The Reef network relies on a Nominated Proof of Stake mechanism to select validators, bond stakes, and maintain security. This structure supports low-cost transactions that are nearly instant, with finality typically reached within an average of 10 seconds.
Individuals lacking the technical ability to operate a Validator node can participate as Nominators. By choosing reliable validators and staking REEF, these users help secure the Reef Relay Chain.
Becoming a Validator demands technical knowledge, a stake of REEF, and continuous node operation—24 hours a day, 7 days a week, 365 days a year—to ensure high availability. If Validators fail to uphold performance or uptime standards, their stakes are slashed, and their Nominators face the same penalty.
When REEF is staked through nomination, it becomes ‘locked’ (bonded). Although Nominators can still receive new REEF into their wallets, they cannot transfer existing REEF out or use it to stake as a Validator. Nominators may stop staking by un-nominating at any time, a change that takes effect in the following era. However, un-nominating does not immediately release the funds; there is a 28-day unbonding period on Reef before the bonded assets can be transferred after an unbond transaction is issued.