As a ZenGo customer, you can earn staking rewards simply by holding your Tezos (XTZ), similar to earning interest in a savings account.
What is Tezos staking?
Staking lets crypto asset holders earn extra income by contributing to the network security of a proof-of-stake (PoS) asset. By contributing (delegating) the voting rights associated with your Tezos to a validator node (baker), you increase the chances of the baker to validate transaction blocks and in return earn rewards which they then share with their delegators.
How do I start earning Tezos rewards?
Earning rewards with your Tezos is easy. Simply:
- Make sure you have some Tezos (you can purchase in ZenGo or send to yourself from another wallet or exchange)
- Tap on Tezos from the My Wallet screen
- Tap on the Earn button
- Tap on the Activate button
That's it! You're now earning Tezos staking rewards.
How and when do I get paid my rewards?
In Tezos there's initial waiting period of approximately 33 days before receiving your first reward payment. After that, you should receive a reward payment from the baker approximately every 3 days. These three-day periods are called "reward cycles".
What does "Variable APR" mean?
For Tezos staking, "Variable APR" is the current annual reward rate (similar to an annual interest rate) for that point in time. This rate may vary with every reward cycle.
ZenGo gets up to date APR information from MyTezosBaker.
What does "Annual Reward" mean?
The annual reward is simply a calculation of your current balance multiplied by the current APR. Since your balance and the current APR can fluctuate, this is just an estimate (if nothing changes) of how much you would earn in rewards on an annual basis from any given point in time.
Do I have to pay a fee to earn staking rewards?
There are two fees that you should be aware of:
- Transaction fee: A small fee, usually a few cents, to activate your Tezos staking address. After that, your address will remain activated for staking and you won't have to pay any additional fees.
- Baking fee: Allocated to bakers for running the infrastructure to sign and publish new blocks on the blockchain. This in effect is what generates the staking rewards that are then paid back to you directly. The current baking fee is 8% of the staking rewards.
Who does the baking?
Currently we've partnered with Figment Networks (https://figment.network) for all of our Tezos baking. In the future we plan to allow our customers to choose from several different options.
Are there any risks in staking?
Since you don't need to part with your assets in order to delegate them, your funds always remain in the safety of your ZenGo wallet. This means that validators do not have access to your funds, and you earn the rewards with no counterparty risk.
I don't own any Tezos. How can I participate in staking?
You can purchase Tezos directly in the ZenGo app, or receive Tezos to your ZenGo address from another wallet.