Go to https://wallet.atomex.me/ and connect your account
Go to https://wallet.atomex.me/ and connect your account
Enter the amount you want to stake and click on Delegate
Select Tezos network, click on Wallets and search for Chorus One bakery
Sign and submit the transaction
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On June 4th 2024, the Tezos blockchain successfully activated the Paris protocol upgrade proposal at block 5,726,209. This marks a new era for the chain, with significant effects on its Proof-of-Stake model in three key areas: Faster Finality, Higher Scalability, Stronger PoS.
We will focus this guide on the last point, and describe the new PoS mechanism brought by this upgrade, as it has a significant impact on the staking rewards that can be accrued on the blockchain.
For this upgrade, a new mechanism called “Adaptive Issuance and Staking“ has been implemented, which sets a new calendar for the inflation rewarded to bakers as well as a new staking system, adapting the economics of Tezos to fit better with real-world usage.
Adaptive Issuance means that staking rewards are no longer issued at a fixed (constant) rate, but instead will adjust depending on the share of total supply involved in staking. At the end of each cycle, the protocol adjusts reward values automatically, in order to bring the staked funds ratio towards a chosen target (50% in Paris).
Staker has also been introduced as a new role along with Adaptive Issuance. As a reminder, Tezos previously only allowed bakers (or delegators) to receive rewards through their assets. Like delegators, stakers delegate consensus and voting rights to a chosen baker. Unlike delegators, they can stake funds, which count towards their baker’s staking balance. Staked funds are frozen, and subject to slashing if the baker misbehaves.
With the new mechanism, staked funds are worth twice as much as delegated funds for the computation of consensus rights. Rewards arising from stakes are accrued automatically by the economic protocol for both bakers and stakers alike.
The other side of this coin is Adaptive Slashing. As stakers are subject to slashing if their chosen bakers misbehaves, the effect of penalties extends to more users. It becomes important then to differentiate between sporadic incidents arising from involuntary errors, from malicious, sustained attacks. This new mechanism then introduces changes in how penalties for double-signing consensus operations are computed, adapting to the fraction of the total attesting stake involved (more stake, higher penalties).
We recommend all delegators to familiarize themselves with the changes implemented in this Tezos Paris upgrade: Quick Start Guide for Adaptive Issuance.
On our side, Chorus One has implemented the Paris upgrade and is now accepting stakers. Through the previous guide, you will be able to complete the steps needed to start staking on Tezos and avoid any diminished rewards due to the new issuance model.
Please contact us if you have any issues.
About Chorus One
Chorus One is one of the biggest institutional staking providers globally, operating infrastructure for 60+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.
It’s quite simple to delegate purchased Tezos coins (XTZ). The main steps for delegating Tezos remain the same for most wallets
Let us see an example of each of these steps using Atomex wallet
Go to https://wallet.atomex.me/. Select My Wallets in case you already have an account otherwise click on CREATE NEW WALLET
If you are creating a new wallet then follow the onscreen instructions.
There you go! You have your Tezos wallet.
Press Wallets, select Tezos and press Delegate.
Upon the successful completion of your transaction, you will see the success message as below
Congratulations now you are baking your XTZ!!
After you click “Delegate”, the corresponding operation is sent to the blockchain and your delegation status becomes “Pending”. You can check that everything went well in Tezos explorer.
As you can see, your delegation is not applied immediately right after delegating. You need to wait a while before it’s confirmed. There are three stages of delegation:
This stage lasts 2 cycles = ~ 6 Days
1 cycle = 8192 blocks = 4096 minutes (each block every ~30 seconds) = ~2.8 days
In this stage you’ve successfully delegated, but your rights are not transferred to the baker yet. This delay is required to prevent the network from some forms of abuse. See more details in the Tezos documentation.
This stage lasts 5 cycles = ~ 14 Days
Your delegation is confirmed and the baker received future baking rights (to produce and endorse future blocks). So, now you know that you will definitely participate in Tezos staking in the near future and therefore you can estimate future staking rewards.
Now you are completely in Tezos staking and earning rewards. As you can see, you have to wait ~20 days after delegating to start staking.
All Tezos staking rewards are credited to the baker and not to delegators directly. Moreover, every time baker receives rewards, those rewards are frozen for the next 5 cycles (~14 days), so the baker can’t spend them. Only after ~14 days rewards are unfrozen and the baker can transfer it to someone else.
That’s why you can see that Tezos staking rewards for cycle N usually comes in cycle N + 6 (after ~17 days):
Every time the balance of a delegated account is changed (e.g. you raise additional funds, or withdraw funds, or even receive reward payments) you have to wait the same time as described above (37 or 23 days) until these changes are applied.
On March 1st 2021, we announced that we would be acquiring and operating Cryptium’s Tezos baker and their validator nodes on NEAR, Polkadot, and Kusama. This deal enabled the former Cryptium Labs team to focus on their new project Anoma, a private, asset-agnostic bartering network, while allowing their delegators to keep earning staking rewards with a reputable staking provider. Shortly after, we also agreed to take over Figment’s baker to help them focus on their DataHub and Learn projects on Tezos and to allow Figment’s former delegators to continue earning XTZ staking rewards. The acquisition of the Cryptium and Figment bakers mark our first entry into the Tezos ecosystem.
Tezos needs no introduction, it is a self-amending blockchain that launched as one of the world’s first Proof-of-Stake networks in 2018, establishing one of the first ecosystems of node operators. Tezos differentiates itself from other chains through a sophisticated on-chain governance mechanism and formal verification of smart contracts.
Amongst other things, Tezos was the first blockchain that introduced ‘Liquid Staking’. Somewhat ahead of its time, before Decentralised Finance (DeFi) had garnered adoption, delegators on Tezos were and are still now able to earn rewards whilst having the option to undelegate at any time and transfer their assets elsewhere (in comparison to most networks where an ‘unbonding’ period is necessary to undelegate assets). This also allows tokens in smart contracts (e.g. collateral in Kolibri, a Maker-esque stablecoin system on Tezos) to be delegated and earn staking rewards simultaneously! Tezos is no foreigner to introducing blockchain concepts ahead of its time, on-chain governance and an automated upgrade schedule were also foreign concepts until Tezos introduced these. Tezos has established itself time and time again as a secure network with the potential to be one of the most resilient and adaptable Proof-of-Stake networks. Given its reliability, it is no wonder that Tezos is chosen continuously by financial institutions for it’s fork-averseness, staking economics and finance-friendly smart contracts. We see great potential for the future of Tezos and we are glad to finally have the opportunity to run a validating node on this vibrant network.
There are 1,419,320 accounts using Tezos. The 1D transaction average over the past 30D is ~100,000 transactions per day (which is ~365,000,000 transactions per year annualised) and contract calls on Tezos are growing ~120% MoM (since May 2020).
Network activity on Tezos is impressive to say the least. We are glad to be supporting a thriving network that has seen sustained growth since its inception. We are looking forward to actively participating in Tezos governance to foster ecosystem development in the future.
Tezos has had two upgrades in the past three months, namingly Edo 2.0 and Florence. Edo 2.0 targeted the application layer of Tezos by introducing privacy-preserving smart contracts, more composable smart contracts using ‘tickets’ that represent values in relation to addresses (similar to derivatives) and an ‘adoption’ period to create a longer time-buffer between when voting ends for an upgrade and when it is executed on-chain. The Florence upgrade doubled the maximum operation size of smart contracts), optimised gas and changed intra-contract calling to a depth first execution model, all of which enable developers to develop more complex smart contracts with higher certainty the smart contracts will behave as expected.
Tezos Staking FAQ: https://chorus.one/networks/tezos
Staking Guide: Tezos Staking Guide for Beginners by Baking Bad, Ledger Guide to Staking Tezos (Ledger Only)
Wallets: Kukai, Ledger Live
Block Explorers: TzStats, TzKt
Staking Reward Calculator: Staking Rewards
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