Stargaze (STARS) Staking Guide

Stargaze (STARS) Staking Guide

This guide will give you a comprehensive overview of Stargaze and how to stake your STARS token. Stargaze is a Proof-of-Stake (PoS), Cosmos SDK based decentralized protocol focused on building a community-owned Interchain NFT marketplace. Using the inter blockchain communications protocol (IBC), Stargaze can dock onto and integrate with multiple blockchains from the Cosmos ecosystem (such as supporting the Juno smart contracts blockchain). This allows Stargaze  content creators to post content mintable as NFTs and buy/sell NFTs across integrated IBC protocols.

Stargaze is running an airdrop campaign that will be claimable beginning on January 17th 2022. You can check out the Steakwallet airdrop site for more info here.

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

Why should I stake my STARS?

Staking is the process of locking up a digital asset (STARS) to provide economic security for a public blockchain, therefore staking your STARS helps secure the PoS Stargaze network. Further, most PoS blockchains are initially inflationary in nature, so staking your STARS prevents you from getting inflated out of your position as you earn rewards for helping secure the network and validate transactions. Lastly, you can participate in network governance.

  • Secure the networkWith STARS, you have the power to contribute to the security and governance of Stargaze through staking and voting on governance proposals.
  • Earn rewardsWhen you stake to a validator, you are contributing to the security of the network and are rewarded with STARS through staking rewards.
  • Vote for the futureStaking STARS allows you to vote on governance proposals and contribute to making decisions on the future and direction of the network.

What happens when I stake my STARS?

As Stargaze utilizes a PoS consensus mechanism, you can delegate an amount of STARS you hold to a "validator", making you the "delegator". Validators on the Stargaze blockchain (and most other PoS blockchains) validate the network by approving transactions. The more STARS 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 STARS, 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 STARS to them.

That's how you earn rewards.

Note: STARS staking is different in that block rewards not only go to validators, but are also split between users.

How much can I earn from staking my STARS?

At the time this post was published, the APY (Annual Percentage Yield) for staking STARS is 123%.

For the most up-to-date rewards rate, you can check out the Steakwallet app.

What is the minimum amount of STARS I can stake?

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

How do I stake my STARS?

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

Make sure you have enough STARS 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.

Which validator is my STARS staked to?

Currently, if you stake your STARS 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 STARS?

When you unstake your STARS, you can decide on the amount you want to unstake. Once you confirm the amount, your STARS will now be "unbonding" from the validator. This process takes 14 days, during which your unstaked STARS is not earning any rewards. When you unstake your STARS, any unclaimed rewards you may have will be auto-claimed.

Please note: When you unstake STARS from any given validator, you can unstake at most 7 times in a 14 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 STARS and the delegation is confirmed, you will start earning rewards on the staked amount instantly!

How do I claim my staking rewards?

On Cosmos SDK based blockchains, you need to manually claim earned rewards. Unless you have enough STARS to cover network fees for claiming your rewards, you will need to wait until you have earned enough STARS 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 STARS staking safe?

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

While staking STARS is relatively safe, and while we work together with Figment (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 STARS.

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.‌

However, this is a very rare occurrence. Staking is one of the safest way to earn rewards in crypto.  


Staking STARS through Steakwallet: Step-by-Step Guide‌

Staking Semantics

Staking STARS 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 14 day lockup period, after which you can withdraw your STARS.

Key Stargaze (STATS) Staking Considerations:

  • Rewards are distributed daily
  • 0.01% penalty for soft slashing, 5% penalty for hard slashing
  • 123% reward rate (stay up to date via the Steakwallet app!)
  • 14 day unbonding period
  • New delegation required for compounding rewards
  • Leave a little STARS 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, followed by staking your STARS. 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 STARS 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 Stargaze address allowing you to deposit your STARS. ‌
  • Once you have funded your wallet with STARS, 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 STARS balance you wish to delegate. Important reminder: Be sure to leave some STARS left over for delegating and undelegating fees. Select the amount of STARS 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 STARS 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 14 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 STARS 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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