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🛡️ Risks for Delegators

Delegating RNGY on Renergy Blockchain is generally safe and rewarding, but like all staking systems, it comes with certain risks. Understanding these risks helps you delegate confidently and make informed decisions.

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⚠️ 1. Slashing Risk

Validators may be penalized if they fail to meet protocol requirements or behave incorrectly, such as:

  • 💤 Downtime — being offline or missing block signatures

  • ⚔️ Double signing — signing conflicting blocks (a severe violation)

When slashing occurs, both the validator’s stake and delegated RNGY are partially reduced.

🔔 How to reduce risk: Delegate to validators with strong uptime, proven reliability, and a clean performance history.

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⚙️ 2. Validator Mismanagement

Validators are responsible for running infrastructure and maintaining uptime. Poorly operated validators may:

  • Earn fewer rewards

  • Get jailed due to downtime

  • Cause interruptions in reward distribution

🔔 How to reduce risk: Review validator metrics such as uptime, commission rate, governance activity, and community reputation before delegating.

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⏳ 3. Unbonding (Lock-Up) Period

When you choose to undelegate your RNGY, the tokens enter an unbonding period before becoming liquid again.

During this time:

  • 🔒 Tokens cannot be transferred or used

  • ⚠️ Tokens are still subject to slashing if the validator misbehaves

🔔 How to reduce risk: Plan undelegation ahead of time and account for the lock-up duration in your strategy.

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📉 4. Variable Rewards

Staking rewards are not guaranteed and may fluctuate based on:

  • Validator performance

  • Network participation levels

  • Emission changes or halving events

  • Overall network activity

Returns can vary over time depending on these factors.

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🔐 5. Wallet & Security Risks

Like all crypto assets, RNGY is subject to external risks such as:

  • Phishing attacks

  • Compromised devices

  • Lost private keys or seed phrases

🔔 How to reduce risk: Use trusted wallets, secure your seed phrase offline, enable strong authentication, and avoid suspicious links or dApps.

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📝 Key Takeaways

Delegation is a powerful way to earn rewards and support the Renergy network—but it requires informed participation.

Always remember to:

  • ✅ Choose validators carefully

  • ⏳ Understand unbonding timelines

  • 🔐 Protect your wallet and private keys

Staying informed helps you stake safely, confidently, and responsibly within the Renergy ecosystem.

Previous🔁 Manage Your Delegation on RenergyNext🤝 Tips for New Delegators

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