Cosmos Hub is an ecosystem of interconnected blockchains, known as the “internet of blockchains,” that enables the exchange of digital assets and data using the Inter-Blockchain Communication (IBC) protocol. Cosmos believes that interoperable blockchain technology will make the global economy more resilient, transparent, and efficient through decentralization and programmable value. Their vision is for the future economy to consist of millions of specialized blockchains that facilitate the exchange of both real-world and provably scarce digital assets. The token that powers the Cosmos network is ATOM and it is exclusively used for trading, staking, delegating, paying transaction fees, and governance votes on the network. This tutorial will show you how to stake your ATOM tokens on the Cosmos network.
- View the current ATOM staking APR here
- Use the ATOM Staking Calculator to estimate your rewards
- Lockup: 21 days
- Average commission: 7.19%
- Minimum stake: No minimum
- Recommended Cosmos staking wallets: Ledger, Keplr
- Steps to stake:
- Go to the Keplr Staking Dashboard, connect your Ledger and select Cosmos Hub on the left panel.
- Select a validator from the table. If you are unsure which validator to delegate to, refer to our FAQ on choosing a validator for guidance.
- Once you have chosen a validator and decided on the number of tokens you would like to stake, click ‘Stake’ and input your desired token amount.
- Finalize by clicking ‘Stake’ and confirming the transaction in your wallet.
Where to buy ATOM
You can get ATOM tokens at a cryptocurrency exchange, at a DEX, or within select wallets. You should always do your own research when selecting a reputable cryptocurrency exchange. For best security, it is not recommended to leave your tokens on an exchange, but transfer them to your non-custodial or cold/hardware wallet after procuring them.
Cosmos (ATOM) wallets
Cosmos has a variety of non-custodial wallets for you to choose from. We recommend that you use a hardware wallet such as Ledger otherwise we suggest using Keplr wallet. Compatible wallets include:
How to connect Cosmos (ATOM) to Keplr
When setting up your Keplr wallet, it will automatically create a Cosmos account for you.
Selecting Cosmos validators
Please refer to the FAQ section titled ‘How do I choose Cosmos validators’ on this page when selecting Cosmos validators. Also, you may want to utilize our criteria for verifying providers through the Staking Rewards Verified Staking Provider (VSP) Program.
How Staking Rewards for Cosmos (ATOM) are Generated
Learn how rewards are generated in the FAQ section titled ‘How are the rewards generated’’ here.
How to stake Cosmos (ATOM)
Step 1: Make sure you have a Keplr wallet
Stake your ATOM tokens using Ledger, Keplr, Exodus, Cosmostation, amongst others. We will use the Keplr wallet in this staking tutorial.
As a popular wallet in the Cosmos ecosystem, Keplr offers users the ability to stake tokens, access blockchain apps, and manage multiple tokens in one wallet. Simply connect your Ledger (if applicable) to Keplr wallet or use Keplr wallet directly to stake ATOM. Install the Keplr browser extension and deposit your tokens into this wallet before continuing onto step 2.
Step 2: Go to the Cosmos staking portal and choose a validator
If you are unsure of how to choose a validator, please see the FAQ section named ‘Selecting Cosmos validators’ above this one to help you decide.
Go to the Cosmos staking dashboard and follow the steps below:
- Click the ‘Connect Wallet’ button in the top-right hand corner of the page
- Select validators and click the ‘Manage’ button on the ones you have chosen
- Click ‘Delegate’
- Enter the amount of ATOM you want to delegate
- Click ‘Delegate’
Step 3: Finalize the transaction
Enter the amount of ATOM you want to stake, press delegate and approve the transaction in your wallet.
Congratulations! You have now staked your ATOM tokens and will start earning those juicy staking rewards.
Step 4: Track staking portfolio
- Track your ATOM staking rewards on the Cosmos staking dashboard.
- Monitor governance proposals on Cosmos network that may impact the staking mechanism.
- Track the current and historical reward rates, validator count, number of unique Cosmos staking wallets, and staking ratio of the Cosmos network by visiting the Cosmos asset page. To make better staking decisions, it’s essential to understand these relevant data points. To learn how these data points could impact your staking rewards, please read more in the FAQ sections named “How do I choose Cosmos validators” and “How are the rewards generated” on the Cosmos asset page.
Step 5: How to Unstake Cosmos (ATOM)
To unstake your ATOM tokens, follow the steps below:
- Go to the staking dashboard
- Click ‘Manage’ next to your validator
- Click ‘Unstake’
- Sign the transaction
Maximizing Staked Cosmos (ATOM)
Now that you have staked your ATOM, you have four options which can be used to change your position. These options appear on the Cosmos Staking Portal. The options are:
- Stake more
- Compound your rewards
- Claim reward
You can add to your current delegation by clicking on the validators name and staking more ATOM with them or any other validator.
Firstly, delegating from one validator to another can be done without waiting for the unbonding period. You might consider redelegating if your current validator raises their commission rate or gets jailed for misbehaviour on-chain. Once redelegated, you have to wait for 21 days before you are able to redelegate again.
Compound your rewards
Rewards are not auto-compounded. To get the most out of your tokens, you should consider claiming and staking your rewards more frequently, but consider that each transaction will cost you some gas. By using our Cosmos staking calculator, you can calculate the optimal re-stake frequency for your amount of ATOM. Some tools, such as restake.app, will enable you to pick a validator who will auto-compound your rewards for you, so keep this in mind.
The amount of accrued rewards will be available and shown in your dashboard. To receive your staking reward when it is credited, simply click Claim Reward on the wallet home screen.
You can unstake your delegated ATOM immediately, but tokens will be available in your wallet only after the end of the period of unbonding, which lasts 21 days. If you want just to change the validator, then there is no need to unstake, since you will not receive rewards throughout the entire unbonding period — just use the Redelegate function. In this case, the unbonding period does not apply.
Staking is essential to Proof-of-Stake blockchains and comes with many benefits for investors and the network:
- Investors earn yield from token emissions and/or transaction fees.
- Stakers become eligible for airdrops as many networks prioritize granting these benefits to them.
- Staking helps to secure the network
- Staking from multiple participants helps decentralize the network
- Stakers can participate in governance, as many PoS networks allocate governance rights based on the amount of tokens staked.
Congratulations! You are now not only getting the most out of your investment with compounded returns. YOU are also (in-)directly contributing to the decentralization, and the network security of Cosmos and thus contributing to the long-term success of your investment! Cosmos needs active stakers like you to become successful long-term.
Now share the tutorial with your friends so they can get to start staking as well!