Celo (CELO) Staking Guide

This guide will give you an overview on Celo and how to stake your CELO tokens.

Last updated on May 14, 2022

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Celo is a decentralized blockchain platform focused on increasing cryptocurrency adoption among smartphone users and thus heavily focused on being ‘mobile-first’. By using phone numbers as public keys, Celo hopes to introduce the world’s billions of smartphone owners, including those without banking access, to transacting in cryptocurrency.

The network also allows for the creation of smart contracts and decentralized applications and has two native tokens. CELO is the Proof-of-Stake (PoS) token used for securing the network via staking, transaction fees, governance participation and related activities. In future, the platform aims to host various stablecoins, such as the Celo Euro (CEUR) and Celo Dollar (CUSD).

The exact semantics of Celo when it comes to staking differ from many other tokens and chains you may be familiar with. In short you need to lock $CELO before being able to vote (stake) for a validator group.

Why should I stake my CELO?

Staking is the process of locking up a digital asset (CELO) to provide economic security for a public blockchain, therefore staking your CELO helps secure the PoS Stargaze network. Further, most PoS blockchains are initially inflationary in nature, so staking your STARS prevents you from getting inflated out of your position as you earn rewards for helping secure the network and validate transactions. Lastly, you can participate in network governance.

  • Secure the network – With CELO, you have the power to contribute to the security and governance of Stargaze through staking and voting on governance proposals.
  • Earn rewards – When you stake to a validator, you are contributing to the security of the network and are rewarded with CELO through staking rewards.
  • Vote for the future – Staking CELO allows you to vote on governance proposals and contribute to making decisions on the future and direction of the network.
What happens when I stake my CELO?

As the Celo blockchain utilizes a PoS consensus mechanism, you can delegate an amount of CELO you hold to a "validator", making you the "delegator". Validators on the Celo blockchain (and most other PoS blockchains) validate the network by approving transactions. The more CELO a validator holds the more powerful they are and the more "vote" the have in the network, which allows them to validate more transactions, thus earning more rewards. By delegating your CELO, you trust the selected validator to be a good network participant. From the earned rewards, the validator gives a certain percentage (stipulated by the network) back to the delegators that have delegated (staked) their CELO to them.

That's how you earn rewards.

How much can I earn from staking my CELO?

At the time this post was published, the APY (Annual Percentage Yield) for staking CELO is 5%.

For the most up-to-date rewards rate, you can check out the Steakwallet app.

What is the minimum amount of CELO I can stake?

There is no minimum amount of CELO for staking, but you should always make sure to have enough CELO available to pay for network fees, as all blockchain interactions (such as sending a transaction, staking, unstaking, or interacting with other dApps) require them. We suggest to leave 1 CELO in your wallet to cover any fees.

How do I stake my CELO?

When you stake your CELO, you are able to choose how much of your CELO you want to delegate to the validator. You can stake any amount of CELO, for which you start accumulating rewards 24 hours later when your locked CELO is activated by voting for a validator group. Steakwallet automates the voting for you. You will not be able to use the staked CELO for anything else or sell them during the period the CELO are staked.

Make sure you have enough CELO in your wallet to pay for network transaction fees.

Please note: You will not need to claim your rewards manually as rewards are automatically added to your staked balance and therefore automatically compound.

Which validator is my CELO staked to?

Currently, if you stake your CELO with Steakwallet your stake gets delegated to validators run by Figment. Figment is a reliable partner and one of the most trusted validator providers in the industry. We plan to offer more optionality in the future.

How do I unstake my CELO?

When you unstake your CELO, you can decide on the amount you want to unstake. Once you confirm the amount, your CELO will now be "unbonding" from the validator. This process takes about 3 days, during which your unstaked CELO is not earning any rewards. When you unstake your CELO, your account balance should reflect any earnings you made while staking.

When will I start earning rewards?

When you start staking your CELO, your first “lock” your stake and then need to activate your “vote” after 24 hours. This means you must vote for a validator group to activate your stake and earn rewards. Steakwallet automates the vote so you only need to confirm your stake once.

After 24 hours and the vote being active, your staked balance earns rewards.

  • Stake Remaining Locked: If an error occurs when voting in the "Lock and Vote" process, Steakwallet will recognize you have non-voting locked CELO, and give you the option to vote with it.
  • Unlock Stake: If an error occurs when voting in the "Lock and Vote" process, Steakwallet will recognize you have non-voting locked CELO, and give you the option to unlock it.
How do I claim my staking rewards?

Staking on the Celo blockchain does not require manually claiming your rewards as rewards are automatically added to your staked balance and thus earnings are compounded.

When you wish to claim your rewards you need to unstake your balance.

Does Steakwallet take a cut of my rewards or charge a fee?

No. Steakwallet never charges a fee on your staking rewards.

Is CELO staking safe?

On the Celo blockchain, only validators and validator groups can be penalized, or slashed for malicious behavior such as persistent downtime or double-signing. Holders of locked CELO cannot be slashed.


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