If you're interested in staking XTZ through your Temple wallet, then this guide is for you! We'll walk you through step by step on how to delegate your XTZ on Tezos and receive rewards in return.
Tezos, staking, and Temple Wallet…
As you know, dear Racers, it's always important to go back to basics. For those who may not know yet, Tezos is a layer 1 blockchain that enables decentralized applications through smart contracts. It operates on a mechanism called Liquid Proof of Stake (LPoS), meaning transactions are approved by validators (stakers). These individuals have locked a certain amount of XTZ in the network to make it function.
📎 Check out our comprehensive overview of the Tezos blockchain.
Moving forward, there are two types of validators on Tezos: "bakers" and "delegators." In the first case, one needs a minimum of 6,000 XTZ to participate and create their own validation node. However, this represents a significant amount, and that's why Tezos allows anyone to contribute by becoming a "delegator." In short, a user can delegate their XTZ (without a minimum limit) to a "baker" who takes care of staking them on their behalf!
📎 Don't miss our complete guide on XTZ staking on Tezos.
Most wallets compatible with Tezos allow you to do this easily with just a few clicks, including Temple Wallet! In a few words, Temple is one of the most widely used digital wallets on Tezos. It allows for easy interaction with all applications built on this blockchain, holding NFTs, and diving into ecosystems like Stables.
Tutorial: XTZ staking on Temple
Create a Temple wallet
To start, you need to create a Temple wallet. Nothing too complicated; just go to the Temple website and download the Web extension version suitable for your browser. Then, you'll be prompted to create a new wallet or import an existing one. In the first case, make sure to note the 24-word mnemonic phrase and keep it securely.
📎 Need more information? Check out our article on how to create a Tezos wallet on Kukai.
Deposit XTZ on Temple
The logical next step is to hold XTZ in your Temple wallet. You have two options: either buy directly within your wallet interface or transfer from a centralized cryptocurrency platform.
For the first option, go to your wallet and click on the "Buy" button. In the window that opens, click on "Buy with Debit/Credit Card" and select the fiat currency that suits you (typically, the euro), then enter the amount you want to spend on buying XTZ.
Next, you have the choice between two options: Moonpay or Utorg. Choose one of them and follow their website's instructions. You'll need to choose the payment method: credit card or bank transfer. Note that in the first case, the operation is instantaneous, while it may take a few days in the second case.
For the second method, simply send XTZ from any centralized exchange platform to your Temple wallet. Click on the "Receive" button, then "Copy to Clipboard" to copy your wallet's address.
Finally, go to a centralized exchange, select your XTZ, and withdraw them. In the address-related field, paste your wallet address (previously copied from Temple) and enter the amount to send. Wait a few minutes, and you should receive your XTZ!
Delegate your XTZ
Now we've reached the last step of this tutorial, the one you're really interested in: how to stake your XTZ on Temple. It's very simple; just go to your wallet's Temple extension and click on the "Delegate" button that appears next to the Tezos cryptocurrency.
Don't forget to carefully read the displayed information: the waiting time for delegating your tokens, the frequency of reward payments, the staking rate's evolution, etc. Then click on the "Delegate" button to confirm your intention.
First, you need to enter the amount of XTZ to stake. Then, you'll notice a search bar to find the baker of your choice. If you don't have one in mind yet, feel free to use the discovery feature offered by Temple. You can filter by popularity, fees, remaining space, or yield. Be vigilant about fees: they range from 5 to 15% of your rewards on average. As an indicative note, Everstake is the top baker on Tezos even though it applies a 15% fee.
Choose one of them and click on it, then confirm the delegation by clicking again on "Delegate." You just need to confirm the transaction in your wallet!
There you go, your XTZ is staked with a validator and will start earning you income in about thirty days. In the "Activity" section, you can find information about the last delegation transaction.
📎 Want to explore Fantasy Games? Here's how to buy XTZ and start your Stables adventure!
FAQ: Frequently Asked Questions
Is XTZ staking risky?
The process of delegating your XTZ is not risky in itself. The biggest danger lies in storing your assets: you'll need to be vigilant and prefer cold wallets like Ledger or Cool Wallet.
What should I do with my rewards?
As long as you don't withdraw your positions, you don't have to do anything! Your rewards are automatically restaked every 3-day cycle.
What is the frequency of rewards?
The first reward comes after 7 cycles, i.e., 24 days. After that, it is distributed every cycle, so every 3 days.
📎 Want to learn more about Stables? Check out all our blog articles.
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