🚀 SEC Official Clarifies Staking Activities Outside Securities Law Jurisdiction
#SEC #staking #ProofOfStake #DPoS #cryptocurrency #HesterPeirce #regulation #cryptoadoption #consensusmechanism #financialservices
According to PANews, Hester Peirce, head of the U.S. Securities and Exchange Commission's (SEC) crypto task force, stated in a speech on May 19 that technical activities involved in direct participation in Proof of Stake (PoS) and Delegated Proof of Stake (DPoS) systems do not fall under the jurisdiction of securities laws. This marks the first time a senior SEC official has made such a declaration regarding staking activities.
Peirce highlighted that the SEC plans to issue further guidance to clarify which activities are not subject to securities laws, including technical services that assist in participating in consensus mechanisms. She acknowledged that the SEC's past enforcement and regulatory approaches have not effectively prevented fraud and have instead caused confusion for compliant operators. This statement is seen as a positive signal for U.S. institutions engaging in staking activities. Figment, a staking service provider, noted that this development is expected to encourage broader adoption of staking services by U.S. institutions.#SEC #staking #ProofOfStake #DPoS #cryptocurrency #HesterPeirce #regulation #cryptoadoption #consensusmechanism #financialservices
🚀 Zama Introduces Network Staking Mechanism with DPoS Protocol
#Zama #NetworkStaking #DPoS #DelegatedProofOfStake #ZAMA #StakingRewards #KMS #FHE #InflationMechanism #Decentralization #Operators #Delegates #Staking #Unstaking
On February 2, Zama announced details about its network staking mechanism. According to BlockBeats, the Zama protocol utilizes a Delegated Proof of Stake (DPoS) system, allowing users and participants to delegate their ZAMA tokens to operators responsible for running the infrastructure. Currently, there are 18 active operators, including 13 Key Management Service (KMS) nodes and 5 Fully Homomorphic Encryption (FHE) coprocessors.
Staking rewards are derived from the protocol's inflation mechanism, with an annual inflation rate set at 5% of the total ZAMA supply initially. Of these rewards, 60% are allocated to KMS operators and their delegates, while 40% go to coprocessor operators and their delegates. The distribution is based on the square root of each operator's total staked amount, meaning delegating to smaller operators yields higher returns, promoting network decentralization.
Operators deduct a commission before distributing rewards to delegates, with a maximum cap of 20%. The remaining rewards are proportionally distributed among all delegates. Unstaking requires a 7-day unbinding period, although users can transfer or sell liquid staking certificates without waiting.#Zama #NetworkStaking #DPoS #DelegatedProofOfStake #ZAMA #StakingRewards #KMS #FHE #InflationMechanism #Decentralization #Operators #Delegates #Staking #Unstaking