Staking Tezos (XTZ) with Atomic Wallet is very simple. First, you need to download and install the app. Then, follow these steps:
Step 1. Open Atomic Wallet.
Step 2. Get XTZ. You can exchange it from another cryptocurrency within the wallet.
Step 3. Click on Tezos from the coin list.
Step 4. Click on Stake.
Step 5. You will see the staking interface: notification that you can only stake the whole balance to one validator (baker, in Tezos network), your available balance for staking, and rewards. Click Stake to proceed.
Step 6. You will see the list of bakers with applicable characteristics: reward %, current staking amount, an available amount for staking. Choose a baker according to them.
Step 7. Enter the password and click on Confirm.
Step 8. That’s it! Your XTZ is now staked. You just need to wait — the delegated reward will be proceeded in approx. 2 months after the 22 cycles are done.
When do I get Paid for Baking?
The delegated reward will be proceeded in approx. 2 months after the 22 cycles are done.
Cycle 1: You delegate XTZ to a baker.
Cycle 8: Tezos blockchain assigns your delegation rights to your baker.
Cycle 15: Your rewards for cycle 8 start are getting collected.
Cycle 22: You get the rewards for 8-15 cycles to the address you were delegating from by the baker.
1 cycle equals to 4,096 blocks. When 1 block is formed in 60 seconds, 1 cycle is formed in about 68 hours. So, you start getting the rewards after the 22 cycles are completed, which is approx. 2 months. Subsequent payments are made every 7 cycles, approx. 20 days.
What is Tezos (XTZ)
Tezos is a cryptocurrency built on the proof-of-stake algorithm. It allows making a profit for the baking of new blocks, which is quite like minting with the proof-of-stake protocol. Cryptocurrency staking means that you can earn passive income through owning a stake in the issuance of a coin. Staking differs from baking in what your reward is given for.
When your stake a coin you get rewarded simply for storing it for a certain period of time. In this case, the larger stake you have, the larger your passive income will be. When you receive a reward for baking like with Tezos you receive it for the baking of new blocks.
What is Tezos (XTZ) Baking
In order to bake new blocks, you must have at least one roll, which is 10,000 Tezos (XTZ). If you do not have such amount in possession, you can delegate your share to a baker. The baker will be randomly selected from several bakers by protocol. The more rolls the baker has – the better are their odds for baking a new block. This is the principle of proof-of-stake consensus.
The baker receives a reward of 16 XTZ for a baked block. Tezos blocks are baked every 60 seconds. Besides bakers, endorsers, who validate new blocks, also take part in the process. This allows to avoid double baking and double endorsing. There are 32 endorsers for every new block, and they get a reward of 2 XTZ for endorsement.
In order to bake a Tezos block, you need to delegate your Tezos share to a baker. Your and the baker’s stakes will be summed together, however, delegating your share you do not delegate the coins themselves and the baker cannot spend them. Therefore, you do not have to worry about your money when you delegate your XTZ.
This way, you can delegate your share to the bakers, let them use it for baking, meanwhile, you receive a passive income for that.