⚙️Pi Staking Mechanics Overview

Overview on how Pi Staking works

Pi Staking's essential mechanics are centered around the concept of a Pi Pool. This term, inspired by RocketPool, represents a validator in the Pi Staking ecosystem. A Pi Pool is funded through PLS contributed by liquid stakers from the deposit pool and PLS provided by node operators during their registration with Pi Staking.

To become a validator on PulseChain, the current requirement is 32,000,000 PLS. Pi Staking's Pi Pool design reduces the initial cost for node operators to 16,000,000 PLS. More information about how Pi Pools function can be found here.

To promote responsible behavior and secure the PLS borrowed from the liquid staker's deposit pool, node operators are required to stake a collateral in PPY. By staking PPY, they also become eligible for monthly PPY rewards. Additional information about the PPY rewards cycle is available here.

If a validator fails to secure rewards on PulseChain, the staked PPY of the node operator is slashed to compensate for the liquid staker’s lost rewards.