Tezos has recently undergone a major upgrade called Paris, significantly changing its staking functionality. Everstake is pleased to announce that we are now accepting XTZ stakers!
In this guide, we’ll delve into staking details and show you how to stake your XTZ with Everstake.
What is Tezos Staking?
The Paris proposal has introduced a new role in the Tezos ecosystem—the staker—alongside the existing roles of delegate (baker) and delegator. Previously, Tezos only offered delegation, where users could delegate their funds to a baker without freezing them. However, with the recent protocol upgrade, classic non-custodial staking has been introduced as a new option.
Non-custodial staking means that stakers contribute to their chosen baker’s security deposit without transferring custody of their funds. In return, they receive a proportional share of rewards, which are automatically distributed by the Tezos protocol. Unlike liquid delegation, staked funds are frozen and subject to slashing, reinforcing their role in enhancing network security.
In short, staked funds are incentivized more because they contribute more to network security by being actually at stake.
Benefits of Staking
To promote staking over liquid delegation, the Tezos protocol assigns weights to staked and delegated funds when calculating a delegate’s baking and voting powers. Staked funds, including those from stakers, are weighted twice as heavily as delegated funds. As a result, participants earn twice as many rewards from staking compared to delegation.
What is the difference between staking and delegating?
Delegation in Tezos Protocol, unlike staking, offers a way to contribute to a baker’s stake without freezing your funds or exposing them to the risk of slashing. However, delegated funds are only half as effective in earning baking rights, rewards, and governance voting. Additionally, rewards from delegated funds are paid to the baker, who then decides on their redistribution.
Staking Risks
Staking involves some key risks that you should be aware of:
- Double-Signing Risk
Staked funds are at risk if the chosen baker engages in double-signing, whether intentionally or by mistake. If double-signing occurs, slashing penalties will be applied to both the baker’s and the staker’s funds. Although slashing is infrequent, it has occurred a few times since the launch of Tezos.
- Overstaking Risk
Overstaking happens when a baker exceeds their accepted stake limit. It leads to reduced rewards for all stakers associated with that baker. Ensure that your chosen baker is open to additional stake and regularly check their status to avoid this issue.
How to stake XTZ with Everstake?
Follow this guide to easily stake your XTZ tokens using Everstake. This process is simple, even for beginners. Let’s get started!
Step 1: Access the Tezos Staking App
Connect your wallet via Staking App
Step 2: Choose Your Staking Option
- Browse the list of available wallets and choose one of them.
- If you don’t have a wallet, select a provider and create a new one.
Step 3: Delegate Your Tokens
To start staking, you first need to delegate your tokens. Click on Delegate.
Step 4: Continue Delegation Process
Read the provided information and click Continue.
Step 5: Select Everstake
- Enter Everstake’s tz address (tz1aRoaRhSpRYvFdyvgWLL6TGyRoGF51wDjM) or type “Everstake.”
- Click Select.
Step 6: Confirm Delegation
Click Delegate to confirm.
Step 7: Successful Delegation
- Your balance has been successfully delegated to Everstake.
- Click Continue to proceed to staking.
Step 8: Start Staking
Click on Stake.
Step 9: Review Risks and Terms
- Read about the risks and terms of staking.
- Click Continue.
Step 10: Enter Staking Amount
- Enter the amount of XTZ you wish to stake.
- Click Stake.
Step 11: Confirm Staking
Confirm the staking operation.
Step 12: Successful Staking
Congratulations! You have successfully staked your XTZ.
How to Unstake XTZ
Step 1: Initiate Unstake
Click on Unstake.
Step 2: Wait for Finalization
- After submitting an unstake request, the amount will become finalizable after approximately 10 days (4 cycles).
- Finalize unstaked balances to make them spendable.
Step 3: Enter Unstaking Amount
- Enter the amount you wish to unstake.
- Click Unstake.
Step 4: Confirm Unstaking
Confirm the unstaking operation.
Step 5: Unstake Requested
- You have successfully requested to unstake your XTZ.
- Wait for four cycles, and then finalize your balance.
Last words
Want to support the security and development of the Tezos network while learning how to receive rewards? Staking XTZ with Everstake is your go-to solution. The Tezos Staking App offers an intuitive interface, making the staking process simple and accessible, even for beginners.
Everstake, as a trusted validator, guarantees a safe and reliable staking experience. We’re here to support you every step of the way. Happy staking, and stay tuned for more guides!
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