EOS operates based on a delegated proof-of-stake consensus that allows token holders to earn passive income by staking their EOS. Here is a detailed guide on how to stake EOS and start earning staking rewards.
Introduction to EOS Staking
The EOS network is secured and governed by 21 Block Producers that are elected by EOS token holders staking their coins to vote for BP candidates. The top 21 BPs validate transactions and maintain the network in return for rewards.
EOS token holders can also earn a share of these rewards by staking their EOS to support specific BPs. The annual yield for EOS staking currently varies between 1-3%.
Step 1: Getting an EOS Wallet
To start staking EOS, you first need an EOS-compatible wallet to store your tokens securely. Some popular options include:
- Anchor — User-friendly EOS wallet developed by Greymass with great staking support.
- Scatter — Meta-mask style EOS wallet enabling easy access to dApps.
- TokenPocket — Mobile EOS wallet with built-in staking features.
- Ledger — Hardware wallet that supports EOS staking.
Make sure to backup your wallet credentials when setting it up for the first time.
Step 2: Purchasing EOS Tokens
Next you need to acquire some EOS tokens, the native cryptocurrency of the EOS blockchain. You can buy EOS from any major exchange like Coinbase, Kraken, Binance etc.
Alternatively, you can swap other cryptocurrencies for EOS using a decentralized exchange like Uniswap.
Step 3: Transfer EOS to Wallet
Once you have bought EOS, withdraw it from the exchange to the EOS wallet you have set up. Make sure to validate the wallet address multiple times before initiating the withdrawal.
Most exchanges will charge a small fee for withdrawals, so factor this into your transfer amount. The withdrawal should be completed within a few minutes.
Step 4: Stake EOS for Voting Power
Now that your EOS tokens are in your personal wallet, you are ready to stake them to earn rewards.
Navigate to the «Vote» tab in your wallet and select the amount of EOS you want to stake. Then allocate your votes to up to 30 Block Producer candidates you want to support.
Confirm the staking transaction and wait for it to be validated. Your wallet balance will now show staked EOS separately from liquid EOS.
Step 5: Claim EOS Staking Rewards
Once your EOS is staked, you essentially delegate the voting rights over those tokens to the BPs you picked. They will pay you a share of their block rewards as interest for your support.
Most wallets like Anchor allow you to easily claim pending staking rewards with the click of a button. Make sure to periodically claim your earnings so they compound.
You can unstake your EOS at any time which releases the tokens back to your wallet after a 3 day waiting period. Simply adjust the staked EOS amount back to zero.
However, for maximum compounding it’s best to leave staked EOS alone for long periods and continually restake earnings.
Staking EOS is straightforward with the right wallet setup and enables hands-off income generation on your holdings. Make sure to monitor BP vote standings and community sentiment to optimize your voting allocation. Happy EOS staking!