Keep Network: Guide to Staking KEEP
If you own KEEP tokens, you can participate in staking by either running a Keep node or by backing a node operator like Figment. The easiest and arguably the most secure way to stake will be to delegate to a professional node operator, and this is our guide to delegating.
Last updated: May 12, 2020
Note: we will update this guide to include instructions for bonding ETH
Staking KEEP is Easy
There are a few important things to note, the first being that you should work with your node operator before you try to stake. I’ve detailed these below so that you’re prepared to stake on the Keep mainnet.
Don’t let this guide overwhelm you! Most of this information will be extra if you’re our client, since we will personally guide you through the process to ensure that it is easy, secure, and that you know what to pay attention to.
If you’re interested in delegating to Figment, get in touch: email@example.com
Delegations take effect after 12 hours, after which they require 60 days to undelegate. If this is a new delegation, you will need to delegate a minimum of 100,000 KEEP tokens in order to participate. Our understanding is that this minimum will decrease to 10,000 KEEP over the next two years.
Contact us (firstname.lastname@example.org) and we will create a dedicated node for your delegation. Ideally at this time you should delegate the maximum number of KEEP that you are prepared to participate with, since there are restrictions on changing delegations. The more you delegate, the more you can expect to earn.
If you’re changing your delegation from a competing staking service, you’ll need to undelegate, which will take about 60 days for your KEEP tokens to be liquid. Then we will proceed the way we do for new delegations (ie. email@example.com and we’ll create a new node).
If you’re increasing the size of your delegation (with either existing funds or with new rewards), you will need Figment to run a new node for your delegation. This is where things get tricky. You’ll need to have more than the minimum KEEP delegation amount liquid in order to delegate immediately. Otherwise, you’ll have to go 60 days without earning rewards before you can delegate your entire amount of KEEP.
If you’re decreasing the size of your delegation, you’ll need to wait 60 days without earning rewards before your tokens become liquid. You can then make a new delegation (by contacting Figment to create a new node), or you can select another node operator, or you can trade your KEEP tokens.
Delegating on Mainnet
If your KEEP token grant is held with a Ledger hardware device, connect your Ledger and run the Ethereum application. Begin with the Metamask Chrome extension running on the Ethereum mainnet, and connect your Ledger to Metamask. Ensure that you have a small amount of mainnet Ether (~0.2 ETH) for transaction fees.
You can then use the ‘KEEP token dashboard’ here. Select MetaMask for your wallet:
Delegation to Figment
There will be three addresses that we will provide for you before you can delegate:
- Begin by designating Figment as your operator: 0xFigmentAddress (we will create one for you)
2. Authorizer should be set to a provided Figment address: 0xFigmentAuth (we will provide this)
3. Beneficiary should be set to a provided Figment address: 0xFigmentBank (we can provide this)
What are these three addressed?
The Operator is the staking node that you are backing to do work on Keep, eg. Figment. The Beneficiary is the address that receives all of the staking rewards. The Authorizer is who gives advanced permission to Keeps (eg. tBTC) to slash or seize staked funds in the case that the Operator breaks protocol rules. The Operator isn’t eligible to do work for Keeps until the Authorizer gives permission for slashing/seizing based on contract rules.
For example, tBTC will be one of the Keeps. If you want to back Figment to do work on tBTC to earn rewards, your assigned Authorizer needs to review the tBTC smart contract and authorize (ie. agree to the terms of) the smart contract, which will then automatically permit the smart contract to take a portion of your staked funds if your operator misbehaves, as programmed in the smart contract.
While all of this information may seem overwhelming, remember that Keep is unlike other staking networks. Figment is here to assist you, and if you intend to delegate to us, you should reach out and we will walk you through the process: firstname.lastname@example.org