If you’re new to crypto, you may be unfamiliar with certain regularly used words in this space. Terms like mining, delegating, staking and so on may sound strange. That’s why this article has been put together, to help you understand what Elrond’s eGold (EGLD) staking is.
Although a relatively new blockchain. Elrond is the most decentralised and to a large extent, the most rewarding network currently. It is highly scalable, offers users a high level of privacy and provides more opportunities for the new internet economy. EGLD staking is one reason why Elrond is often considered the most valuable network by developers and users today.
Keep scrolling to understand what EGLD staking is and how you can earn money from it.
What is Cryptocurrency Staking?
Staking means locking cryptocurrencies (for example EGLD) to secure a blockchain network like the Elrond Network. When you lock your tokens to secure a network, you receive/earn rewards for doing that. This is the major principle behind the proof of stake (PoS) consensus mechanism, a more energy-efficient alternative to the proof of work consensus mechanism.
Elrond EGLD holders are incentivized to support the Elrond network by staking and locking EGLD into a smart contract while earning rewards in return. They do this by delegating a minimum of 1 or more EGLD or by running a validator node with a 2500 EGLD stake. Validator rewards are distributed automatically while the delegator rewards are claimable once per day with no time limits.
Currently, when your EGLD tokens go into an incentivized list called the waiting list, you can earn up to a 20% annual percentage rate (APR) depending on how many tokens you stake. The waiting list helps you reserve your spot and starts your reward tracker. As soon as a delegator signals their intent to undelegate, the EGLD that you have registered in the queue will replace those of the user that wants to undelegate.
To learn about your APR, you can use the Elrond staking calculator on their official website. It will calculate your yearly returns as a percentage as well as give you a daily, weekly and monthly breakdown, this is all based on the number of tokens that you stake.
Note: This is based on open or active staking. You can withdraw your staked EGLD at any time although you should know that a 10-day unbounded or holding period will apply.
How to Stake EGLD on your Elrond Wallet
First, you must create an Elrond Web Wallet (link “Elrond web wallet” to our article on how to store EGLD). You can do this on the official website, on the Maiar App or the Maiar DeFi Wallet. Then, you will add funds to your wallet by buying some EGLD tokens via the Elrond official website, from an exchange like Binance. When you have successfully bought some EGLD tokens and transferred them to your wallet, then, you are ready to stake EGLD.
Below are simple steps to follow to stake your EGLD tokens:
Step One: Choose a Validator
- Visit StakeAfrik's Delegation Manager
- Log in to your Elrond Wallet.
- Go to the stake dashboard.
Note. If you are on the main panel of your wallet, then you can skip this step and immediately press the round Stake Now button.
- A page will display, and this page will show you your staking statistics, the number of staked tokens, active staking, and available rewards.
- Click on Stake Now to open the list of validators.
- Enter the validator's name. Then check the box and click Continue.
Note: Pay close attention to the Filled field. It shows how busy the validator is with delegators. Elrond network only accepts a limited number of delegates.
Step Two: Delegate EGLD Tokens
- Enter the number of tokens you want to stake. This can be done manually or by moving the slider. Then click Continue and wait for confirmation from the validators.
- Check the transaction parameters and click Confirm.
Bravo! Your EGLD Tokens have been staked successfully.
Frequently asked questions about staking
In this section, you’ll read about the commonest questions people ask about staking EGLD and the right answers to them. Keep scrolling to learn more.
Is Staking non-custodial?
Staking is non-custodial. This means that when you stake with staking agencies like StakeAfrik, they do not have direct access to your funds at any point in time. The entire process is carried out securely through the Maiar wallet.
What are the minimum EGLD stake and unstake amount?
The minimum amount that you can stake is 1 EGLD. There's no minimum amount to unstake. However, note that it is not possible to leave less than 1 EGLD staked.
When are rewards distributed?
Rewards are distributed daily (At around 02:20 PM UTC). If you want to have the rewards available, you will need to claim them. Claiming takes seconds and you are charged a small transaction fee.
How can I unstake and how long does it take to unstake?
You can unstake your EGLD at any time. The entire unstake process takes 10 days. You have to initiate the unstake process through an unstake transaction. 10 days later, you will need to finalise the withdrawal of your unstaked EGLD.
How much will I earn?
At StakeAfrik, you’ll earn up to 20% APR depending on how many tokens you stake with us. APR (Annual Percentage Rate) is how much you will earn from the investment each year.
Conclusion
You’ve seen that staking isn’t as hard as you may have thought it would be. It’s so easy that anyone can understand. We trust that this article has helped you, so, you can now stake your EGLD confidently because you’ve been armed with the right information. To learn more about Elrond and how to buy, sell or stake your EGLD, contact StakeAfrik today.
