Everything you need to know about Cosmos Staking using ATOM inside of your FEX wallet.
What is Cosmos Staking and how can I benefit from it?
Staking your ATOM is a great way to earn passive income in the form of staking rewards. Rewards are paid out in ATOM. You can view it as earning interest on your crypto holdings. With Cosmos, Staking means you agree to lock up an amount of your ATOM that you choose for a certain period of time, during which they are unspendable. However, you can unlock your ATOM whenever you choose.
By Staking your ATOM, you actively support the Cosmos network by allocating resources to it and contribute to the stability of the Cosmos network. In return for your support, you earn ATOM as a reward!
What actually happens when I Stake my ATOM?
In order to stake your ATOM, what you are really doing is delegating an amount of your ATOM to a so-called “validator”, this makes you a “delegator”. The Cosmos validators validate and approve transactions on the Cosmos blockchain. The more ATOM that is delegated to them, the more transactions they get to validate and the more powerful they become. By delegating your tokens to them, you basically “vote” for and signal your trust in them.
The more transactions a validator validates, the more money they earn. From the earned rewards, they give back to all the people who delegated their ATOM to them. This is how you earn your interest.
How does Staking work?
When you Stake your ATOM, you are able to choose how much of your ATOM you want to delegate to the Validator. You can stake any amount of ATOM for which you immediately start accumulating rewards. During this time, you will only be able to perform transactions with your unstaked amount of ATOM inside your wallet.
Please note: Staking new ATOM auto-claims any unclaimed rewards, which will result in a network transaction fee.
How does Unstaking work?
When you decide to unstake your ATOM, again you can choose the amount you want to unstake. The amount you choose to unstake will now become unbonding and you will need to wait 21 days for you to be able to use it again.
When you unstake your ATOM, if you have any unclaimed rewards they will be auto-claimed.
Please note: When you unstake some ATOM this amount becomes unbonding. This means that from any given Validator you can at most unstake 7 times in a 21 day period (if you try more the unstake will fail). You must wait for one of the previous unstaking entries to expire.
Which Validator will I be delegating my funds to?
When you Stake your ATOM inside of FEX, you will be supporting our partner Everstake.