Staking makes reference to the action of depositing some tokens to contribute with the number of tokens as participants into some action, for example, for mining other crypto currencies.

By staking, you are contributing to the network and are able to earn rewards.

Some recommendations:

  • DYOR… in the end it’s nothing else than your assets at risk.
  • Avoid the first set of validators, that will only give more power and destroy decentralization.
    • Many projects airdrops will exclude your address if you delegate via exchanges or if you delegate to top validators participating in the projects.
      • Some networks like Sifchain have impossed a maximum validator voting power to help decentralize the network and improve stability.
  • By delegating to a validator you will increase its voting power and get a cut of the commissions they will get…
    • Beware of the commission and the max rate change… some people delegate to validators which can change from one day to the next one the commission rate in 50%.
  • Do not delegate to validators offering 0%1 commission…
  • Some validators like Merak, provide autocompounding of rewards via reStake, automating the task for you and also paying the claim + stake fees. Check for more info at reStake

Wallet is usually done via a wallet like Keplr on Cosmos, or via some web3 applications.

Auto-compound of rewards

Note that Merak does allow autocompounding of rewards (We cover your fees!) to maximize your rewards, to do so, visit the Validator page for the links for each network. Read more on the feature .

  1. Running a validator means watching over a system that helps securing the network, that has costs: hardware, software and human for maintenance and operations… having powerful validators offering 0% just means making it harder for other players to enter into the game, and being unfair. Some projects are starting to set, via governance that only commissions equal or over 5% will be accepted. ↩︎