Oraichain Mainnet: ORAI Native Tokens & Staking

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Oraichain

8 min readMar 19, 2021

After the successful launch of Oraichain’s Mainnet, the ORAI native token serves as utility to fuel and power the Mainnet. Anybody can join and be part of the network to further stabilise and help with the decentralisation whilst being rewarded on average 29% est. APR.

There are two parts that help understand how the Oraichain Mainnet works:

Native ORAI tokens and staking (explained in this article)
Oraichain incentives. Please read the following article Oraichain Mainnet incentives — Rewards for delegators and validators

What is the ORAI native token?

With the launch of the Oraichain Mainnet on February 24th 2021, ORAI tokens are required to secure and power the decentralized oracle network of validators. The native ORAI token is also used in different scenarios within the Oraichain AI ecosystem. Below are the main purposes and token utility:

Transaction fee: ORAI tokens are required as a method of payment for AI oracle services (price prediction, risk score, price feeds, etc.), AI services (to run AI requests sent to the Oraichain network, utilize AI APIs and Test Cases on the Oraichain AI Marketplace or have access to yAI.finance AI-based strategies) and future products and services powered by Oraichain.
Staking: validators in the Oraichain network are required to stake ORAI in order to be selected to create blocks or fulfill data requests.
DAO: the Oraichain network will include community governance with key protocol upgrades and parameter changes to be voted by ORAI token holders.

How does the Mainnet staking work?

In order to stake to the Mainnet, you need to swap ERC20 and BEP20 ORAI tokens to the native ORAI token. You can use the native token to stake as follows:

If you are a validator, you must run a node and stake your ORAI to your validator. You will have a chance to receive block rewards when creating new blocks.
If you are an ORAI token holder, you can delegate your ORAI to any validator. You should consider validators based on commission, uptime, reputation, and other variables.

Note that validators can set a commission for delegators on their node.

Step by step guides for the Mainnet staking

Check the following guides to become a delegator on the Oraichain Mainnet and earn rewards by staking your ORAI tokens.

How to create an ORAI wallet: https://youtu.be/QgxSHAekj9Q
How to swap ERC20 or BEP20 ORAI to Native ORAI tokens: https://youtu.be/WL9f4p_nNYs
How to delegate on the Oraichain Mainnet: https://youtu.be/u8-fr-iixjM

Do you want to be part of the Oraichain Mainnet as a validator? Check the guide How to become a validator on the Oraichain Mainnet.

FAQs

1. What are the estimated rewards APR % on Oraichain Mainnet?

The est. APR is 29% on average for all validators and delegators if the commission is 0% on the validator.

2. Which validator should I choose to delegate my ORAI tokens?

The average 29% est. APR is the same across all nodes, but it can be decreased if the following scenarios happen:

The validator uptime is lower than 99%.
The commission is higher than 0%.

3. What is the commission fee?

The commission fee is the % of the rewards that validators receive from delegators. Assuming validators apply a 0% commission, the same rewards est. APR% is received by both validators and delegators. In the case that validators apply, for example, a 10% commission (with a 29% est. APR in average): the minimum est. APR for validators would be 31.9% (29%*1.1) while delegators will get 26.1% (29%*0.9).

4. How will the minting of ORAI native tokens work? Are there any risks?

There is no way to mint native ORAI from a smart contract. ORAI is minted from the block reward.

5. How will the circulating supply or ORAI be affected as the native ORAI token coexists with ERC20 and BEP20?

The circulating supply is managed by counting how many ORAI are not in the Oraichain-managed wallets, these are:

The multi-sig wallet: 17,278,290 ORAI
Wallet for block rewards delegated by the team on genesis and trusted nodes.

Two weeks after the Mainnet calibration (Feb 24th), a 0.39% for the inflation rate was applied. The inflation rate could be adjusted depending on the number of ORAI staked on the Mainnet. The more staked ORAI, the higher the inflation rate should be. The ORAI DAO will be used to vote the inflation rate in the future.

This means the following:

Rewards for each block: 0.01069 ORAI
Blocks per year: 6,311,520
ORAI minted per year: 67,470 ORAI

The mainnet proposals can be found here: https://scan.orai.io/proposals

🔥 Burning events will take place on a monthly basis where ORAI ERC20 tokens will be burned (from the ecosystem allocation). The amount of ORAI burned will correspond to the amount of ORAI native tokens that are minted as part of the block rewards.

6. How will Genesis and Trusted validators be able to get a higher est. APR for rewards (36% and 33% respectively) as part of the pre-Mainnet launch campaigns while the est. APR is fixed at an average of 29% for Mainnet?

The est. APR is controlled through the inflation rate and community tax. Genesis and Trusted validators will get 36% and 33% respectively as part of the pre-Mainnet launch campaigns.

Genesis and Trusted validators and delegators will get the incremental percentage of their rewards separately based on the number of ORAI rewards deposited on their node at the moment for a period of six months.

[Genesis Additional Rewards = Total ORAI staked*(36% est. APR — Mainnet est. APR%) for 6 months]

[Trusted Additional Rewards = Total ORAI staked*(33% est. APR — Mainnet est. APR%) for 6 months]

The incremental rewards for Genesis and Trusted validators will be sent every 3 to 9 days to their ORAI wallets.

Delegators on the Genesis and Trusted nodes competitions need to send their native ORAI wallet on the Mainnet. For all the delegators that previously deposited ERC20 on validators part of the Battle Of The Nodes campaigns for Genesis and Trusted validators, a simple page will be enabled for these delegators to input their Mainnet address. They will have to sign the TX on the Ethereum network. This way, they will be able to associate the wallets where they will receive the incremental rewards.

7. What is the community tax?

It is the tax paid which is deposited to an ORAI pool when each block is minted. ORAI holders will be the governors and decide how this ORAI pool is used via governance voting in the future, for example to fund new AI projects on the AI Data Hub, burn the rewards, etc. The community tax % could also be adjusted by voting.

8. Do I need to set up a new wallet to stake on the Oraichain Mainnet?

Yes, an ORAI wallet is required to hold ORAI native tokens. Check the Oraichain wallet creation tutorial.

9. Is the ORAI wallet safe?

The ORAI wallet is based on the Cosmos wallet with the latest updates, the security is as high as the Cosmos wallet.

10. Which Cosmos-based wallets will the native ORAI tokens be compatible with? When will they be available?

We are contacting Cosmostation and other potential Cosmos-based wallets to have more options to hold ORAI native tokens. We expect these integrations will be available in Q2.

Oraichain will launch the ORAI wallet app on Google Play and the App store in the near future.

11. Is there an explorer for the Oraichain Mainnet?

Yes, it’s called ORAISCAN, check it out on https://scan.orai.io/. Read more on the previous medium article: https://medium.com/oraichain/introducing-the-oraichain-explorer-and-orai-wallet-8cd13593fed5

12. Is the ORAI native token available to deposit or trade on exchanges? Are there plans to do so?

We plan to integrate the ORAI native tokens on KuCoin and people will be able to trade them. Future exchange listings will also have the option to trade ORAI native tokens.

13. Are there any costs involved for swapping ERC20 or BEP20 to the native ORAI tokens?

For now, you only pay the transaction fee when depositing your ERC20 or BEP20 to the swapping smart contract. Swap your tokens following the guide How to swap ERC20 or BEP20 ORAI to Native ORAI tokens or go directly to bridge.orai.io. Please note that the swap can take up to 8 hours .

14. How will the swap from native to ERC20/BEP20 work?

There will be a locked smart contract that performs the swap, users will be able to deposit their native ORAI to that contract, then the transfer from ERC20/BEP20 to native token will happen. However, only the swap from ERC20/BEP20 to native is available at the moment, The swap from native to ERC20/BEP20 is not available yet. It will be implemented in the coming weeks.

15. Can I keep my ERC20 or BEP20 tokens? Will there be any planned automatic swap in the future?

You can keep ERC20 and BEP20 for now. If there are plans to swap to ORAI native tokens to be the only option in the future, Oraichain will make sure to give sufficient notice and inform all ORAI holders through all the communication channels.

16. Is the value of ORAI native tokens the same as ERC20 or BEP20?

All ORAI tokens have the same inherent value as the different tokens are interchangeable 1:1.

17. Is there a deadline to swap from ERC20 or BEP20 for staking?

No, the bridge will be opened as long as all the different ORAI tokens are available.

18. How can I become a validator on the Oraichain Mainnet? Are there any instructions or guides to run a node?

Check the following article: https://link.medium.com/khhZki8GKeb

19. What are the transaction fees on the Oraichain Mainnet?

The transaction fee is currently 0.00005 ORAI on the Oraichain Mainnet. It might be adjusted in the future.

20. How can I get support or ask additional questions?

Please ask any additional questions in our Technical support channel on Telegram: https://t.me/oraitech

About Oraichain

Oraichain is the world’s first AI-powered oracle and ecosystem for blockchains. Oraichain data oracle platform aggregates and connects Artificial Intelligence APIs to smart contracts and regular applications. Founded by Dr. Chung Dao, Oraichain’s mission is to be the portal between AI and blockchain technologies, serving as a foundational base for the creation of a new generation of smart contracts and Dapps leveraging AI, aiming to revolutionize the Artificial Intelligence, DeFi, and Blockchain industries.

Unlike regular oracles using raw data, Oraichain’s AI oracle uniquely uses AI APIs to process and create data on-the-fly via virtual machines on smart contracts. Data quality, reliability and security are enhanced by using test cases, which help to avoid intermediaries, increase trust and open up unprecedented application functionalities.

Beyond data oracles, Oraichain interconnects Artificial Intelligence and Blockchain technologies. With AI as the cornerstone, the Oraichain ecosystem contains an AI marketplace, a Data & Request Hub, Publisher Service, Training Service, and Dapp Hosting.

Oraichain network provides the infrastructure and consensus mechanisms for Blockchain and AI training. These interconnected ecosystems accelerate the development of Web3, DeFi, enterprise and academia applications. yAI.finance is the first use case of Oraichain, a DeFi platform using unique AI-based features and strategies. Oraichain AI Marketplace offers AI products and APIs with the goal of becoming the one-stop-shop for Artificial Intelligence services.