Please be aware that there are risks when you stake your tokens.
Read The Risks of Staking to learn more.
Cosmos is a network of independent blockchains connected by the Cosmos Hub, a proof-of-stake (PoS) blockchain based on Tendermint, a byzantine fault tolerant (BFT) consensus protocol.
ATOM is the native and only staking token of the Cosmos Hub. ATOMs represent the right to participate in consensus (vote, validate or delegate) for the Hub and earn inflationary ATOM block rewards and transaction fees in exchange.
Cosmos Hub validators participate in consensus by broadcasting cryptographic signatures, or votes, to commit blocks. Tendermint requires a fixed known set of validators, where each validator is identified by their public key. Validators attempt to come to consensus one block at a time, where a block is a list of transactions.
Delegating is when you bond your tokens to a validator and earn rewards from that validator. Block rewards are paid to validators and delegators in newly issued (inflationary) ATOM tokens as an incentive for staking.
To avoid confusion with the terminologies, the delegation process is termed as Staking, as this is the generally accepted term by most users.
When you stake your tokens, rewards are generated automatically. As soon as you unstake your tokens, they remain in a locked state for 21 additional days. During the 21-day period, there are no more rewards gained and the tokens cannot be moved yet.
New atoms are created every block and distributed to validators and delegators participating in the consensus process. This provides an incentive to atom holders to not just passively hold their tokens in wallets, but to put them at risk in order to secure the network. The number of new atoms created per block is variable and depends on the percentage of the atom supply that is staked in the network.
You can go to StakingRewards’ ATOM Staking Calculator to find out the potential rewards.
Get ATOM from exchanges and deposit it to your Cosmos Wallet. Open it up to confirm that your balance is showing correctly. Alternatively, from the main wallet screen go to the Finance tab to see all available tokens that can be staked on your Trust Wallet. You will see here Cosmos (ATOM), tap on it to go directly to the Cosmos Wallet.
If you do not see ATOM on your wallet, Tap the “+” sign on the upper right and search for ATOM, then use the toggle to add the token.
Tap on More to access the Staking Menu. You will see here the following options:
- Stake Details - View more information about staking Cosmos and your current staking status.
- Stake - This will take you to the initial staking screen.
- Unstake - Go here if you want to unstake your tokens and stop getting rewards.
- Claim Rewards - Claim the generated rewards via staking.
To start the staking process, tap on Stake.
Enter the amount you want to stake or tap on Max to select all tokens. Minimum amount is 0.01 ATOM . You need to have some Available tokens to pay for the fees, which is at least 0.001 ATOM. Chose your desired Validator, then tap on Next.
Before you continue, please be advised of the following:
- Your ATOM will be locked, and you will start generating rewards.
- You can “Unstake” at anytime, but the unstaking process takes 21 days.
- Once unstaking is done, that is the time you can move/transfer your ATOM tokens.
Review the transaction details. Tap on Send when you are ready to proceed,.
The screen will automatically go back to the ATOM wallet. A Pending message will appear while the network confirms the transaction.
Once the staking process is complete, you can verify the results by tapping on More and then tap on Stake Details. Congratulations, you are now staking your ATOM tokens.
You can also view your staking status by going to this explorer: https://www.mintscan.io and then do a search for your ATOM address.
- Cosmos / ATOM Delegation Guide. The Cosmos Hub MainNet is officially… | by Staked | Coinmonks | Medium