Anyone can participate in staking HASH, Provenance’s native token, by becoming a delegator. A delegator is simply a person who stakes their HASH with one of the Provenance validators.
This guide is intended to:
- Have a broad overview and understand the key points of Provenance
- Explain the steps necessary to set up a wallet and acquire HASH
- Delegate and stake HASH with a validator to begin earning rewards as a delegator
- Learn more about Provenance
Provenance is a Cosmos-based blockchain whose mission is to develop a vibrant ecosystem of decentralized financial services for a variety of financial institutions like asset originators, fund managers, banks, and investors. The Proof of Stake blockchain is distinguished by three elements: modules, smart contracts, and a contract execution environment. These three elements work together to create a blockchain network that makes DeFi application building accessible to all.
The HASH token is used as a spam-prevention mechanism, as well as a staking and governance token. The spam-prevention mechanism requires a certain amount of HASH for transaction validation on the Provenance blockchain. Afterwards, stakers can earn additional rewards in HASH by delegating to validators, which secures the network. As the number of HASH delegated to validators increases, so does the overall security of the network. Finally, stakers of HASH can also use their voting power to participate in on-chain governance.
Key Staking Considerations
- Rewards are distributed every block;
- There are slashing penalties for downtime and double signing;
- Double signing occurs if two blocks are confirmed at the same height by the same validator – 5% of HASH are slashed;
- Downtime happens if a validator misses more than 95% of the last 17,280 blocks, which will result in the destruction of 0.01% of HASH delegated;
- 21 day unbonding period;
- New delegation required for compounding;
Set up your wallet
Step 1. Navigate to https://wallet.provenance.io/ and select the connect button.
Step 2. At the bottom of the pop-up window, click on “Create new wallet”.
- Important: The browser password manager must be enabled since the encrypted private key is stored this way.
Step 3. Select “Generate seed phrase” and click “Continue” for a new wallet.
- Note: If you have previously created a wallet, you can import the existing seed phrase or private key to regenerate the wallet.
Step 4. A new pop-up window will appear and show your 24 word seed phrase. Make sure to write down these 24 words and have a backup of this wallet saved. This will allow you to restore the wallet if needed. Ensure this file is stored in a safe location. Once you have copied and stored your seed phrase, select “Continue” at the bottom of the window.
- Important: Loss or compromise of your 24 word seed phrase may result in permanent loss of your HASH.
Step 5. Verify the requested words of your seed phrase to continue.
Step 6. Fill the information by choosing a wallet name and password.
- Note: The wallet name serves as a way to identify your encrypted private key. The password is used to encrypt your private key before it is saved. Private keys are encrypted and stored locally. This password will be needed to decrypt the private key in order to complete transactions.
Step 7. On the “SAVE TO KEYCHAIN” window, select “Copy” and paste the encrypted private key in the password field below.
- Important: the password manager must be enabled to save the password.
You have now created and saved your Provenance wallet !
Fund your wallet with HASH
Step 1. Navigate to https://www.figure.com/login/register to create an account.
- Note: Choose the adequate type of account, enter the information and select “Sign up”.
Step 2. Select “Create Wallet” on the redirected page.
Step 3. Select “Continue” on the new pop-up window.
- Note: Change the wallet name if desired like and select “Submit”.
Step 4. Review Figure’s custody agreement, enter your full name and select “Sign & Submit”.
Step 5. From Figure’s dashboard, select “Menu”, and “Link Provenance Wallet”.
Step 5. Enter your credentials on the new pop-up window, and select “Connect”.
Step 6. Select “Set as wallet default” and hit “Submit” on the new window that Figure auto filled with the details of your wallet.
Step 7. Set up your Figure Passport in order to fund your Provenance Wallet.
- Note: Follow ALL the steps in order to connect your bank account to Figure’s dashboard.
Step 8. Select “Deposit” in order to fund your account.
Step 9. Select “Trade” in order to exchange USD for HASH.
- Note: You can now return to https://wallet.provenance.io/ to see your HASH and to interact with the Provenance ecosystem.
Delegate and stake your HASH
Step 1. Navigate to https://explorer.provenance.io/dashboard
Step 2. Select the Key icon in order to connect your wallet.
- Note: If you followed the previous steps, select “Provenance Wallet”.
Step 3. Enter your credentials on the new pop-up window, and select “Connect”.
Step 4. Select “Staking” on the top menu.
- Note: you can also go directly to https://explorer.provenance.io/validators.
Step 5. Search for the Figment moniker and select “Delegate”.
- Note: Figment validator can also be found with the following validator address: pbvaloper1g0ksqyf6rehy5j8hzsq34tdl9kkc8cetgdgmat
Step 6. On the new pop-up window, enter the amount of HASH you wish to delegate and select “Delegate”.
Step 7. Confirm the Figment validator address and select “Confirm” and “Broadcast”.
- Figment validator address: pb1env6shlkv2jtd4qyjd2xl70mcha8m07mp8uemq
Congratulations! You have successfully delegated your HASH to the Figment validator.
You can now track your staked HASH under the My Validators section of the Provenance Explorer Staking dashboard.
Reward Rate Information
Delegators staking HASH receive rewards based on the transaction volume. Provenance is non-inflationary since the 100 billion HASH have been minted since genesis. Since there is no inflation adjustment, the rewards are redistributed from the fees paid for the transactions. Thus, the higher the volume of transactions, the more rewards are distributed.