ESP is the native token of Espresso, a purpose-built base layer for rollups. Like Ethereum, Espresso uses Proof of Stake (PoS) consensus to secure its network. Unlike Ethereum, Espresso was designed specifically to give rollups what they've always needed: fast finality, scalable data availability, optional decentralized sequencing, and crosschain composability.

ESP is a utility token. Its purpose is to secure and decentralize the infrastructure that rollups depend on. Staking your ESP directly contributes to that security while earning you rewards. Long-term stakers can earn up to 420% in additional boosted rewards.

How Staking Works

Espresso is a PoS network, secured by the ESP staked. Espresso's HotShot consensus protocol uses proof-of-stake to select the set of validator nodes that actively participate in consensus. The top 100 validator nodes as weighted by stake at any time make up the active consensus set.

Holders of ESP can use it to participate in consensus, either by operating a validator node or by delegating tokens to a validator.

Validators stake ESP and run a validator node to participate in HotShot, Espresso's consensus protocol. The Espresso Network stake table, which underlies HotShot consensus, is represented by an Ethereum contract at 0xCeF474D372B5b09dEfe2aF187bf17338Dc704451.

Token holders not interested in running their own node can delegate their ESP to a node operator to take part in securing the network in return for a share of staking rewards. Node operators can set their preferred commission rate, earning a share of rewards associated with tokens that have been delegated by others to their node. This creates a mutually beneficial arrangement: delegators earn rewards without running infrastructure, while validators gain more stake in consensus.

HotShot dynamically adjusts its active set of consensus nodes to match the top 100 validators by total stake at any time. By staking your ESP tokens, you can directly influence the quality and decentralization of nodes participating in Espresso.

Delegators can stake their ESP with validators to strengthen network security and earn a portion of protocol rewards. Most users choose to delegate their stake to a node operator rather than running their own validator. You can start earning right away through the Espresso Staking Dashboard.

Staking Reward Formula

Espresso's staking reward formula is Ethereum-inspired, in which the reward rate on staked tokens is inversely proportional to the square root of the proportion of tokens that are currently staked (albeit with a slightly higher reward rate compared to Ethereum).

The exact formula is:

$R(p) = \begin{cases} \frac{0.03}{\sqrt{2 \cdot 0.01}}, & 0 \le p \le 0.01 \ \frac{0.03}{\sqrt{2p}}, & 0.01 < p \le 1 \end{cases}$

where p is the proportion of total tokens staked and R(p) is the annual reward rate for staked tokens as a decimal (e.g., 0.05 = 5%).

This model has various advantages:

• There is an elastic incentive to stake when staking participation is low

• The reward rate gently tapers off as staking participation rises (in contrast to a reward rate that is inversely proportional to the proportion of tokens staked, i.e., fixed inflation schedule), so reward reductions are mild, mitigating sudden drops in validator revenue

• Meanwhile, the reward schedule still keeps inflation bounded

• The math is predictable and smooth, and it follows a battle-tested precedent set by Ethereum and other chains

If you received tokens through the airdrop and stake them for extended periods, you're also eligible for boosted rewards according to the schedule below.

The Boosted Rewards Program

The Espresso Foundation has allocated a dedicated portion of the initial ESP supply towards staking incentives, specifically allowing users that stake their airdrop allocation to earn up to 420% more in boosted rewards.

To be eligible for the boosted rewards, users will need to stake their airdrop within 14 days of claiming their airdrop allocation. Following this, allocations that remain staked will unlock boosts at set time intervals.

The following bonuses can be unlocked by staking for at least 3 months, 1 year, and 2 years:

Important: Note that boosted staking rewards are only applicable to tokens claimed through the airdrop claims portal at claim.espresso.foundation. Users that unstake more than 50% of their tokens prior to the aforementioned time periods will forfeit their boosted staking rewards. An exception is made if the validator a user delegated to takes their node offline. In this case, the user will have up to 14 days to delegate their tokens to a new validator to remain eligible for boosted rewards.

Claiming Your Boosted Rewards

Users that are eligible will be able to claim their boosted staking rewards through the rewards portal. The rewards will become claimable on three occasions:

• After staking for 3 months

• After staking for 1 year

• After staking for 2 years

The boosted staking rewards will remain claimable until 1 month after the third claim opens. The Espresso Foundation will send reminders via their official X account for stakers to claim their boosted staking rewards. You can follow for announcements regarding the rewards portal and claims on the official account and their blog.

ESP is the native token of Espresso, a purpose-built base layer for rollups. Like Ethereum, Espresso uses Proof of Stake (PoS) consensus to secure its network. Unlike Ethereum, Espresso was designed specifically to give rollups what they've always needed: fast finality, scalable data availability, optional decentralized sequencing, and crosschain composability.

ESP is a utility token. Its purpose is to secure and decentralize the infrastructure that rollups depend on. Staking your ESP directly contributes to that security while earning you rewards. Long-term stakers can earn up to 420% in additional boosted rewards.

How Staking Works

Espresso is a PoS network, secured by the ESP staked. Espresso's HotShot consensus protocol uses proof-of-stake to select the set of validator nodes that actively participate in consensus. The top 100 validator nodes as weighted by stake at any time make up the active consensus set.

Holders of ESP can use it to participate in consensus, either by operating a validator node or by delegating tokens to a validator.

Validators stake ESP and run a validator node to participate in HotShot, Espresso's consensus protocol. The Espresso Network stake table, which underlies HotShot consensus, is represented by an Ethereum contract at 0xCeF474D372B5b09dEfe2aF187bf17338Dc704451.

Token holders not interested in running their own node can delegate their ESP to a node operator to take part in securing the network in return for a share of staking rewards. Node operators can set their preferred commission rate, earning a share of rewards associated with tokens that have been delegated by others to their node. This creates a mutually beneficial arrangement: delegators earn rewards without running infrastructure, while validators gain more stake in consensus.

HotShot dynamically adjusts its active set of consensus nodes to match the top 100 validators by total stake at any time. By staking your ESP tokens, you can directly influence the quality and decentralization of nodes participating in Espresso.

Delegators can stake their ESP with validators to strengthen network security and earn a portion of protocol rewards. Most users choose to delegate their stake to a node operator rather than running their own validator. You can start earning right away through the Espresso Staking Dashboard.

Staking Reward Formula

Espresso's staking reward formula is Ethereum-inspired, in which the reward rate on staked tokens is inversely proportional to the square root of the proportion of tokens that are currently staked (albeit with a slightly higher reward rate compared to Ethereum).

The exact formula is:

$R(p) = \begin{cases} \frac{0.03}{\sqrt{2 \cdot 0.01}}, & 0 \le p \le 0.01 \ \frac{0.03}{\sqrt{2p}}, & 0.01 < p \le 1 \end{cases}$

where p is the proportion of total tokens staked and R(p) is the annual reward rate for staked tokens as a decimal (e.g., 0.05 = 5%).

This model has various advantages:

• There is an elastic incentive to stake when staking participation is low

• The reward rate gently tapers off as staking participation rises (in contrast to a reward rate that is inversely proportional to the proportion of tokens staked, i.e., fixed inflation schedule), so reward reductions are mild, mitigating sudden drops in validator revenue

• Meanwhile, the reward schedule still keeps inflation bounded

• The math is predictable and smooth, and it follows a battle-tested precedent set by Ethereum and other chains

If you received tokens through the airdrop and stake them for extended periods, you're also eligible for boosted rewards according to the schedule below.

The Boosted Rewards Program

The Espresso Foundation has allocated a dedicated portion of the initial ESP supply towards staking incentives, specifically allowing users that stake their airdrop allocation to earn up to 420% more in boosted rewards.

To be eligible for the boosted rewards, users will need to stake their airdrop within 14 days of claiming their airdrop allocation. Following this, allocations that remain staked will unlock boosts at set time intervals.

The following bonuses can be unlocked by staking for at least 3 months, 1 year, and 2 years:

Important: Note that boosted staking rewards are only applicable to tokens claimed through the airdrop claims portal at claim.espresso.foundation. Users that unstake more than 50% of their tokens prior to the aforementioned time periods will forfeit their boosted staking rewards. An exception is made if the validator a user delegated to takes their node offline. In this case, the user will have up to 14 days to delegate their tokens to a new validator to remain eligible for boosted rewards.

Claiming Your Boosted Rewards

Users that are eligible will be able to claim their boosted staking rewards through the rewards portal. The rewards will become claimable on three occasions:

• After staking for 3 months

• After staking for 1 year

• After staking for 2 years

The boosted staking rewards will remain claimable until 1 month after the third claim opens. The Espresso Foundation will send reminders via their official X account for stakers to claim their boosted staking rewards. You can follow for announcements regarding the rewards portal and claims on the official account and their blog.