Tezos staking on Stake DAO
We are excited to announce that Tezos delegation is now live on Stake DAO. Users can now passively earn staking rewards using their XTZ to help secure the Tezos network.
What is Tezos?
Tezos is a distributed smart contract blockchain with a self-amending consensus mechanism, Delegated Proof of Stake (dPoS). This mechanism is responsible for the blockchain’s governance structure.
As part of dPoS, token holders can delegate their Tezos holdings to validators securing the network, and in return earn the fees generated, minus the validator’s commission. On Tezos, these validators are called Bakers.
Stake DAO has incorporated the Tezos Baker “HotStake”. To delegate XTZ on Stake DAO using a Ledger or Temple wallet, please follow the tutorials below.
If you would like to know more about the technical mechanics of Tezos and staking, please read this medium post.
How to delegate your Tezos through Stake DAO.
Before you start:
- Ensure that you are running the latest software for your wallet.
- Ensure that you have funded your wallet with Tezos
- Head over to https://tezos.stakedao.org
Step 1. Connect your wallet
Connect to Web 3 using your wallet of choice, if you are using a software wallet such as Temple please click the button on the left, alternatively if you are using a Ledger wallet click the button on the right.
Step 2. Delegate your tokens
You will see this tab after you connect which will provide an account overview. Please check that you have connected the correct wallet and that you intend to delegate all of these tokens for staking.
Now click on Stake.
On this screen you can see your expected APR and rewards. Click Stake to delegate your XTZ.
Please note that the figures displayed here will change overtime.
If you are using a software wallet, verify that the details in the pop up displayed are correct and press confirm.
If you are using a Ledger wallet, verify all delegation details on your Ledger device.
- Connect and unlock your Ledger device. Open the Tezos Wallet app.
- Verify that all operation details are correct. If it’s a custom validator, carefully verify that the validator address (Delegate) is exactly as provided by the validator.
- Press both buttons to Accept the delegation or choose Reject to cancel.
Congratulations, your XTZ are now delegated to our validator and will start earning you rewards!
The delegation operation is signed and broadcasted to the network for confirmation. You should start receiving your first rewards after an initial period of about 40 days. (see the FAQ section below for more information).
How much can I earn from delegating my tokens?
The current yield on Tezos is 5.64%, but this rate does fluctuate. You can find the latest yield on StakingRewards.
We take a 10% operation fee, therefore, delegators who delegate to the Stake DAO Baker will receive 90% of the generated rewards.
Are there any risks associated with bonding my tokens?
No, Tezos does not penalise delegators if the validators go rogue. However, if a validator misbehaves, it will lose the right to participate on the network, and the delegator will also be affected as it will not earn rewards anymore. This is why it is important to delegate to a reliable Baker like HotStake.
Can I un-delegate my tokens?
You are free to move your delegated tokens anytime, there are no lock up periods with our delegation services. To un-delegate, log in to your Tezos wallet and send tokens to your desired destination.
When will I receive my first payout?
You will start accumulating rewards as soon as you delegate your tokens to our baker. However, to protect Tezos from attacks, rewards are paid with a 12 round delay.
For example, if you start delegating your token at round 100, you will earn your rewards from round 100 at round 112, then you will earn your reward from round 101 at round 113, and so on…
Note: If you decide to un-delegate your tokens, you will still receive all your unpaid rewards from us.
For example: let’s say you had bonded your XTZ with us from round 100, and decided to un-bond your XTZ at round 115.
When you un-bond, you would only have received your rewards from:
- round 100 (paid at 112)
- round 101 (paid at 113)
- round 102 (paid at 114)
- round 103 (paid at 115)
but we would still owe you the rewards from 104 to 115! These will be paid to your address with the same 12 round delay, and you would have received all owed rewards by round 127.
Can I continue to use my pre-Babylon KT address?
Yes, all pre-Babylon Upgrade KT staking addresses will continue to function as expected. Simply leave your funds as they currently are and you will continue to receive your XTZ rewards.
Can’t transfer XTZ from your software wallet?
Following the Babylon Upgrade a number of wallets require upgrade. Please ensure that all desktop or mobile wallet software is upgraded to the latest software version. Additionally, if you experience problems interfacing your Trezor with a software wallet, please ensure that you have installed the latest Trezor firmware update (November 6, 2019).
Can’t transfer XTZ even though all software is updated?
In order to send your XTZ from an old KT staking address to a new TZ address, the new TZ address must have a minimum of 0.002 TEZ in the balance to cover network fees.
Developer documentation is available online at 🔗 https://tezos.gitlab.io/ and is automatically generated from the master branch.
All development happens on GitLab at 🔗 https://gitlab.com/tezos/tezos