Changes to Terms of Service for Staking related to Plomin Hardfork
This article updates on Terms of Service in relation to Cardano staking that is needed due to the Plomin hardfork requiring voting to be able to withdraw rewards from staking.
We previously wrote about Chang Hardfork. The second phase of this called the Plomin hardfork allowed all governance entities to vote on governance actions. Of relevance to NBX staking through our platform is that for staking rewards to be able to be withdrawn the staking address needs to be delegated to a Delegated Representative (DRep) with a vote.
We at NBX believe that we should only delegate our vote to the abstain DRep (an automatic vote of abstain to governance actions through the protocol) on behalf of our customers so our customers who agree to our terms of service can continue to receive rewards. Customers who do not want us to vote abstain on their behalf can of course unstake and discontinue usage of our staking platform. Our reasoning for voting abstain is that we don't have a platform for our customers to individually vote and we cannot express all our customers will by delegating to a single DRep.
The new terms of service related to staking are as follows:
12 Staking Authorization, Voting Delegation, and Fees
By utilizing NBX's staking services, you grant NBX the right to stake assets held in custody on your behalf. You also agree that NBX may charge a staking fee, currently set at 10% of rewards, in addition to any transaction fees related to staking activities. Furthermore, you consent to NBX acting as your representative in governance voting associated with staked assets. NBX will cast an "abstain" vote on all governance matters, as we do not currently offer a platform that enables direct voting by customers. You may withdraw this consent by discontinuing the staking service.
