Recently, Input Output Global (“IOG”), the company responsible for Cardano’s research and development, explained how easy it is to validate the Cardano blockchain (and earn rewards for doing so).
On July 28, IOG’s Olga Hryniuk published an article (titled “How to Stake Your $ADA”) on Essential Cardano that was written by Ivan Irakoze, who is part of IOG’s Marketing & Communication team.
Irakoze started by noting that “staking your ada helps validate transactions on the blockchain using a non-custodial consensus mechanism, while adding security to the network and contributing to Cardano’s decentralization.”
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There are three simple steps:
- Choose a stake pool
- Make sure you have your $ADA on a non-custodial Cardano wallet, such as Daedalus, Yoroi, or Flint.
- Select a stake pool (either by using the “staking” tab of your wallet or by choosing one using an aggregator such as “Cardano PoolTool”).
- Delegate your $ADA to the chosen stake pool so that they get registered for staking; if this pool produces blocks, you will receive staking rewards within 20-25 days. Cardano’s consensus mechanism calculates the rewards at every epoch (i.e. five-day period) ; these rewards are “automatically added to your chosen stake and automatically re-staked for you”.
- Regularly check to make sure your chosen stake pool (using a tool such as https://adatools.io/ or https://pooltool.io/) is producing blocks; if it has stopped doing so (because it got “saturated”), you will need to select another stake pool.
Irakoze also pointed out that staking on Cardano is “liquid”, which means that “when delegating through Cardano native wallets, you can you can withdraw your stake or move it to another pool at any time.”
Image Credit
Featured Image via Pixabay
