Everything you need to know about Staking Tezos inside of your FEX wallet.
Staking Tezos tokens is a great way to earn passive Tezos income. You can view it as earning interest on your crypto holdings. With some assets, staking means you agree to lock up your tokens for a certain period of time, during which they are unspendable. However, this is not the case with Tezos. You can spend your Tezos whenever you choose.
By staking your Tezos, you actively support the Tezos network by allocating resources to it and contribute to the stability of the Tezos network. In return for your support, you earn Tezos tokens as a reward.
What actually happens when I stake my Tezos?
In order to stake your tokens, what you are really doing is delegating your XTZ address (and the tokens your address holds) to a so-called “baker”. The Tezos bakers validate and approve transactions on the Tezos blockchain. The more tokens that are 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 baker validates, the more money they earn. From the earned rewards, they give back to all the people who delegated their tokens to them. This is how you earn your interest.
Can I choose the amount I want to stake and is my balance spendable while it’s staked?
When you stake your Tezos, you are actually staking your Tezos address. This means you can’t choose how much to delegate to the baker. It is all of your Tezos balance or nothing, as you are delegating your address to the baker. You can still perform normal transactions whilst your Tezos is staked. When it is time to receive your rewards, a snapshot will be taken and your current balance at that time will be used to calculate your reward.
Which baker will I be delegating my funds to?
When you stake your Tezos inside of FEX, you will be supporting our partner Everstake.
If you would like to keep up with how Everstake is going to vote, you can see their latest news by checking out their blog.