How To Stake ATOM
The Cosmos Hub was the first network to launch within the Cosmos Ecosystem, aiming to foster Interoperability for all the sovereign application-specific chains (app-chains) to thrive. Like all other Cosmos-based networks, the Cosmos Hub is built upon the Cosmos-SDK which contains the CometBFT consensus engine and the Inter Blockchain Communication Protocol (IBC). The consensus mechanism is one of Proof-Of-Stake (PoS) and is therefore secured by staking the native token of the Cosmos Hub, ATOM.
Why Stake on Cosmos Hub?
Staking tokens serve as a way for a token holder to contribute to the overall security of the network. In return for providing your tokens as a means of economic security for the network, every staker is eligible to receive rewards from the network’s inflation. Inflation on a network is a means to incentivize token holders to stake to avoid the possibility of getting diluted.
Staking your tokens grants the holder the right to participate in the network’s governance system. For example, an ATOM staker is eligible to participate in all of the governance votes put up on the Cosmos Hub (voting power is assigned according to your stake divided by the total stake). Governance is a powerful incentive for those token holders who wish to help shape the future of the Cosmos Hub. As we have seen, the Cosmos Hub is a vibrant ecosystem where every voice matters.
Ways of Staking
A token holder has two main routes by which they can go about staking.
One of the methods is via a CEX (Centralised Exchange). Some exchanges offer staking services within their platform. Such an example is Binance which allows a user on their platform holding ATOM to lock their tokens for a specified amount of time and earn rewards for locking in their tokens.
Coinbase and Kraken also offer in-house staking to users on those platforms.
The other method, known as ‘Native Staking’ happens through wallets that directly connect to the chain without an intermediary. This guide will focus on Native Staking.
Staking through Keplr
Keplr, developed by Chainapsis, is the leading wallet for the Interchain. To stake ATOM, you will need to ensure that your Keplr wallet is set up correctly. For a guide on that please follow this link.
Once the wallet has been initiated, the first step to Staking (once you have the tokens in your wallet) is to head over to the ‘wallet.keplr.app’ webpage. This is the main dashboard for your Interchain Portfolio including Staking.
To get started on Staking, click on the Stake button on the left-hand side of the screen (highlighted in red)
Once you hit the Stake button, your screen will look like the one below. This is where you can see your available balance and how much you are staking from every chain. The scope of this guide is to cover Staking for the Cosmos Hub so we will ignore all of the other chains.
In the search bar (or looking manually) select the ‘Cosmos Hub’ and click on it.
After clicking on the Cosmos Hub, you will be brought to Step 2 of the process which is to ‘Select Validator’. The Cosmos Hub has 175 active validators who offer staking services with a varying commission rate and other benefits.
Our guide will showcase how to delegate your stake to our Validator ‘Simply Staking’ which runs off our hardware based in Malta and is monitored 24×7 to ensure our delegators can rest easy.
Once Simply Staking is found, left-click on it to move on to the next step.
The next stage and final stage is to input the amount of ATOM you wish to stake with Simply Staking (or the validator of your choice).
Once you have determined your stake, click on the ‘Stake’ button.
After hitting the ‘Stake’ button you will be prompted to Approve a TX on the Keplr wallet. Click Approve when you are ready (if you have a hardware device, make sure that it is unlocked with the Cosmos App open before clicking Approve).
That is all! You are now staking ATOM with Simply Staking allowing you to earn roughly 15% per year (based on current statistics). Besides delegating with us, you can simply stake and secure your assets with the Ledger wallet.
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This article is provided for informational purposes only and is not intended as investment advice. Investing in cryptocurrencies carries significant risks and is highly speculative. The opinions and analyses presented do not reflect the official stance of any company or entity. We strongly advise consulting with a qualified financial professional before making any investment decisions. The author and publisher assume no liability for any actions taken based on the content of this article. Always conduct your own due diligence before investing.
