1.Why should I stake my Tezos?
If token holders do not delegate their tokens to the baker for staking rewards, they will be diluted by the targeted ~5.5 % annual inflation.
2. Who is the delegator of the network?
Delegator is the token holder who delegates XTZ tokens to the baker for staking rewards.
3. Who is the baker of the network?
Baker is the validator in the Tezos blockchain. Like the Bitcoin miners, Tezos bakers run a full-node to maintain the network.
Bakers produce new blocks in the Tezos blockchain and get rewarded with additional XTZ tokens in that process. At the same time, they participate in block validation to avoid other bakers’ misbehavior.
4. Relevant baker terms
- Fee. The fee, which varies by the baker, will be deducted from the staking rewards.
- Rewards Schedule. The period this baker set to pay out staking rewards.
- Accepts Delegation. The number of XTZ tokens already delegated by users compared to the capacity of how much this baker can accept.
- Security deposit. The amount of XTZ tokens this baker is blocking to be able to receive delegations.
- Yield. The annual percentage yield you can get by staking your XTZ tokens to the baker.
5. How much can I earn from staking my XTZ tokens?
The staking rewards come from two parts, namely the rewards the baker gets from baking a new block and endorsing a block baked by others.
6. Is Tezos staking(delegating) safe？
You can transfer your XTZ tokens at any time while they are staked and they are safe from any misbehavior of the baker. However, if the baker misbehaves, such as double signing or frequently being offline, the baker will not get any rewards and thus also will not pay out any rewards to their delegators. In order to avoid risks of losing potential rewards, please carefully select qualified validators.
7. Does the baker charge a fee?
Yes. The fee is the expense ratio a baker charges from the rewards amount for the services provided.
8. Can I choose the amount I want to stake?
When you stake your XTZ tokens, you will stake all of your Tezos balance by default, so you can’t choose the amount of XTZ tokens to stake.
9. When will the delegating take effect?
Delegating will take effect immediately. The baker will be able to bake or endorse with the delegated XTZ after 7 cycles (about 20 days). The rewards from the baking / endorsing will be paid out by the blockchain to the baker another 5 cycles later. The payout from the bakers to their delegators is not automatically done by the blockchain, but by each baker itself according to their own payout schedules.
10. When will I get rewards?
The Tezos blockchain will calculate your rewards after 7 cycles. And the rewards are frozen with the baker’s security deposit for another 5 cycles to mature. After receiving the rewards, the baker will pay it out to delegators according to their payment schedule.
In order to attract more users to delegate, some bakers will pay out the rewards in advance from their own funds, so the specific payment time varies by the baker.
11. Is my balance spendable while it's staked?
The tokens you delegated are not locked or frozen. You can spend them at any time and without any delay.
12. Can I redelegate?
Yes, you can relegate at any time. After redelegation, the rewards will be recalculated.
13. When can I redeem my XTZ tokens?
Delegated XTZ can be redeemed at any time, the principal will be credited immediately. You will receive the reward according to the payout schedule after 12 cycles (about 36 days).