This guide will help you understand the role of stakers in the Fluence Protocol and how to become one using the Fluence Staking Application. Learn how to earn substantial rewards by powering the decentralized physical infrastructure (DePIN).
First, you'll learn about the mechanics and economics behind the rewards earned.
Second, you'll be introduced to the Staking application—the main control panel for analyzing staking opportunities and monitoring the metrics of staked assets.
Finally, you'll read a step-by-step guide on how to become part of the Fluence network and stake for your first Capacity Commitment.
Fluence is a decentralized compute marketplace powered by blockchain economics.
Proof of Capacity (PoC) is a mechanism utilized by the Fluence network to ensure that compute providers can deliver the computational capacity they committed to the Marketplace . Providers define their compute resources asCompute Units (CUs), where each CU consists of 1 core, 4 GB of RAM, and an additional storage space.
To demonstrate continuous readiness to provide compute power for user applications, CUs send cryptographic proofs (PoC) to the blockchain. In each epoch (24 hours) of capacity provisioned but not utilized by user applciations, submited proofs determine the reward paid in FLT tokens.
To incentivize providers to act honestly, a collateral must be staked. If anyone acts dishonestly—for example, if Compute Units fail to submit proofs—this collateral is slashed.
This mechanism involves two parties: the Compute Provider with compute power, who earns from proof submission and renting compute power through the marketplace; and the Staker, who earns rewards from providing the collateral. Note that only staked CUs are considered active in the marketplace, which is a precurosry condition to be able to participate in the reward and user compute programs.
It's in both parties' interests to act wisely. The compute provider puts their reputation at risk—no one wants to stake for or rent from an untrustworthy provider. Continued failure of the CU to provide the expected proofs leads to penalties and partial slashing of the collateral. If the slashing threshold is reached, the staking agreement is cancelled.
A Capacity Commitment is a formal declaration made by a provider, stating their intention to offer a specific amount of computing capacity to the Fluence network for a set period. This commitment is made for each Compute Peer (physical server) that a provider wants to commit to the Fluence network.
Each CC has it’s own characteristics, most of them defined by the Provider while registration, some - by the Network.
CC parameters set by Provider: