How Staking Works

A plain-language guide to staking METAL
on the Metal Blockchain.

What Is Staking?

Staking is how the Metal Blockchain stays secure. Instead of using energy-intensive mining like Bitcoin, Metal Blockchain relies on participants who lock up — or "stake" — their METAL tokens as a financial commitment to honest participation. In return, the protocol rewards them with newly minted METAL.

Think of it as putting up collateral to earn the right to help run the network, while being compensated for the service. You do not need to understand the underlying technology to participate. What matters is understanding the two roles available to you, and the rules that govern how rewards are earned.

The Two Roles: Validators and Delegators

A validator is someone who runs a dedicated server — called a node — that actively participates in confirming transactions on Metal Blockchain. Running a validator requires technical setup, a committed stake of your own METAL, and a server that stays online reliably around the clock.

A delegator adds their METAL to a validator's existing stake, backing a node they trust — without running any software themselves. In return, they earn a proportional share of the rewards that node generates during the delegation period, minus a small fee paid to the validator for doing the operational work.

The relationship in plain terms

The validator runs the node and keeps it online. The delegator adds their METAL to that node's stake. The protocol distributes rewards to both based on their contribution. Delegation is designed to be non-custodial — BlockEmpowered never takes hold of your funds — and the arrangement is governed by the Metal Blockchain protocol itself.

Most people participating in Metal Blockchain staking do so as delegators. This guide focuses on that experience.

Where Rewards Come From

METAL staking rewards do not come from transaction fees. They come from new METAL being minted by the protocol — gradually released from a reserve and distributed to active stakers as compensation for securing the network.

The protocol controls how much METAL is issued each year using a consumption rate that adjusts dynamically within a fixed band:

The minimum rate is 10% per year, for the shortest delegations.
The maximum rate is 12% per year, for a delegation that runs the full 365-day minting window.
The longer you commit your stake — up to that one-year window — the closer your rate moves to 12%. The protocol rewards longer commitments.
A shorter delegation earns closer to the 10% floor.

Your reward grows with two things: how much you stake, and how long you stake it within the 365-day minting window. A larger stake and a longer delegation period both push your reward higher.

The 80% Uptime Rule

This is the most important rule in Metal Blockchain staking — and the one that surprises most first-time participants.

Critical rule

Under the protocol's current rules, uptime on Metal Blockchain works as a gate rather than a sliding scale: a validator either meets the 80% minimum uptime threshold for a period, or no rewards are paid to that node's stakers for it — not a reduced reward.

A validator running at 99% uptime and one running at 85% uptime pay their delegators identically. The margin above the threshold does not change the reward.
A validator whose uptime finishes below 80% for the period costs every delegator on that node the entire period's rewards, regardless of stake size or duration.
Uptime is not self-reported by the validator — it is observed by the rest of the network as part of how the protocol tracks node reliability.

This is why reviewing a validator's historical uptime record before delegating is essential, not optional. BlockEmpowered publishes its full uptime history publicly for exactly this reason.

Delegation Fees

When you delegate to a validator, the validator charges a delegation fee — a percentage of your earned rewards paid in exchange for running the node on your behalf.

For example: if your delegation earned 100 METAL in a period and the delegation fee is 10%, you keep 90 METAL and the validator keeps 10 METAL.

The fee is set by the validator before the staking period begins and does not change during it.
A higher fee is not automatically bad. A validator with a 15% fee and perfect uptime will deliver more to delegators than one with a 5% fee and inconsistent performance.
The figure that matters is your net APR — your annualized return after the fee is deducted. That is your actual take-home return.

You can always see BlockEmpowered's current delegation fee on the Delegate page before committing any stake.

Lock-Up Periods and Planning Your Delegation

When you delegate your METAL, it is locked for the duration of your chosen delegation period. You cannot move, sell, or transfer it until the period ends. How the protocol releases your original stake and any earned rewards at that point is described in the official Metal Blockchain documentation.

This lock is enforced by the Metal Blockchain protocol. Delegation is designed to be non-custodial: BlockEmpowered never takes hold of your METAL, and you delegate entirely from your own Metal Wallet.

Your delegation period must fall entirely within the validator's own active window — you cannot delegate past the date the validator's stake expires.
Once a delegation is submitted to the blockchain, it cannot be cancelled or shortened. Early exits are not possible.
Longer delegations may improve your reward depending on period structure, but they reduce your flexibility.

A note for first-time delegators

If you are unsure how long to lock up your METAL, choose a shorter period first. You can always re-delegate after a period ends. Understanding the cycle before committing to a longer lock-up is the cautious approach.