What is Flow?
Flow is a decentralized platform that allows developers to create and operate large-scale decentralized applications and games. Its goal is to establish a more open and inclusive digital environment. Flow utilizes a unique four-node architecture that maximizes performance and lowers costs as hardware improves, all while preserving decentralization and avoiding the use of sharding or additional layers. The token that powers the Flow network is FLOW 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 FLOW tokens on the Flow network.
TL;DR
- View the current Flow staking APR here
- Use the FLOW Staking Calculator to estimate your rewards
- Lockup: 1 epoch (~7 days)
- Average commission rate: 8.01% on earned rewards
- Minimum amount required for staking: >0 FLOW
- Estimated time needed to stake your FLOW in your wallet: 2-3 minutes
- Recommended Flow staking wallets: Ledger, Blocto
- Steps to stake:
- Go to the Flow Staking Portal and connect to your wallet
- Select validators
- Enter the amount of stake
- Confirm and happy staking 🤘
Prerequisites
Where to buy FLOW
You can get FLOW 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.
Flow wallets
Flow 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 Blocto wallet. Compatible wallets include:
How to connect Flow network to Blocto
When setting up your Blocto wallet, it will automatically create a Flow account for you.
Selecting Flow validators
Please refer to the FAQ section titled ‘How do I choose Flow validators’ on this page when selecting Flow 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 FLOW are Generated
Learn how rewards are generated in the FAQ section titled ‘How are the rewards generated’’ here.
How to stake FLOW
Step 1: Make sure you have a Blocto wallet
Stake your FLOW tokens using Ledger, Blocto, Dapper wallet, amongst others. We will use Blocto in this staking tutorial.
As a popular wallet in the Flow ecosystem, Blocto offers users the ability to stake tokens, access blockchain apps, and manage multiple tokens in one wallet. Simply connect Blocto wallet to Flow Port to stake FLOW tokens. Download the Blocto wallet onto your phone here. Deposit your tokens into this wallet before continuing onto step 2.
Step 2: Go to the Flow staking portal and choose a validator
After entering your wallet, start staking and select validators. We recommend choosing validators from our Verified Staking Provider (VSP) Program. VSP validators have a blue tick on their logo here. If you are unsure of how to choose a validator, please see the FAQ section named ‘Selecting Flow validators’ above this one to help you decide.
- Sign up on Flow Port
- Connect your Blocto wallet by clicking on ‘Blocto’
- Click on ‘Confirm’
- After you’ve entered the staking dashboard, press ‘Stake & Delegate’
- Click on ‘Start Delegating’
- Input the ID of the validator you would like to delegate to. If you are unsure of how to choose a validator, go to Flow profile page and select a validator that has a blue tick next to it, copy the delegation address
- Come back to the staking portal, paste the validator’s delegation address in the search bar and press ‘Next’
Step 3: Finalize the transaction
- Enter the amount of FLOW tokens you want to stake and press ‘Continue’
- Tick the box and hit ‘Submit’
- Click on ‘Approve’ and then ‘Continue’ finalize the transaction
Make sure you do NOT stake your full available balance. You MUST leave 0.01 FLOW for gas fees. This cost will vary depending on the network activity on Flow network.
Congratulations! You have now staked your FLOW tokens and will start earning those juicy staking rewards.
Step 4: Track staking portfolio
- Track your FLOW staking rewards on the staking dashboard.
- Monitor governance proposals on Flow network that may impact the staking mechanism.
- Track the current and historical reward rates, validator count, number of unique FLOW staking wallets, and staking ratio of the Flow network by visiting the Flow profile 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 Flow validators” and “How are the rewards generated” on the Flow profile page.
Step 5: How to Unstake FLOW
To unstake your FLOW tokens, follow the steps below:
- Click on ‘Stake & Delegate’ on the left-hand side
- Press ‘Manage Delegations’
- Press the ‘x’ sign
- Tick the box and hit ‘Submit’ to confirm unstaking, then click ‘Approve’
Maximizing Staked FLOW
Now that you have staked your FLOW, you have 3 options which can be used to change your position. These options appear on the Flow Staking Portal. The options are:
- Stake more
- Restake reward
- Claim reward and unbond
Stake more
You can stake more FLOW tokens by clicking on ‘Stake & Delegate’ and then ‘Delegate Again’.
Restake reward
Rewards received from staking will not be automatically re-staked through the Flow Port. If you wish to re-stake your rewards, it must be claimed and staked again manually. Use the FLOW Staking Calculator to estimate the best re-staking frequency for your amount of tokens staked.
Claim reward and unbond
Rewards for staked tokens are distributed every Wednesday at 7:00pm UTC. You can claim rewards and unbond your staked position together at the end of every epoch (every ~7 days).
Conclusion
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 Flow and thus contributing to the long-term success of your investment! Flow 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!
Lastly, don’t forget to check out the Flow profile page for more insights into staking FLOW, and drop us a message if you found this tutorial useful. Happy staking!