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What is LUNA and how to stake it?

What is LUNA and how to stake it?

LUNA is the native staking token in Terra Protocol. The primary function of LUNA is to protect the integrity of Terra mechanisms by locking value within the Terra ecosystem through staking. The Terra network is based on the Delegated Proof-of-Stake consensus algorithm, where miners (validators) need to stake a native cryptocurrency LUNA to mine Terra transactions. The delegation mechanism allows anyone who wants to support the network and earn staking rewards to delegate to the chosen validator. Staking rewards are first distributed to validators who take a commission for providing their operations and then are withdrawn individually by delegators. 

If you want to learn more about Terra, read our Terra Ecosystem Overview: A Guide for Newcomers.

LUNA can exist in three states:

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Source: Terra Docs

  • Unbonded: tokens are not staked and can be freely transacted without any restrictions.
  • Bonded: tokens are staked and blocked by the network, they cannot be used for any other purpose, except staking that delegators get rewards for. At any time, LUNA tokens can be transferred to the Unbonding state.
  • Unbonding: tokens are instructed to be undelegated. Delegators no longer receive rewards and cannot complete transactions until the end of the unbonding period, which is 21 days.

Ready to stake with Everstake?

Everstake is a reliable staking provider trusted by more than 465,000 users from all over the world. Our highly experienced technical team supports the infrastructure that you can rely on. We use bare-metal servers distributed around the globe, have backup nodes for any emergencies, and dedicated DevOps monitoring the network 24/7.

By choosing Everstake as a validator, you get confidence that your assets are safe. High-performance servers, broadband channels, and advanced network topology allow us to show 100% uptime and provide continuous rewards. 

In order to stake LUNA you need to download the Terra Station app, the official desktop wallet for holding Terra assets, or check out the web version station.terra.money to use with the Ledger. More info on delegating LUNA using the Ledger hardware wallet can be found here. There are official binaries for Windows, MacOS, and Linux. Launch the Terra Station and follow the instructions on the screen to create a new wallet or use an existing one. 

Once the wallet is connected, and you have some LUNA, follow the steps below:

1. Go to the Stake tab.

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2. Type everstake in the search bar.

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3. Click on the everstakeone name and open the page with validator details. To delegate LUNA click on the Delegate button.

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4. Enter the amount you want to delegate. Make sure to leave enough coins to pay the fee for subsequent transactions. You can choose the coin you want to pay with for transaction fees in the drop-down list. 

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5. Enter the password for your wallet and press Submit.

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That’s it, congratulations! Now you are staking with Everstake. Later, on the validator page you will be able to see your rewards.

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If you have any additional questions, please check our FAQ page.

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