Stargaze (STARS) Staking Guide

This guide will give you an overview of Stargaze and how to stake your STARS tokens.

Last updated on May 14, 2022

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Stargaze is a Proof-of-Stake (PoS), Cosmos SDK based decentralized protocol focused on building a community-owned Interchain NFT marketplace. Using the inter blockchain communications protocol (IBC), Stargaze can dock onto and integrate with multiple blockchains from the Cosmos ecosystem (such as supporting the Juno smart contracts blockchain). This allows Stargaze  content creators to post content mintable as NFTs and buy/sell NFTs across integrated IBC protocols.

 
Why should I stake my STARS?

Staking is the process of locking up a digital asset (STARS) to provide economic security for a public blockchain, therefore staking your STARS 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 STARS, 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 STARS through staking rewards.
  • Vote for the future – Staking STARS 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 STARS?

As Stargaze utilizes a PoS consensus mechanism, you can delegate an amount of STARS you hold to a "validator", making you the "delegator". Validators on the Stargaze blockchain (and most other PoS blockchains) validate the network by approving transactions. The more STARS 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 STARS, 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 STARS to them.

 

That's how you earn rewards.

 

Note: STARS staking is different in that block rewards not only go to validators, but are also split between users.

How much can I earn from staking my STARS?

At the time this post was published, the APY (Annual Percentage Yield) for staking STARS is 123%.

 

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

What is the minimum amount of STARS I can stake?

To stake STARS, a minimum of 0.05 STARS is required. This ensures you can stake and also pay the Stargaze network transaction fee. You should always make sure to have enough STARS available to pay for network fees, as all blockchain interactions (such as sending a transaction, staking, unstaking, or interacting with other dApps) require them.

How do I stake my STARS?

When you stake your STARS, you are able to choose how much of your STARS you want to delegate to the validator. You can stake any amount of STARS, for which you immediately start accumulating rewards. You will not be able to use the staked STARS for anything else or sell them during the period the STARS are staked.

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

Please note: You will need to manually claim your rewards and re-stake them to earn the maximum possible rewards. More on claiming your rewards below.

Which validator is my STARS staked to?

Currently, if you stake your STARS 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 STARS?

When you unstake your STARS, you can decide on the amount you want to unstake. Once you confirm the amount, your STARS will now be "unbonding" from the validator. This process takes 14 days, during which your unstaked STARS is not earning any rewards. When you unstake your STARS, any unclaimed rewards you may have will be auto-claimed.

 
Please note: When you unstake STARS from any given validator, you can unstake at most 7 times in a 14 day period. If you try more, the unstake will fail. You must wait for one of the previous unstaking entries to expire.
When will I start earning rewards?

When you start staking your STARS and the delegation is confirmed, you will start earning rewards on the staked amount instantly.

How do I claim my staking rewards?

On Cosmos SDK based blockchains, you need to manually claim earned rewards. Unless you have enough STARS to cover network fees for claiming your rewards, you will need to wait until you have earned enough STARS to cover the network fee.

 

On Steakwallet, there is a "Claim Rewards" button right below your staked balance that shows your earned rewards available for claiming.

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

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

Is STARS staking safe?

Given that you always maintain custody of your assets (as Steakwallet is non-custodial), you always remain in full control.

 

While staking STARS is relatively safe, and while we work together with Figment (one of the most reliable validators in the industry), there's always a risk of slashing. If a slashable event happens, you can lose a portion of your staked STARS.

 

There are two ways you can be slashed:

  1. If you delegate to a validator that is offline for over 20 hours (assuming a 7.22s block time), you will lose 0.01% of the tokens you have delegated to that validator.
  1. If you delegate to a validator that signs the same block twice with the same key, you will lose 5% of the tokens you have delegated to that validator.‌

However, this is a very rare occurrence. Staking is one of the safest way to earn rewards in crypto.

 

For a step-by-step guide on how to stake your STARS via Steakwallet, please click here.

 

 
This web page (including the articles contained herein), is for informational purposes only. Please do not construe any such information or other material contained on this web page as legal, tax, investment, financial, or other advice. This web page and the information contained herein is not a recommendation or endorsement of any digital asset, protocol, network, or project. However, Steakwallet (including its affiliates and/or employees) may have, or may in the future have, a significant financial interest in, and may receive compensation for services related to, one or more of the digital assets, protocols, networks, entities, projects, and/or ventures discussed herein.
The risk of loss in cryptocurrency, including staking, can be substantial and nothing herein is intended to be a guarantee against the possibility of loss. This web page and the content contained herein are based on information which is believed to be reliable and has been obtained from sources believed to be reliable, but steakwallet makes no representation or warranty, express or implied, as to the fairness, accuracy, adequacy, reasonableness, or completeness of such information. Steakwallet cannot be responsible, in any way whatsoever, for your use of the information contained in or linked from this web page. Do not rely upon any information found on blog.steakwallet.fi or support.steakwallet.fi without independent verification.
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