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ATOM staking tutorial: how to send your wallet to the Cosmos!

the Cosmos Network, “internet of blockchains”, continues its development and is one of the key players in the ecosystem. We will focus here on this promising project which offers an innovative approach to certain blockchain problems and has a committed community. We will focus on its native token, theATOMand will see why and how the staker on the node of Node Guardians.

Introducing Cosmos and the ATOM

Cosmos Network

The project Cosmos aims to offer an alternative to “slow, expensive, non-scalable and environmentally harmful” proof-of-work protocols, such as those used by Bitcoin.

Concretely, it tackles 2 major problems:

  • Simplify the work of developers: Cosmos offers tools (the Cosmos SDK) so that developers can easily create blockchains suitable for the applications they want to deploy on them. This is the opposite of the classic industry operation which usually consists of adapting Dapps to the blockchains on which they are established. L’Blockchain Application Interface (ABCI) also allows developers to code Dapps in the language of their choice.
  • Interconnect blockchains: the project encouraging the creation of multiple blockchains, it logically proposes to connect them together. This is done using the Tendermint Core, which offers the possibility for blockchains to exchange while maintaining their own identity (language, consensus mechanism, etc.). This makes Cosmos linternet of blockchains also called Cosmos HUB.

The ATOM token and the interest of staking

The ATOM token

ATOM is the native token of the ecosystem. It has several uses:

  • Pay gas costs: fees are charged to validate transactions made on the blockchain.
  • Securing the network : Cosmos works with a Proof of Stake (PoS) consensus mechanism. ATOMs can therefore be used as collateral to validate transactions by being staked.

Like all PoS blockchains, the validator in charge of adding the next block to the chain is drawn by lot. The more this validator has staked of ATOM, the more his chances of being drawn increase. Staked ATOMs are used to ensure that the validator does not cheat on the content of the block when adding it. If fraud is detected, the tokens he has staked (=stakes) are confiscated from him.

When a validator is selected to add a block, they earn rewards for doing so.

You have the possibility to create your own node to become a validator but it requires a lot of technical skills and a minimum of 57389 ATOM. Fortunately, it is possible to join an existing validator by delegating your funds to them. This is the subject of the following tutorial. This will then have more chances of being selected to validate a block. To thank you, the validator redistributes part of the rewards he receives (in proportion to the tokens delegates minus a percentage).

The interests of staking

Delegating your tokens to a validator therefore offers more advantages than simply keeping them in your wallet. By staking your ATOMs you can:

  • Vote : you have the opportunity to participate in the governance of the network with voting power proportional to the number of tokens you delegate.
  • Get passive income: at the time of this writing, the average compound interest for delegating ATOMs is over 18%. ATOM is an inflationary token with an infinite total number of tokens. Staking rewards compensate for the loss of value due to inflation. Also, we can consider that staking rewards are not used to earn money, but not to lose it.
  • Get airdrops: Many projects that launch on the Cosmos Hub reward those who help secure the network by giving them tokens.

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Steps to follow to stake your ATOMs

Buy ATOMs

In order to be able to stake ATOM, of course you have to have one. You can buy it on most centralized exchanges. If you prefer to acquire it on a decentralized platform, you can turn toOSMOSIS which is the reference DEX of the Cosmos Hub.

Send your ATOMs to your wallet

KEPLR is a wallet that was designed especially for the Cosmos Hub. It is therefore to this tool that we advise you to send your funds.

If you do not know how to install or use it, you can consult this tutorial which explains the procedure.

Once installed, you will find your address by clicking under the name of your wallet or by displaying the corresponding QR by clicking on “ deposit “.

ATOM deposit on Keplr

Stake your ATOMs

Clicking on ” Stakes » you will be redirected to the web page linked to your KEPLR portfolio. This interface offers the ability to easily manage all the assets you own on the Cosmos Network.

ATOM Staking

You can choose the validator you wish to delegate your funds to. To find the knot of Node Guardiansenter the address cosmosvaloper1jst8q8flpn94u9uvkpae8mrkk3a5pjhxx529z2 in the case ” Search Validator ” as shown below.

Node Guardians Node Search

For the most curious, you will find more information on the knot of Node Guardians at this address. Then choose ” Delegate »

Delegate on Noade Guardians

Enter the number of tokens you want to delegate (remember to leave some on your wallet to be able to pay the gas fees when you sign other transactions). Then confirm with ” Delegate » and approve the transaction via your wallet.

Delegating on Node Guardians continued

Attention : You will have to wait 21 days to recover your ATOMs from the moment you decide to no longer delegate them. During this period you will not receive staking rewards.

It’s done, your tokens are staked! You can verify this by looking at the part “ My Validators » where you will see Node Guardians

Check ATOM staking

Redelegate your ATOMs

If, as in the example above, you had delegated your ATOM to another node before knowing the address of that of Node Guardians, you can re-delegate them directly without waiting 21 days. To do this, use the option “ Redelegate in the management of your validators.

In the example below we will transfer our ATOMs from the node of citadel.one to that of Node Gaurdians (cosmosvaloper1jst8q8flpn94u9uvkpae8mrkk3a5pjhxx529z2).

Redelegate ATOMs

After clicking on ” Manage », choose « Redelegate “.

Redelegate ATOMs continued

You can now choose the node from Node Guardians by entering the address cosmosvaloper1jst8q8flpn94u9uvkpae8mrkk3a5pjhxx529z2 in the search bar.

Redelegate ATOMs seek Node Guardians

Then click on ” MAX ” then ” Redelegate and approve the transaction with your wallet.

Redelegate ATOMs Suite 2

Your ATOMs are now on the node of Node Guardians !

Claim your staking rewards

Your interest is credited to your wallet continuously. To claim them, just go to “ Claim and validate the transaction.

Claim your staking rewards

Collect your ATOMs

You can retrieve your tokens in just a few clicks but with a delay between your request and when they will be in your wallet.

To do this, go again to ” Manage » then choose « Undelegate »

Recover your ATOM

Enter the number of tokens that you want to recover then confirm with ” Undelegate and nod with your wallet.

Get your ATOMs back

You will find your tokens after a 21-day wait during which you will not receive staking rewards. Once validated, you cannot cancel your request.

Now you know everything about ATOM staking. If you believe in this project and decide to invest, it would be a shame not to stake your tokens. We of course encourage you to do this on the node of Node Guardians to support our team who will be very grateful to you.

You have the right to understand nothing about the staking of ATOM in the Cosmos. On the other hand, not being interested in Bitcoin is unforgivable! Don’t wait any longer to prepare for the future en going to register on the Binance platformTHE absolute benchmark in the sector (commercial link).

John R. Zepeda

I have extensive experience working as a content writer in the areas of cryptocurrencies and finance, where I create interesting pieces that both inform and engage their audiences.

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