        └─ Level 4: Earn 2%
│           └─ Level 5: Earn 1.5%
│              └─ Level 6: Earn 1%
│                 └─ Level 7: Earn 0.5%
│                    └─ Level 8: Earn 0.25%

Total Possible APY: 10% base + up to 5% proximity = 15% APYSee Proximity Rewards for details.

Staking Architecture

Contract-Layer Validators

Important: Fenine uses contract-layer validators, not traditional node-layer validators.Validator management happens entirely through the FenineSystem smart contract at 0x0000000000000000000000000000000000001000.You do NOT need to run special validator node software. Block production and consensus happen automatically once you register as a validator.

System Components

FenineSystem

Core validator registry, staking logic, epoch management

RewardManager

Reward calculation, distribution, proximity tree

TaxManager

Reward taxation (10%), burn mechanism

Validator Lifecycle

State Descriptions:

State	Description	Can Validate?	Can Unstake?
Pending	Registered, waiting for next epoch	❌	✅ (no delay)
Active	Participating in consensus	✅	✅ (21-day delay)
Jailed	Penalized for misbehavior	❌	✅ (21-day delay)
Unbonding	Waiting for unstake period	❌	⏳ (counting down)
Exited	Fully unstaked	❌	✅ (can restake)

Reward Distribution

Emission Schedule

Annual Issuance: 10,520,000 FEN (~10.52% of max supply)

E_{\\text{annual}} = 10,520,000 \\text{ FEN}

Block Reward: 3.5 FEN per block

R_{\\text{block}} = 3.5 \\text{ FEN}

Daily Emissions: ~28,800 blocks/day

E_{\\text{daily}} = \\frac{86,400}{3} \\times 3.5 \\approx 100,800 \\text{ FEN/day}

Reward Formula

For a validator with stake

S_v

and delegated stake

S_d

R_{\\text{validator}} = R_{\\text{base}} + R_{\\text{commission}} + R_{\\text{proximity}}

Where:

$R_{\\text{base}} = \\frac{S_v}{S_{\\text{total}}} \\times E_{\\text{epoch}}$
$R_{\\text{commission}} = \\frac{S_d}{S_{\\text{total}}} \\times E_{\\text{epoch}} \\times c$
$R_{\\text{proximity}} = \\sum_{i=1}^{8} \\sum_{j \\in L_i} R_j \\times \\alpha_i$

Parameters:

$S_{\\text{total}}$ : Total network stake
$E_{\\text{epoch}}$ : Epoch emission (700 FEN)
$c$ : Validator commission rate (e.g., 0.05 = 5%)
$\\alpha_i$ : Proximity coefficient for level $i$

Example Calculation

Scenario:

Your stake: 10,000 FEN
Delegated to you: 50,000 FEN
Total network stake: 10,000,000 FEN
Your commission: 10%
Epoch emission: 700 FEN

Base Rewards:

R_{\\text{base}} = \\frac{10,000}{10,000,000} \\times 700 = 0.7 \\text{ FEN}

Commission Rewards:

R_{\\text{commission}} = \\frac{50,000}{10,000,000} \\times 700 \\times 0.10 = 0.35 \\text{ FEN}

Total per Epoch: 1.05 FEN (~144 epochs/day = 151 FEN/day)Monthly: ~4,530 FEN (~54% APY on 10K stake)

Economic Model

Dual Burn Mechanism

Fenine implements two deflationary mechanisms:

1. EIP-1559 Base Fee Burn

Every transaction burns the base fee:

B_{\\text{1559}} = \\text{BaseFee} \\times G_{\\text{used}}

Annual Burn (at 10 gwei average):

B_{\\text{annual}} \\approx 1,580,000 \\text{ FEN}

This is ~15% of annual emissions.

2. Transaction Fee Taxation

When claiming staking rewards:

10% tax on claimed rewards
Tax goes to treasury for development and ecosystem growth

Note: This tax does NOT reduce circulating supply. Only EIP-1559 base fee burn is deflationary.

Net Inflation

Supply Dynamics:

\\Delta S = E_{\\text{annual}} - B_{\\text{1559}}

Scenarios:

Network Activity	Base Fee	EIP-1559 Burn	Net Inflation
Low	1 gwei	158K FEN	+10.36M (+10.36%)
Medium	10 gwei	1.58M FEN	+8.94M (+8.94%)
High	67 gwei	10.6M FEN	-80K (-0.08%)
Very High	100 gwei	15.8M FEN	-5.28M (-5.28%)

Network becomes deflationary at 67 gwei average base fee.

Risk Factors

Understand the Risks:

Slashing: Validators can lose stake for misbehavior (double-signing, downtime)
Unbonding Period: 21 days to withdraw after unstaking
Commission Changes: Validators can change commission rates
Smart Contract Risk: Staking happens via smart contracts
Market Risk: FEN price volatility affects USD value of rewards

Slashing Conditions

Offense	Penalty	Description
Double-Sign	5% slash	Signing two blocks at same height
Downtime	Jailed	<95% uptime over 200 blocks
Invalid Block	1% slash	Proposing invalid block
Censorship	Warning → Jail	Consistently ignoring valid transactions

Slashed funds are burned, reducing total supply.

Getting Started

Choose Your Path

Validator or Delegator?

Have 10,000+ FEN + technical skills → Validator
Have 100+ FEN, want passive income → Delegator

Get FEN Tokens

Buy on exchanges (CEX/DEX)
Bridge from other chains
Minimum: 10,000 FEN (validator) or 100 FEN (delegator)

Set Up Wallet

MetaMask, Trust Wallet, or hardware wallet
Add Fenine Network (Chain ID: 5881)
Secure your private keys

Stake Your FEN

Validators: See Run a ValidatorDelegators: See Become a Delegator

Earn Rewards

Claim rewards via stake.fene.app
Compound for higher APY
Share referral code for proximity rewards

Staking Options Comparison

Feature	Validator	Delegator
Minimum Stake	10,000 FEN	100 FEN
Technical Skills	Required	Not required
Infrastructure	Optional (contract-layer)	None
Base APY	10%	10% (minus commission)
Additional Rewards	Commission + Proximity	Proximity only
Slashing Risk	Yes	No (validator slashed, not you)
Governance	Full voting power	Proportional to stake
Unbonding Period	21 days	21 days

Frequently Asked Questions

Do I need to run a node to be a validator?

No! Fenine uses contract-layer validators. You only need to:

Stake 10,000 FEN via smart contract
Register your validator address
Set your commission rate

The protocol automatically includes you in block production. You CAN run a node for RPC access or network monitoring, but it’s not required for validation.

What happens if my delegated validator gets slashed?

Delegator Protection: If your validator is slashed, only the validator’s stake is penalized, not yours.However:

Validator may be jailed (stop earning)
You may want to redelegate to active validator
No unbonding period when redelegating

Can I stake from a hardware wallet?

Yes! Staking works with:

Ledger (via MetaMask connection)
Trezor (via MetaMask connection)
Any wallet supporting custom EVM chains

For maximum security, use hardware wallet for staking.

How do I maximize my APY?

Strategies:

Auto-compound: Claim and restake rewards weekly
Build proximity network: Share referral code
Choose low-commission validator: More rewards for you
Stake early: APY decreases as network grows
Become validator: Earn commission from delegators

Realistic range: 10-15% APY with active participation.

What is the unbonding period?

21 days for both validators and delegators.When you unstake:

Tokens enter “unbonding” state
Stop earning rewards immediately
After 21 days, can withdraw to wallet

Why? Security measure to prevent rapid unstaking during attacks.

Can I lose my staked FEN?

Validators: Yes, via slashing for misbehavior.Delegators: No slashing risk directly, but:

Smart contract risk (audited but not zero)
Market risk (FEN price volatility)
Opportunity cost (locked for 21 days if unbonding)

Always stake amounts you can afford to lock up.

Resources

Stake Now

Official staking interface

Run a Validator

Complete validator setup guide

Become a Delegator

Delegation tutorial

Proximity Rewards

Referral system explained

FPoS Architecture

Technical deep dive

FenineSystem Contract

Smart contract API reference

Need Help?

Discord: #staking-support
Email: staking@fene.network
Staking Dashboard: stake.fene.app

Validator Office Hours: Fridays 2PM UTC

Introduction

Why Build on Fenine

Staking

Community

Introduction

How Staking Works

Become a Validator

Become a Delegator

8-Level Referral Network

Staking Architecture

Contract-Layer Validators

System Components

FenineSystem

RewardManager

TaxManager

Validator Lifecycle

Reward Distribution

Emission Schedule

Reward Formula

Economic Model

Dual Burn Mechanism

Risk Factors

Slashing Conditions

Getting Started

Staking Options Comparison

Frequently Asked Questions

Resources

Stake Now

Run a Validator

Become a Delegator

Proximity Rewards

FPoS Architecture

FenineSystem Contract

​Introduction

​How Staking Works

​Become a Validator

​Become a Delegator

​8-Level Referral Network

​Staking Architecture

​Contract-Layer Validators

​System Components

FenineSystem

RewardManager

TaxManager

​Validator Lifecycle

​Reward Distribution

​Emission Schedule

​Reward Formula

​Economic Model

​Dual Burn Mechanism

​Risk Factors

​Slashing Conditions

​Getting Started

​Staking Options Comparison

​Frequently Asked Questions

​Resources

Stake Now

Run a Validator

Become a Delegator

Proximity Rewards

FPoS Architecture

FenineSystem Contract

Introduction

How Staking Works

Become a Validator

Become a Delegator

8-Level Referral Network

Staking Architecture

Contract-Layer Validators

System Components

Validator Lifecycle

Reward Distribution

Emission Schedule

Reward Formula

Economic Model

Dual Burn Mechanism

Risk Factors

Slashing Conditions

Getting Started

Staking Options Comparison

Frequently Asked Questions

Resources