<p>Are you looking to earn rewards on your LUNC tokens? If so, LUNC staking is a viable option worth considering.</p><p>Luna Classic (LUNC) is the native token of Terra Classic, a public blockchain protocol for algorithmic stablecoins.</p><p>The Terra Luna blockchain was hard forked in May 2022, forming two separate chains. The new chain was named Terra 2.0 and the original blockchain was rebranded to Terra Classic with its token being named Luna Classic or LUNC.</p><p>In this article we’ll look at how to stake your LUNC on the Terra Classic blockchain.</p><h2>How to stake LUNC: Step-by-step guide to LUNC staking</h2><p>To earn a yield on your LUNC, you can either choose to run your own validator or delegate your LUNC to the validators of your choice. The latter is the easiest way to stake LUNC and can be done so via <a href="https://station.terraclassic.community/">Terra Classic Station</a>, the official wallet of Terra Classic.</p><p>For the best security and control over your funds, we recommend using a Ledger Hardware Wallet. To delegate your tokens, you should ensure they are stored on your Ledger or the&nbsp;Terra Classic Station wallet, and then follow these steps below:</p><ul><li>Step 1: Go to the&nbsp;<a href="https://station.terraclassic.community/">Terra Staking Portal</a> and connect your Terra Station wallet.</li><li>Step 2: Select a validator from the list by clicking on their name. If you are unsure which validator to delegate to, refer to our FAQ on choosing a validator for guidance.</li><li>Step 3: Once you have chosen a validator, click ‘Delegate’ and enter the number of tokens you would like to stake.</li><li>Step 4: Click ‘Submit’ and finalize by clicking stake and confirming the transaction in your wallet.</li></ul><p>It’s worth keeping some tokens in your wallet to pay for transaction fees. &nbsp;Without tokens for fees, you can’t make any transactions.</p><p><i>Note: You must select the “Terra Classic” network when setting up your wallet.</i></p><h2>Do I need to maintain my LUNC staking in any way?</h2><p>Once you have delegated your LUNC, there are things you need to consider going forward.</p><p>Firstly, delegating from one validator to another can be done without waiting for the unbonding period. You might consider redelegating if your current validator raises their commission rate or gets jailed for misbehavior on-chain. Once redelegated, you have to wait for 21 days before you are able to redelegate again.</p><p>Secondly, rewards are not auto-compounded. To get the most out of your tokens, you should consider claiming and staking your rewards more frequently, but consider that each transaction will cost you some gas. By using our Luna Classic staking calculator, you can calculate the optimal re-stake frequency for your amount of LUNC. Some tools, such as restake.app, will enable you to pick a validator who will auto-compound your rewards for you, so keep this in mind.Lastly, as a participant in the Terra Ecosystem, once you have staked your tokens, you can vote on Luna Classic Governance Proposals. While your contribution and vote are highly valuable to the ecosystem, participating does not affect the sum of your rewards.</p><p>By delegating to a good long-term oriented validator, you can reduce most of your maintenance and only have to check back to restake your rewards.</p><h2>What are the risks to staking LUNC</h2><p>Whilst we want to ensure staking is as safe and transparent as possible, there are still things to consider regarding whether a specific staking option is right for you.</p><h3>Protocol security risks</h3><p>There is an inherent risk that the protocol could contain unknown bugs. This not only applies to staking but your LUNC investment in general.</p><h3>Slashing risk</h3><p>LUNC delegated to a validator can be partially slashed if the validator misbehaves. On top of getting slashed, a validator can also be jailed, during which time you will not be earning any rewards. You can get slashed up to 5% for double signing events.</p><h3>Unbonding risk</h3><p>The unbonding period for LUNC is 21 days. Crypto markets are highly volatile, and investors need to be aware that they cannot sell their tokens immediately once they have staked them. They first need to wait 21 days for the tokens to unbond before they become liquid. Please take note of this lockup before you decide to stake. Consider keeping funds liquid if you do not intend to hold LUNC long-term.</p><h3>Dropping out of the active set</h3><p>On top of potentially losing out on rewards if your validator gets slashed, a validator could also drop out of the top 130, meaning they no longer earn any rewards. Ensure you check back frequently to ensure your validator is active, not jailed and has not raised their commission fees.</p><p>Please note that this is not an exhaustive list of all the risks related to staking.</p><h2>What consensus algorithm does Luna Classic use?</h2><p>Luna Classic is powered by Tendermint BFT. Tendermint BFT is a Byzantine Fault Tolerant (BFT) consensus engine developed by Tendermint. It offers instant finality, is horizontally scalable and is secure against malicious actors. It is also open-source, meaning anyone can inspect and use the code. Additionally, it is simple to set up and use, allowing developers to quickly and easily build distributed applications.</p><p>The active validator set consists of the 130 highest-ranked validators by staked tokens, from which 1 validator is randomly selected to propose a block with 66% of the remaining active validators being required to attest the block in order for it to become final. The higher the stake, the more likely they are to be selected.</p><h2>Where to store LUNC?</h2><p>Looking for a crypto wallet? <a href="https://onelink.to/exodus-stakingreward">Exodus Wallet</a> has an intuitive interface, a built-in exchange feature and supports over 200+ assets. Manage your cryptocurrency portfolio securely and with ease using Exodus Wallet! Visit their website to <a href="https://onelink.to/exodus-stakingreward">learn more and download today</a>.</p>

Everything You Need to Know About Luna Classic LUNC Staking