Staking by Delegation of the AVAX Token in the Avalanche Wallet
Find out how you can earn AVAX rewards by staking by delegating your AVAX tokens using the Avalanche wallet.
Updated January 7, 2021.
Introduction to Staking
Staking is a natural mechanism for participating in an open network and offers a direct economic argument: the likelihood of an attack’s success is directly proportional to a well-defined monetary cost function. Staking nodes are economically motivated to act virtuously and avoid behavior that could damage their stake’s value.
A node that wants to enter the network can do so freely, first placing and blocking a stake that cannot be moved for a defined period of time determined by the token holder. Once accepted, a stake cannot be reversed or unlocked to ensure that nodes share the same stable view of the network. Even better, for both the token holder and the network, this stake does not incur additional maintenance costs.
Unlike other systems that also offer a proof-of-stake (PoS) mechanism, AVAX does not use a cut and therefore the entire stake is returned when the stake period ends.
With Avalanche, staking tokens are never at risk of a network failure.
How to Stake AVAX Through Your Avalanche Wallet
The AVAX token holder can participate in the staking of the primary network as a delegate using the Avalanche Wallet.
Delegator
A delegator is an AVAX token holder, who wants to participate in staking, but chooses to trust an existing validation node through delegation . Delegations are initiated through a special “addDelegator” transaction issued to the Platform Chain (P-Chain) which contains the following:
- Node ID (chosen validator node)
- Start & End Time (start and end date and time)
- Reward Address (address of your Avalanche wallet where the delegation staking rewards will be sent)
Check the details of the parameters related to the delegation of AVAX tokens below:
- ID node: A Node unique ID derived from staker certificate of each individual node
- Start time: The date and time when a staking delegate is activated
- End time: The date and time when the delegator’s staking is completed
- Delegation fee: The delegation fee is specified by each validator as it joins the Avalanche network. The delegator pays a delegation fee to the validator to which he has delegated his AVAX tokens.
- Reward address: destination address for the staking rewards accumulated over the staking period.
Technical Data on Delegation
- The minimum value for staking by delegation is 25 AVAX
- The minimum time for staking by delegation is 2 weeks
- The maximum time for staking by delegation is 1 year
- The minimum rate of delegation commission is 2%
- The maximum rate of delegation commission is 10%
Learn more about staking by clicking here.
It’s Time to Stake by Delegation!
In view of the above, you need to have, at least, 25,001 AVAX in your Avalanche wallet for staking by delegation, as there is a fee of 0.001 AVAX for the transfer transaction from your X-CHAIN address to your P-CHAIN address.
If you do not have to purchase the desired quantity of AVAX tokens on the exchange of your choice. Check the list of exchanges below:
Did You Create Your Avalanche Wallet?
No, then create your Avalanche wallet by clicking on the image below:
With your Avalanche wallet, access it by clicking on the image below:
There are four options for accessing your Avalanche wallet. Choose one of the four options above.
In this example, we chose the MNEMONIC KEY PHASE option.
Insert your MNEMONIC KEY PHASE in the appropriate field.
Access your Avalanche wallet.
Now click on “Earn”.
After clicking on “Earn” you will be informed that you can earn more AVAX tokens by staking your AVAX tokens from your Avalanche wallet.
To do this, you must transfer your AVAX tokens from your X-CHAIN address to your P-CHAIN address to stake the AVAX tokens in your Avalanche wallet. Bearing in mind that you need to have at least 25,001 AVAX in your Avalanche wallet for staking by delegation, as there is a fee of 0.001 AVAX for the transfer transaction from your X-CHAIN address to your P-CHAIN address.
To make this transfer, in “Cross Chain Transfer”, click on the “TRANSFER” button.
Enter in “Value Transfer”, at least, 25 AVAX and then click on the “CONFIRM” button.
Then click on the “TRANSFER” button.
Then the confirmation screen will appear that the transfer between the chains (from X-CHAIN to P-CHAIN) has been successfully completed.
Now click on the “TRANSFER” button and then click on the “EARN.TRANSFER.SUCCESS.AGAIN” button.
Click on “Earn” and then, to delegate your AVAX tokens, click on the“ ADD DELEGATE ”button.
In “Search the Node ID” enter the Node ID below:
NodeID-B3zDh2ziKy9QMtYYwH4G9WwuyoPvCXdzU
After entering the
NodeID-B3zDh2ziKy9QMtYYwH4G9WwuyoPvCXdzU
click on the “Select” button.
Now fill in the following fields:
Staking Period
Time period in which your AVAX tokens will be blocked for staking.
Enter the data below:
Start Date and Time
The start date must be in the future.
End Date and Time
The end date must be after the start.
Stakingt Value
Choose from at least 25 AVAX to do the staking by delegation.
MAX
enter at least 25
AVAX
Reward Address
Address of your Avalanche wallet where the staking rewards for delegation will be sent, which can be “Use this wallet”.
Now click on the “CONFIRM” button.
Check the data and, finally, click on the “SEND” button.
You Are Delegating!
Your AVAX tokens are blocked for delegation staking until the end of the betting period.
You will receive your blocked AVAX tokens plus the AVAX token reward as soon as your betting period ends.
Estimated Rewards
If you want to view the AVAX token reward estimate, click on the “VIEW REWARDS” button.
About the Avalanche
Avalanche é a plataforma de contratos inteligentes mais rápida do setor de blockchain, medida pelo tempo até a finalização, e tem o maior número de Validadores garantindo sua atividade de qualquer protocolo de prova de participação. Avalanche é incrivelmente rápido, de baixo custo e verde. Qualquer aplicativo habilitado para contrato inteligente pode superar sua concorrência implantando no Avalanche. Não acredita? Experimente o Avalanche hoje.
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About Ava Labs
Ava Labs simplifies the launch of financial applications using blockchain technology — with highly scalable and efficient networks, customizable public and private blockchains, the ability to create any digital asset, and more. We are empowering people to build an open, simple and democratic Internet of finance.
Ava Labs was founded by Cornell computer scientists who brought in Wall Street talent to execute their vision. The Company received funding from key investors such as Andreessen Horowitz, Initialized Capital, Galaxy Digital, Bitmain and Polychain Capital, with angel investments from Balaji Srinivasan and Naval Ravikant. Learn more by visiting www.avalabs.org
Legal Notice
“This article is for informational purposes only and is not an investment recommendation, the cryptocurrency market is quite volatile and you should research and decide for yourself what to invest in, especially in high risk markets.”
