Can Validators Seize Staked Tokens?

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lonepixelHero Member
Posts: 9 · Reputation: 3167
#1Aug 20, 2017, 07:13 PM
Hey guys, Is it true that after staking, a validator can take your tokens if there are issues like sanctions? Will they just take our assets after we stake them?
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SwiftForkMember
Posts: 250 · Reputation: 145
#2Aug 21, 2017, 11:30 AM
Read the rules before staking. If you're using a noncustodial wallet, validators don’t get full control over your tokens. Just make sure to check the protocol's guidelines.
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#3Aug 21, 2017, 03:13 PM
From what I know, that shouldn't happen. Your funds aren't transferred to the validator. Unless you’re using a centralized service, I doubt they do any AML checks.
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#4Aug 21, 2017, 08:36 PM
There are different staking types but in decentralized networks, validators can’t seize your coins. The real risk lies with where you deposit your tokens. If a smart contract is controlled by a project, then they could potentially seize it.
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#5Aug 22, 2017, 10:36 AM
In delegated proof of stake, validators don’t control your funds at all. They just get your voting power. You could lose funds if a validator gets slashed, but that’s not really a thing with Solana or Hyperliquid.
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alt_forkMember
Posts: 228 · Reputation: 236
#6Aug 23, 2017, 12:38 PM
If you break AML rules, validators can’t take your tokens. Your wallet might get blacklisted and you can’t send your coins, but they’re still yours. Just keep in mind with stablecoins, the issuer might freeze your balance.
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greg2015Legendary
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#7Aug 23, 2017, 05:00 PM
Not sure, but I think it depends on the wallet where you staked. If there's a government order, maybe they can freeze it. What specific validator are you worried about?
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fork_maxiNewbie
Posts: 17 · Reputation: 28
#8Aug 23, 2017, 11:17 PM
In noncustodial staking, validators can't take your funds. When you stake from a self-custodial wallet, it stays under the network's protocol. If a validator acts up, you won’t earn rewards, but they can't take your coins. But with exchanges, they have the power to freeze.
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max365Newbie
Posts: 234 · Reputation: 20
#9Aug 24, 2017, 04:14 AM
Good point, there might be conditions in your staking contract that you can't ignore. Always read the fine print before committing. If you're in a restricted area, the pool provider should inform you about any AML laws.
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#10Aug 24, 2017, 02:57 PM
It really depends on where you stake. If it’s a centralized platform, they can seize your coins because they control the staking. But if you stake directly with a validator, they can’t take your tokens unless you sent them over.
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