Avalanche is a Layer 1 protocol by Ava Labs that offers high-throughput, fast finality, and unprecedented decentralization.
Developers on Avalanche are able to launch their own public or private blockchains (called subnets), create and trade digital assets, and build scalable smart contracts and decentralized applications. Avalanche also allows Solidity-compatible dApps, allowing developers to easily launch Ethereum dApps that confirm transactions instantly and process thousands of transactions per second.
Ready to Stake? Here’s what you need to know:
Key Staking Considerations:
- Rewards are generated every block, distributed at the end of the staking timeframe
- There are no slashing penalties
- Inflation is deflationary based on staking participation
- Tokens are locked during the staking period
- A new delegation is required for compounding rewards
For this guide, we will be using the native wallet from Avalanche. This wallet is non-custodial, and requires the user to keep track of their own mnemonic phrase, password, and private key. To learn more about custody and best practices, check out our “What is Custody?” video.
Staking Avalanche: Step by step guide
To begin staking the native Avalanche tokens AVAX, first head over to https://wallet.avax.network/
Once you are on the official wallet site for Avalanche, click “CREATE NEW WALLET”
Creating a new wallet will promote you to generate a 24 word key phrase. This is a crucial step of the wallet creation process. Please ensure to backup your 24-word key phrase.
Once you have written down and properly backed up your 24 word key phrase, the Avalanche wallet creator will ask you to confirm a couple of words. Once confirmed, you have officially created a new Avalanche wallet.
Within the wallet interface, navigate over to the wallet address area in the top right corner. To load your Avalanche wallet with some AVAX tokens, simply send over AVAX to your wallet’s X-chain address.
As a note, it is very important to recognize which AVAX chain you are on. For context, there is the X-chain, P-chain, and C-chain. Be sure that when you are sending around your AVAX, you are on the correct chain.
When your funds arrive, they will be on Avalanche’s X-chain. In order to stake the tokens, the AVAX tokens need to be on the P-chain. Simply head down to the “Cross Chain” section on the left menu and transfer your tokens from the X-chain to the P-chain.
Once your AVAX is on the P-chain, you are now ready to stake. Head over to the “Earn” section on the left side menu, and then click “ADD DELEGATION”
Currently, Figment has no public Avalanche nodes. If you are interested in staking AVAX, please contact us to set up a dedicated Avalanche node.
Once you have a dedicated Avalanche node, you will input the associated NodeID on the page above to proceed with the staking process.
After clicking “ADD DELEGATION” you will be prompted to select a Node ID. Enter your unique Node ID into the search bar, and then click “Select” to delegate your tokens. You will then be prompted to confirm the transaction.
Once confirmed, congratulations! You are now officially staking AVAX tokens using the native avalanche wallet.
If you have any staking related questions, be sure to join our Staking Hub community.
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