This article is sponsored by Ava Labs. The article below provides estimates that are used strictly for informational purposes and made without any representation, warranty, or guarantee that you'll achieve the same results. The potential rewards hinge on various factors, including the amount you direct, the protocol's uptime, and the staking duration. The Avalanche protocol is responsible for generating rewards, and the estimated rewards can vary based on the protocol's conditions. Please conduct your own research before staking or delegating your tokens.
For many reasons, some crypto natives often wish to keep their holdings in long-term storage and away from hacks and exploits. However, the vast majority are always exploring various opportunities to fully utilize their crypto assets, particularly if they are able to HODL and receive staking rewards at the same time.
This is evident in the rising popularity of crypto staking, where users can receive staking rewards while providing security to a network such as Avalanche. Yet, while crypto staking through centralized entities is rather straightforward to the user, staking directly through a dApp can be rather unintuitive and confusing to newcomers. In this article, join us as we take a peek into the world of crypto staking and how Core makes it easier for you to stake your crypto.
What is Crypto Staking?
For starters, crypto staking is the act of locking up your tokens to earn staking rewards. Some staking programs are centralized, where a central entity holds custody of the staked crypto and distributes rewards on its own accord. For decentralized projects, the staked tokens are usually held in a smart contract (but still custodied by the staker), where stakers earn inflationary rewards, a share of the project’s revenue, or both.
One of the many forms of crypto staking that have quickly gained attention in recent years is network staking, where Proof-of-Stake networks like Avalanche allow validators to lock up tokens on the platform to secure the network. Users may also delegate their tokens to validators to receive staking rewards without having to run their own node.
As more users stake their tokens, it makes it harder for malicious actors to seize control of the network, making it more secure. However, the decentralization of a network depends on how these staked tokens are spread across validators. As a reward for committing their crypto holdings and other resources to secure the network, validators and delegators are often rewarded with new emissions of the network’s token, as well as a share of transaction fees.
Source: Avascan
As of the time of writing, over 62% of the total AVAX supply is currently staked on the Avalanche network, with close to 50 million AVAX delegated to validators. With an estimated figure of 7.9%* in annual staking rewards, it’s no surprise that AVAX holders are incentivized to stake their tokens on the network. However, staking on Avalanche comes with a variety of other benefits as well.
*Estimates are provided for informational purposes only, without any representation, warranty, or guarantee, and do not represent any assurance that you will achieve the same results. These estimates are based on a number of factors, including the amount delegated, uptime, and staking period. Rewards are generated by the underlying protocol, and estimated rewards are subject to change based on the underlying protocol. Please conduct your own research before staking or delegating your tokens.
Why Avalanche (AVAX) is the Choice for Beginners
Designed to accommodate higher transaction throughputs for a fraction of the cost, Avalanche aims to become a scalable blockchain platform that provides near-instant transaction finality and cheaper fees using its own unique Avalanche consensus mechanism. The network hosts a mature ecosystem of dApps for DeFi, games, and NFTs, as well as independent customized blockchains known as Subnets, which run on Avalanche, promoting further scalability. Furthermore, Avalanche houses a robust environment of staking tools and analytics, offering plenty of advantages for new stakers.
Self-custody staking facility
Like most decentralized staking programs, users retain full custody of their staked tokens. Validators and delegators can simply head to the staking portal or stake through various front-end applications like Core Stake to begin staking. Core’s new Staking feature allows users to directly stake their tokens on Avalanche without any additional charges or any centralized entity that takes control of your tokens. Users can also claim their rewards and unstake their crypto assets anytime they want. However, there is normally a waiting period before the withdrawal process is completed.
Low Barrier to Entry for Higher Rewards
Compared to other networks, Avalanche offers higher throughput, quick transaction finality, and lower fees. While stakers with fewer holdings tend to be put off by high transaction fees, staking on Avalanche could cost you less than a dollar, with estimated staking rewards that are higher than Ethereum in its current state. Other than a 2% delegation fee paid to validators and the necessary transaction fees, Avalanche charges no extra fees for staking. No special tools or third-party platforms are required as well. Holders can directly connect their wallets to the staking platform to deposit their tokens.
Contribute to a growing ecosystem
Network validators play a crucial role in providing an efficient and secure network for decentralized applications within the Avalanche ecosystem. With enough tokens staked on the network, developers and users are more confident in the safety of the platform on which they operate.
If you’re ready to stake your idle AVAX, Core now offers a user-friendly tool for self-custodial AVAX stakers. Here’s how you can kickstart or improve your staking journey with Core.
Staking with Core
Branding itself as a complete Web3 toolkit, Core is more than just a crypto wallet, hosting a variety of exciting tools for newcomers and veterans in the crypto space. In the Portfolio section, users can view their current holdings across Avalanche, Bitcoin, Ethereum, and all EVM chains and perform different transactions, such as sending, swapping, and bridging tokens directly from Core’s user interface.
The Tools section connects users to handy services such as token faucets, developer tools, and detailed statistics about the Avalanche network. Users may also discover 500+ decentralized applications (dApps) built on Avalanche and get the latest updates on news, events, and Avalanche educational materials by visiting the Discover section.
With the release of their user-directed Stake feature, Core offers an intuitive interface for stakers and validators to manage their delegations and nodes respectively. While the feature itself is not managed by Ava Labs, Stake acts as a direct gateway to the Avalanche staking portal. Designed to simplify the staking process for stakers and validators, it enables users to stake their AVAX with just a few clicks.
It is important to keep in mind that there are no middlemen or added fees (other than those from the network) when staking through Core. With Core’s staking feature, validators and delegators can select their preferred staking duration, amount, and delegation fees, combined with a detailed interface to manage their staking position and rewards.
Validating AVAX on Core’s web portfolio
Choosing AVAX Delegation period on Core’s web portfolio
Stake on Core’s mobile app for iOS/Android was built for users looking for a simple way to participate in securing the Avalanche network without having to deal with any technical jargon. On mobile, Core users can delegate and customize their settings, all while having access to a dashboard of their stakes on the go.
Stake dashboard on Core wallet for iOS/Android
How to Stake with Core
Delegating AVAX with Core Web
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Head to core.app/stake and connect with your Core extension or Ledger
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Once connected, navigate to the Delegate panel.
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To delegate, AVAX will need to be present on the P-Chain. The currently available tokens will be displayed to the user, and if no AVAX is currently available, the options of transferring from the X or C Chains, swapping other C-chain tokens, or buying AVAX will be available.
NOTE: A minimum of 25 AVAX is required to delegate on the Avalanche Mainnet.
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Next, choose a staking duration. A graph is present to represent the estimated reward based on the staking duration you have selected.
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After choosing a delegation period, users will be able to select the node they want to delegate their AVAX to.
NOTE: Validators charge fees to users that delegate AVAX to their nodes. This fee can be seen in the far right column of the page.
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After selecting a Node, the user will choose the address where the rewards will be delivered. Users can choose between their connected P-Chain wallet address or enter a custom address.
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Finally, users are able to view a summary of their delegation information. Users have the ability to go back to adjust any submitted information, cancel the delegation setup, or complete the delegation by hitting the “Submit Delegation” button.
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Once completed, users will see their delegation was successful. They can then view the transaction information on the Subnet Explorer or return to Core Stake.
For a more detailed guide, check out this support article.
Validating AVAX with Core Web
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Head to core.app/stake and connect with your Core extension or Ledger
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Once connected, navigate to the Validate panel.
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To validate, AVAX will need to be present on the P-Chain. The current available balance will be displayed to the user, and if no AVAX is currently available, the options of transferring from the X or C Chains, swapping other C-Chain tokens, or buying AVAX will be available.
NOTE: To stake on an Avalanche mainnet validator, users need 2000 AVAX. As an alternative, users can delegate to a validating node for 25 AVAX.
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Next, choose a staking duration. A graph is present to represent the potential reward based on the duration that AVAX is staked.
NOTE: The minimum stake period for validating is 14 days for the Avalanche Mainnet.
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After choosing a validation period, users will enter the Node ID they want to stake their AVAX.
Reminder: Users must already have a node created and running to be able to validate it. If that node is not already established, please view these developer resources.
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After entering their Node ID, the user will choose the address where the rewards will be paid. Users can choose between their connected P-Chain wallet address or enter a custom address.
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Next, users will select the delegation fee that will be charged to the delegators when they delegate AVAX to this validator.
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Finally, users are able to view a summary of their validation information. Users have the ability to go back to adjust any submitted information, reset the setup, or complete the validation by hitting the “Submit Validation” button.
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Once completed, users will see their validation was successful. They can then view the transaction information on the Subnet Explorer or return to Stake.
NOTE: After approving the transaction, it may take a few minutes for the Staking to begin.
For a more detailed guide, check out this support article.
Staking AVAX on Core Wallet for iOS/Android
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Download Core mobile for iOS/Android.
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Once connected, navigate to ‘Stake’.
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Followed by inputting a valid amount to delegate, select ‘Next’.
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Next, set a staking duration.
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Lastly, users can access a summary of their staking information. Maintaining the flexibility to revisit and modify any entered details, cancel the delegation setup, or finalize the delegation process by selecting the Stake Now button.
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Upon completion, users will be notified of the successful delegation. Review the transaction details using the Subnet Explorer or return to the Stake Dashboard for further actions.
For a more detailed guide, check out this support article.
Conclusion
Staking on the Avalanche network is open to all holders, Core further simplifies this process by utilizing a comprehensive user interface and an on-the-go approach to AVAX staking and staking management. With no extra charges whatsoever, Core essentially lowers the barrier for crypto staking and opens the Avalanche network to even more people, boosting adoption for staking and strengthening even further. However, it is important to note that Core doesn’t offer any extra incentives to users and purely aims to bridge the gap between users and crypto staking.
If you’re ready to give Core’s Stake feature a try, download the Core extension on the Google Chrome Web Store and head to core.app/stake.
For an on-the-go simplified experience, download Core Wallet on the Apple App Store or Google Play Store.
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