What is Celo?
Staking CELO through the Celo Wallet achieves a user-friendly experience through the use of users’ phone numbers as public keys. This allows them to form a phone to phone social payment network. Within this network, network fees and governance votes utilize CELO, the platform’s native token.
By staking on the CELO network you can expect to earn a 6% return. In this way, your tokens are delegated to Validators which gather transactions from nodes and execute smart contracts through a Byzantine Fault Tolerant (BFT) Consensus protocol. You earn Rewards when your validator is selected to take part in the next BFT consensus vote.
What you need to stake Celo
- Enough CELO to pay for fees, which are roughly 0.001 CELO
- A CELO Web Wallet (Step 1)
- A CELO Desktop Wallet (Step 3)
Step 1 – Setting up your CELO Web Wallet for staking
Your first step is to head to Celowallet.app and go through the signup process to create your Celo Wallet. The process will require writing down your seed phrase, so make sure you have some paper nearby.
Step 2 – Finding your CELO Wallet address
You are going to need some CELO in your wallet to stake it. You view your CELO wallet address by clicking on Receive CELO.
Step 3 – Setting up your Desktop CELO Wallet
Staking your CELO must be done on the desktop app. In this next step, we can restore our CELO wallet onto the desktop app using the seed phrase of the CELO wallet we made in Step 1.
Step 4 – Locking your CELO
Before you stake your CELO, you will have to lock your CELO up. First, you have to click the down arrow on the green
More button and then click Lock. On the next screen, you simply input the amount of CELO you would like to lock and then click Continue and then Lock.
Step 5 – Exploring CELO Validators
Whenever you are delegating to a validator, you want to make sure they have a good track record. First click on the More button and then the Stake button. You can then click the down arrow on any validator to get a more in-depth summary of their status.
Step 6 – Delegating to a validator
From the validator screen, click the See/ Change your Vote button, and then from the dropdown select your preferred Validator Group. After this, you will have to input how much CELO you wish to stake and then click Continue and then the Vote button on the next screen. Your CELO vote takes 24 hours to register and will start accruing rewards after that 24 hour period.
Step 7 – Activating your Validator Votes
Your last step in staking CELO must be done 24 hours after the last step and just involved activating your validator vote. The process simply involves clicking on the Vote for Validator transaction in your transaction history and then selecting your validator group. From here just need to click Continue and then Activate and you’re done.
Conclusion
CELO combines the tokenomics of a collateral-backed stable coin like LUNA with the social-payment system of Venmo/BEAM. Staking allows users to earn rewards that will end up covering future network fees, effectively mirroring the frictionless transactions of our current centralized finance system. The current Staking Rewards can be found here.
Furthermore, the success of the CELO network is dependent on the quality of the light applications built, as they form the end-user experience. If these applications are user-friendly, we can expect user adoption to rise and CELO as a network to prosper as well.
Important links
Check out the most up to date staking data on our Celo Asset Page
Forecast your future income using the Celo Advanced Calculator
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