Staking on the ELLIPAL - Complete knowledge on ATOM, XTZ, DOT, KSM staking

Staking is an alternative option for investors to passively earn income when they are not trading. Staking is the process of proof-of-stake (PoS) blockchains for holders to actively participate in transaction validation (similar to mining). Anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards. 

ATOM Staking

Inflation rate

COSMOS inflates ATOM according to the pledge ratio of the entire network, and the inflation ratio varies between 7% and 20%. If the system has only a few ATOMs used as pledges, the inflation rate will be as high as 20%. When the system pledge ratio reaches ⅔, the inflation ratio will be fixed at 7%.

Choosing the validator

The ELLIPAL wallet currently supports just one validator which is Hash Quark which is giving a 10% yield.

How much to delegate?

The amount to delegate should be at least 0.000001ATOM. (PS: The binding amount that can be entered is consistent with the base position, the base position of ATOM is 6 digits) 

When will I get my rewards?

The rewards take effect immediately and you will start to receive rewards after it takes effect.

How to Unstake and redeem my principle?

Staked ATOM can be unstaked at any time. After the unstaking operation is completed, it will take three weeks (21 days) to arrive back to the account, and no income will be generated during this period.

Note: Please redeem all the rewards before unstaking the principal; because after the entrusted principal is redeemed, the income generated will become 0, resulting in loss of income;

Redeeming my rewards

The rewards can be redeemed at any time, simply click the redeem button. 

What are the benefits of Staking ATOM?

ATOM additional issuance rewards: all tokens issued each year will be rewarded to users who are staking ATOM.

Transaction fee rewards: all transaction fees included in each block are also part of the income 

Risks

Staking ATOM to the validator is not completely risk-free. If the validator commits malicious acts during the operation, the ATOM of the validator and the delegator will be deducted as punishment. 

The validator will be punished if they do a double signing. The system will reduce the total stake amount of the validator and delegator (including the rewards obtained by staking) by 5% as a fine. After the double sign occurs, the ATOM entrusted to the node will be automatically unstaked and cannot be staked again, which means that the delegator will not receive any rewards during the redemption period.

If the validator goes offline: If the validator accounts for more than 95% of the unsigned blocks in the last 10,000 blocks, the system will reduce the total stake amount of the validator and the delegator (including the rewards from the stake) by 0.01% as a fine.   

 

XTZ Staking

Inflation rate

The Tezos network is expected to issue 5.51% of XTZ tokens each year.

Choosing the validator

The ELLIPAL wallet has only one validator for XTZ. 

How much to delegate?

Amount to stake = XTZ balance;

 

(PS: The balance must be greater than 0.26XTZ and staked amount cannot be modified by the user.)

After staking the user can transfer normally, the staked amount will be subtracted as much as the amount is transferred; the staked amount will be increased according to the amount received. 

When will I get my rewards?

New or replacement orders will take effect immediately. The XTZ staked by the user will only calculate the revenue after 7 cycles (19 days, 21 hours, and 52 minutes). The rewards will be distributed to the validator in 5 cycles (14 days, 5 hours, and 30 minutes) after it is generated. The validator will distribute the rewards to the principal according to the payment cycle" after receiving the rewards

How to Unstake and redeem my principle?

XTZ can be unstaked at any time, and the amount will be credited to the account in real-time. The rewards needs to wait for 5 cycles to arrive (actually depends on the validator's rewards payment cycle)

Users cannot customize how much to unstake as all will be unstaked. After unstaking is completed, the status of the funds changes from "bound" to "unbound".

Redeeming my rewards

XTZ rewards are automatically issued, and users do not need to click to receive them. (If the reward is not received, one is that the validator has not yet received revenue; the other is that there is revenue, but the validator has not yet issued it)

What are the benefits of Staking XTZ?

The staked XTZ rewards come from two parts, namely the rewards of the validator’s block production and the rewards of the confirmed block production.

Risks

XTZ staking is no escrow, so users who entrust XTZ to the validator will not lose the right to transfer money. If the validator misbehaves, such as double signatures and double block generation, the user’s entrusted tokens will not be penalized, but will lose the rewards for this cycle.

DOT Staking

Inflation rate

DOT inflation system setting: When the system stake rate is lower than 50%, the annual average return rate will be higher than 20%, which can encourage more DOT tokens to participate in the stake; on the contrary, when the system stake rate is higher than 50%, The average annual rate of return will be less than 20%, encouraging some stakers to withdraw.

To ensure network security, DOT will be inflated based on the stake rate of the entire network. According to the economic incentives set by the inflation system, the DOT token stake rate can be stabilized at 50%. Under this stake rate, the annual inflation is 10%.

Choosing the validator

The nominator can choose according to the validator’s rewards amount and rate of return. Users can choose up to 16 validators (choose at least 1).

How much to delegate?

Stake at least 1 DOT if this is the first time you are staking. If you unstake and leave 0 DOT behind, you will need to stake that 1 DOT again next time.

Redeeming my rewards

Users can actively claim rewards by clicking on the "claim rewards" button.

What are the benefits of Staking DOT?

Receiving staking rewards (DOT).

KSM Staking

Inflation rate

When the system stake rate is lower than 75%, the annual average return rate will be higher than 20%, which can encourage more KSM tokens to participate in the stake; on the contrary, when the system stake rate is higher than 75%, The average annual rate of return will be less than 20%, encouraging some stakers to withdraw.

Through economic incentives, the KSM token stake rate can be stabilized at 75%. Under this stake rate, the annual inflation is 10%. 

Choosing the validator

The nominator can choose according to the validator’s rewards amount and rate of return. Users can choose up to 16 validators (choose at least 1).

How much to delegate?

Stake at least 0.01 KSM if this is the first time you are staking. If you unstake and leave 0 KSM behind, you will need to stake that 0.01 KSM again next time.

When will I get my rewards?

The time from receiving rewards is 12 cycles (34 days, 3 hours, and 22 minutes) + validator's payment cycle. To attract users to stake, some validators will advance the rewards (no need to wait for the unlocking period of 5 cycles), so the specific rewards distribution time also depends on the validators.

How to Unstake and redeem my principle?

It takes 7 days. After 7 days, the fund status changes from "Unbound" to "Retrievable". At this time, click "Retrieve" to redeem the principal."

Redeeming my rewards

Users can actively claim rewards by clicking on the "claim rewards" button.

What are the benefits of Staking KSM?

Receiving staking rewards (KSM).

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