cheers thanks for that
1 Like
Hi how can you register to be a staker ?
so do you put the amount of coins you want to stake into daedalus wallet ,how do you then register to stake ? join one of the staking pools ?
These are two different methods.
Live-staking can be done on your machine, right on your Daedalus wallet, but it will require that you keep your computer on 24 x7. This means your wallet participates as a validator in the network (think of it as equivalent of being a miner–but with no special hardware).
Delegated staking involves creating a special kind of keys, that allow someone else (i.e. a pool) to verify transactions on your behalf, while you keep your ADA somewhere safe (hopefully in the mountain vaults in Switzerland). You should be able to generate delegated staking key for your paper/cold wallet. I am not sure how cold staking will work exactly, but you should be able to do it from your cold wallet such as Ledger. You should be able to take those keys, pick a stake pool from Daedalus and delegate your stake to it.
Essentially, in staking you “dedicate” the amount of ADA you would like to be used for validating transactions. There will be a bunch of people (but not everyone I hope) who will do the same. Together these ADA will form the total ADA available for transaction validation. The network protocol will use these ADA to probabilistically pick bunch of Lovelaces that will validate blocks for epoch.
For example, there are 25 BLN ADA in circulation. Now at the beginning of each epoch (which lasts 5 days) the network “surveys” everyone to see how much ADA they want to stake. By default, ADA that is held in exchange accounts cannot participate so those who can participate are the ones who hold their ADA in their wallets. Let’s say people decide to stake 10BLN ADA either through live-staking or through delegated staking.
That 10BLN becomes your total “pie” from which your probability to validate/earn rewards is calculated. Let’s say you own 1BLN ADA. If so, your probability to get picked becomes 1/10, meaning you will validate 10% of all blocks in that epoch and earn 10% of all these rewards.
Note: you are not likely to able to earn more than 1% of rewards in stake pools, because, well the stake pool rewards are likely to be capped. so if you have more than 1% and want to delegate your stake, you will have to split it into smaller chunks of less than 1%.
This is basically the gist of how things might work. I qualify all this with the term “might” because we don’t have all the information to describe staking exactly. But in general, staking should work something along these lines.
Hope this helps.
2 Likes
Live-staking …: Afaik there is no such thing in Deadalus as wallets are Edge nodes.
Delegated staking…: It uses certificates and not keys.
1 Like