(Cosmos) ATOM Staking Guide

(Cosmos) ATOM Staking Guide

This guide will give you a comprehensive overview on Cosmos and how to stake your ATOM. The Cosmos ecosystem has been growing at a rapid pace, with ATOM stakers often being rewarded with Airdrops from projects launching in the ecosystem. You can find answers to the most frequently asked questions below, as well as a step-by-step guide on how to stake your ATOM through Steakwallet at the bottom of this post.

You can check the latest airdrops on our open source airdrops website here: https://airdrops.steakwallet.fi

Staking is the process of locking up a digital asset (ATOM) to provide economic security for a public blockchain. You can learn more about staking ATOM in its official documentation.

Please scroll down to the bottom of this article for the full Steakwallet staking guide, including a step-by-step walk through complete with screenshots.

What is Cosmos?

Cosmos dubs itself the "The Internet of Blockchains", as the project’s goal is to make blockchain technology less complex and difficult for developers through a more modular framework. This allows new projects on the Cosmos SDK to be built more easily using code blocks that already exist. In the long run, the hope is that this will result in complex applications being more straightforward to construct. The Interblockchain Communication protocol (IBC) was also established to make it easier for blockchain networks to communicate with each other, preventing fragmentation in the industry. Scalability is another priority, meaning substantially more transactions can be processed per second than more old-fashioned blockchains, like Bitcoin and Ethereum.

Cosmos’ origins can be dated back to 2014, when Tendermint, a core contributor to the network, was founded. In 2016, a white paper for Cosmos was published — and a token sale was held the following year. ATOM tokens are earned through a hybrid proof-of-stake algorithm, and they help to keep the Cosmos Hub, the project’s flagship blockchain, secure. This cryptocurrency also has a role in the network’s governance.

Why should I stake my ATOM?

Staking your ATOM helps secure the Proof-of-Stake (PoS) network. Further, most PoS blockchains are initially inflationary in nature, so staking your ATOM prevents you from getting inflated out of your position as you earn rewards for helping secure the network and validate transaction.

What happens when I stake my ATOM?

As Cosmos utilizes a Proof-of-Stake consensus mechanism, you can delegate an amount of ATOM you hold to a "validator", making you the "delegator". Validators on the Cosmos blockchain (and most other PoS blockchains) validate the network by approving transactions. The more ATOM a validator holds the more powerful they are and the more "vote" the have in the network, which allows them to validate more transactions, thus earning more rewards. By delegating your ATOM, you trust the selected validator to be a good network participant. From the earned rewards, the validator gives a certain percentage (stipulated by the network) back to the delegators that have delegated (staked) their ATOM to them.

That's how you earn rewards.

How much can I earn from staking my ATOM?

At the time this post was published, the APY (Annual Percentage Yield) was: 10.42%.

For the most up-to-date rewards rate, you can check the Steakwallet app or visit a website such as Staking Rewards.

What is the minimum amount of ATOM I can stake?

To stake ATOM, a minimum of 0.05 ATOM is required. This ensures you can stake and also pay the Cosmos network transaction fee. You should always make sure to have enough ATOM available to pay for network fees, as all blockchain interactions require them (such as sending a transaction, staking, unstaking, or interacting with any other dApps).

How do I stake my ATOM?

When you stake your ATOM, you are able to choose how much of your ATOM you want to delegate to the validator. You can stake any amount of ATOM, for which you immediately start accumulating rewards. You will not be able to use the staked ATOM for anything else or sell them during the period the ATOM are staked.

Make sure you have enough ATOM in your wallet to pay for network transaction fees.

Please note: You will need to manually claim your rewards and re-stake them to earn the maximum possible rewards. More on claiming your rewards below.

What Validator is my ATOM staked to?

Currently, if you stake your ATOM with Steakwallet your stake gets delegated to validators run by Figment. Figment is a reliable partner and one of the most trusted validator providers in the industry. We plan to offer more optionality in the future.

How do I unstake my ATOM?

When you unstake your ATOM, you can decide on the amount you want to unstake. Once you confirm the amount, your ATOM will now be "unbonding" from the validator. This process takes 21 days, during which your unstaked ATOM is not earning any rewards. When you unstake your ATOM, any unclaimed rewards you may have will be auto-claimed.

Please note: When you unstake ATOM from any given validator, you can unstake at most 7 times in a 21 day period. If you try more, the unstake will fail. You must wait for one of the previous unstaking entries to expire.

When will I start earning rewards?

When you start staking your ATOM and the delegation is confirmed, you will start earning rewards on the staked amount instantly!

How do I claim my staking rewards?

On the Cosmos network, you need to manually claim earned rewards. Unless you have enough ATOM to cover network fees for claiming your rewards, you will need to wait until you have earned enough ATOM to cover the network fee.

On Steakwallet, there is a "Claim Rewards" button right below your staked balance that shows your earned rewards available for claiming.

Does Steakwallet take a cut of my rewards or charge a fee?

No. Steakwallet never charges a fee on your staking rewards.

Is ATOM staking safe?

Given that you always maintain custody of your assets (as Steakwallet is non-custodial), you always remain in full control.

While staking ATOM is relatively safe, and while we work together with Figment as they are one of the most reliable validators in the industry, there's always a risk of slashing. If a slashable event happens, you can lose a portion of your staked ATOM. However, this has not happened on the Figment validator in all its years of existence.

There are two ways you can be slashed:

  1. If you delegate to a validator that is offline for over 20 hours (assuming a 7.22s block time), you will lose 0.01% of the tokens you have delegated to that validator.
  2. If you delegate to a validator that signs the same block twice with the same key, you will lose 5% of the tokens you have delegated to that validator.

Staking ATOM through Steakwallet: Step-by-Step Guide

Staking Semantics

Staking ATOM tokens is relatively straight forward. Once you stake your tokens, you immediately begin earning rewards. You'll be able to claim these rewards periodically, as they are not automatically added to your staked balance, so you must restake these rewards for compounding earnings.

When unstaking, there is a 21 day lockup period, after which you can withdraw your ATOM.

Key ATOM Staking Considerations:

  • Rewards are distributed daily
  • 0.01% penalty for soft slashing, 5% penalty for hard slashing
  • 10.42% reward rate (stay up to date on the Steakwallet app!)
  • 21 day unbonding period
  • New delegation required for compounding rewards
  • Leave a little ATOM leftover in your wallet for bonding and unbonding fees

For this guide, we will walk you through the steps of setting up your Steakwallet from scratch and then staking your ATOM. If you already set up your Steakwallet, you can scroll down to the staking section.

Steakwallet can be downloaded on iOS or Android. Steakwallet is a non-custodial wallet, and requires you to keep track of your own secret phrase (often also referred to as "mnemonic").

  • To begin staking with Steakwallet, you first need to download the wallet from either the iOS or Android app store onto your mobile device. Once downloaded, you can open the app and begin the setup process.
  • Start by creating your Steakwallet account, following the steps on the screens below. Simply create a new wallet, agree to the terms, and backup your 12 word phrase. It is extremely important that you backup your secret phrase. Be sure to write down and safely secure your wallet's 12 word backup phrase. This is the only way to recover your  wallet. Once you have created your wallet and backed up your 12 word phrase, you are ready to use Steakwallet.
  • Now that you're setup, welcome to the Steakwallet home screen. Here in our "Prime Yields" section you can find the best opportunities to put your money wor work and find many different tokens when you scroll down. From Yearn Vaults to our super simple native staking integrations.
  • Select Cosmos (ATOM) from the list and you'll get to the token details page showing you recent performance, your available balance, your staked balance, and if you scroll down further the Staking Info already discussed above.
  • Clicking "Receive" brings up your Cosmos address allowing you to deposit your ATOM.
  • Once you have funded your wallet with ATOM, head back to the staking section on the token details screen in your Steakwallet.
  • When you are ready to start staking, click “Stake”.
  • From here, select how much of your ATOM balance you wish to delegate. Important reminder: Be sure to leave some ATOM left over for delegating and undelegating fees. Select the amount of ATOM you wish to stake, click “Preview Stake”, and then confirm the stake on the next screen.
  • After waiting a couple of seconds for confirmation, your stake will be confirmed and you can view the staking transaction on the explorer. Congrats, you're now staking your ATOM through Steakwallet. If something went wrong, you'll receive an error screen.
  • Now, the Steakwallet’s token details screen will show what you are staking versus your available balance. Here, you can now see how much of your balance is staked versus available and you can re-stake rewards, or unstake tokens. Remember that if you unstake, your token will be unbonding for 21 days.
  • You'll also see a live view of how much rewards you've earned and can choose to claim them by simply clicking on "Claim" and then confirm by clikcing "Claim" again. Once you've successfully claimed your ATOM rewards you can stake them to compound your earnings.

More on Steakwallet

Steakwallet is a mobile-first, multi-chain, non-custodial wallet that allows users to easily stake tokens and earn rewards. Steakwallet can be downloaded on iOS or Android, allowing you to instantly secure, send, receive, and stake over 10 different cryptocurrency assets.

Being non-custodial, Steakwallet gives you full ownership of your assets and wallet private keys. With Steakwallet, you are always in control of your assets.

Steakwallet makes every part of the staking experience user friendly from delegation, rewards claiming, unbonding, and more.

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⚠️ Steakwallet should update automatically with every release. If it doesn't, you can manually update it by following the simple steps below. You can also download it based on the steps below:

iOS

  1. Go to Steakwallet on the Apple App Store
  2. Click the "Update" button on top right to update the app or "Download" if you have not yet downloaded the app
  3. Wait for the update/download to finish and voilá

Android

  1. Open the Google Play Store app Google Play
  2. At the top right, tap the profile icon
  3. Tap "Manage apps & device"; apps with an update available are labeled "Update available"
  4. Tap "Update"


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