PoS Staking
The primary network security of the ONET is assured by a Proof of Stake model that bonds NOM to validators either by the validators themselves or through delegation. Network security depends on the bonding to create both incentives for good behavior and disincentives for bad behavior. Staked NOM may not be used to mint new Denoms while staked, but will receive the staking rewards. Primary staking rewards are given based on a dual-regime model with an initial hyper-inflationary period followed by an indefinite stabilization period with a goal of 50% of NOM staked with nodes. The goal of the hyper-inflationary period is to build a strong network by heavily loading inflation for early adopters that participate in staking. The initial ramp up is to give the ability for more participants to come online before peak inflation takes place.
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