Cosmos is commonly referred to as the “internet of blockchains” and contains an ecosystem of apps and services that exchange digital assets and data using the IBC (Inter-Blockchain Communication) protocol. Cosmos envisions that interoperable blockchain technology will help improve the world economy, making it more resilient, and transparent through decentralization.
The Cosmos Hub is the center of the Cosmos SDK ecosystem, an ecosystem with tools that make it easy to build new, custom-designed blockchains that are interoperable with others in the Cosmos network. The Cosmos Hub has broken the silos of blockchain economies by enabling assets and data to be transferred between blockchains. New Cosmos-based blockchains can be securely connected with other blockchains, increasing the rate of adoption and liquidity.
Ready to Stake? Here’s what you need to know:
Key Staking Considerations:
- Rewards are distributed automatically every block
- 5% slashing penalty for double signing, 0.01% slashing penalty for downtime
- 21 day unbonding period
- Tokens are locked during the staking period
- A new delegation is required for compounding rewards
For this guide, we will be using the Keplr wallet. This wallet is non-custodial, and requires the user to keep track of their own mnemonic phrase, and password. To learn more about custody and best practices, check out our “What is Custody?” video.
Staking Cosmos: Step by step guide
To begin staking Cosmos using the Keplr wallet, first head over to https://wallet.keplr.app/#/dashboard and install the kepler extension to your browser.
To install the Keplr extension, visit the Chrome store here.
Once installed, if you are creating a new wallet, Keplr will walk you through the wallet creation process.
Click “Create new account” and follow the instructions on screen.
Creating a new wallet will promote you to generate a 12 or 24 word key phrase. This is a crucial step of the wallet creation process. Please ensure to backup your 12-word or 24-word key phrase. Please also ensure that you backup your wallet password.
Once you have created a new wallet. You are now ready to use the Keplr wallet for sending, receiving, and staking assets.
To fund your wallet with ATOM, simply find your newly created ATOM address in the top left corner. Send over some ATOM to this address.
Once you have funded your wallet with ATOM, head down on the left hand side of the wallet where it says “Cosmos” and select the “Stake” option. Selecting the “Stake” option will bring up the view above, from this view, find the Figment validator.
Once you find the Figment validator and you are ready to stake your ATOM, press “Delegate”
Pressing “Delegate” will prompt you to enter how much ATOM you wish to stake. Enter the amount of ATOM you wish to stake, and press “Delegate”
Keep in mind that there is a 21 day unbonding period for ATOM.
Pressing “Delegate” will bring up a confirmation window within the Keplr wallet. If everything looks good, clicking “Approve” on the transaction will put your stake into action.
Once the transaction is confirmed, congratulations! You have successfully staked ATOM using the Keplr wallet.
To undelegate your atom, simply click “Manage” to the far right side, and then you will have the option to undelegate.