Nomic (NOM) Staking

About Nomic (NOM)

Nomic is a decentralized custody engine designed to seamlessly integrate Bitcoin (BTC) into the Cosmos ecosystem. By operating as a Proof-of-Stake (PoS) Bitcoin sidechain, Nomic enables the issuance of nBTC—a token fully backed 1:1 by BTC—facilitating secure and efficient cross-chain interactions without relying on centralized intermediaries.

What Makes Nomic Special?

Nomic introduces several key innovations that set it apart in the blockchain landscape:

• Decentralized Bitcoin Custody: Nomic uses a validator-controlled multisignature (multisig) script to manage Bitcoin reserves securely. This decentralized approach eliminates reliance on centralized entities, ensuring trustless management of funds.
• Seamless Bitcoin-to-Cosmos Integration: By bridging Bitcoin and the Cosmos ecosystem, Nomic allows users to bring BTC liquidity into the IBC-enabled network. This integration empowers Bitcoin holders to participate in decentralized finance (DeFi) activities without compromising security or control.
• IBC Compatibility: Nomic's nBTC token is fully compatible with the Inter-Blockchain Communication (IBC) protocol, enabling cross-chain transfers and usage in various Cosmos-based DeFi platforms, including Osmosis and Kujira.
• 1:1 Bitcoin Backing with Full Transparency: Each nBTC token is backed by an equivalent amount of BTC in Nomic's decentralized reserve, providing a secure and transparent mechanism for Bitcoin tokenization.
• Enhanced Security Features: Nomic incorporates robust security mechanisms such as high-threshold multisig wallets, emergency disbursal processes, and circuit breakers to protect user funds from misuse or systemic risks.
• High-Performance Framework: Built using Orga, a custom blockchain application framework in Rust, Nomic achieves high performance, stability, and scalability, making it suitable for seamless Bitcoin integration.
• Open-Source and Community-Driven: Nomic's codebase is open-source, promoting transparency and enabling community contributions to enhance the protocol and expand its ecosystem.

Nomic Staking FAQ

How much can I make staking NOM?

The return from staking NOM varies based on the network's overall staking participation, real yield, and specific validator commission

How do I receive my NOM rewards?

NOM rewards need to be claimed. Visit the Nomic staking dashboard to claim your staking rewards

When can I start earning rewards with NOM?

You can start earning staking rewards once your tokens are successfully delegated to a validator

Can I sell NOM while it is locked up?

Staked NOM tokens cannot be sold, they need to be unstaked first. The unstaking period for NOM is 7 days

What are the risks around staking NOM?

Staking NOM comes with risks like slashing (penalty for the validator), price volatility, and liquidity risk (inability to sell during the lock-up period)

What consensus algorithm does Nomic use?

Nomic is a blockchain built using Cosmos SDK and Tendermint

What are the tokenomics of NOM?

Read all about NOM tokenomics here