Tezos recently introduced the Paris upgrade, which has reshaped its staking functionality by adding the option of direct staking alongside traditional delegation. Everstake is excited to support this upgrade, allowing XTZ holders to stake directly with us and enjoy optimized rewards.
In this guide, we’ll cover all you need to know about Tezos staking and offer a step-by-step walkthrough on how to stake your XTZ tokens using Temple Wallet.
What Is Tezos Staking?
The recent Paris upgrade has introduced an important addition to the Tezos ecosystem: the role of the staker. Previously, Tezos only supported delegation, where users could delegate their funds to a baker without freezing them.
In this updated system, the Tezos ecosystem includes three main roles:
- Staker: A role that allows users to actively stake their funds to support network security.
- Delegate (Baker): A participant who validates transactions and secures the network.
- Delegator: A user who delegates their funds to a baker without locking them.
Unlike delegation, Tezos staking requires that funds be frozen and subject to slashing (penalties if the baker misbehaves), adding an extra layer of security to the network.
Stakers directly contribute to their chosen baker’s security deposit while retaining full custody of their funds. The rewards are automatically distributed proportionally by the Tezos protocol, providing a higher incentive due to the increased risk and commitment involved.
Benefits of Staking with Everstake
To encourage staking over delegation, the Tezos protocol rewards staked funds with twice the weight compared to delegated funds, enhancing a staker’s voting power and baking rewards.
With Everstake, the staking fee is only 8% — a more competitive rate than the 15% delegation fee. This makes direct staking an efficient and rewarding option for those looking to maximize their XTZ.
Step-by-Step Guide to Staking TEZ with Temple Wallet
Step 1: Open the Temple Wallet
- Open the Temple Wallet extension and click on your TEZ balance to get started.
Step 2: Navigate to the Delegate & Stake Section
- Go to the Delegate & Stake section.
- Scroll down and click on Delegate & Stake.
Step 3: Choose a Baker for Delegation
- Before you can stake, you need to delegate your XTZ to a baker.
- Choose Everstake from the list provided.
- Once you’ve chosen a baker, click Delegate.
Step 4: Confirm the Delegation Transaction
- Review the transaction details, then confirm to complete the delegation.
- You should see a success message once the delegation is completed.
Step 5: Start Staking Your XTZ
- After delegation, the Stake button will appear in the main menu.
- Click on Stake TEZ to proceed.
Step 6: Enter the Amount to Stake
- Specify the amount of XTZ you want to stake.
- Click Stake to initiate the staking process.
Step 7: Confirm the Staking Transaction
- Confirm the transaction to finalize staking.
- A confirmation screen will show once the staking is successful.
How to Unstake Tezos (TEZ)
Step 1: Open the Manage Section
- Go to the main menu and click on Manage.
Step 2: Request Unstake
- In the Manage section, click on Request Unstake.
Step 3: Specify the Unstake Amount
Enter the amount you wish to unstake and click Unstake.
Step 4: Confirm the Unstake Transaction
- Confirm the transaction details to proceed with unstaking.
- Note that staked balances remain locked until manually unstaked and finalized. After requesting an unstake, you’ll need to wait 4 cycles (approximately 11 days) before you can finalize the unstaking process.
- Don’t forget to click Finalize once the waiting period is over.
Conclusion
Staking XTZ on Tezos through Temple Wallet is a straightforward way to get rewards while supporting network security. With Everstake, enjoy a lower staking fee of 8%, maximizing your tokens. Follow this guide and happy staking!
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