Cosmos / ATOM Delegation Guide

Hey Cosmonauts!

Stake your ATOMs to earn yield with https://app.unagii.com/stake/cosmos!

Some important notes about Cosmos Network:

• New ATOMs are created every block and distributed to validators and delegators participating in the consensus. This provides an incentive for ATOM holders to put their tokens at risk to secure the network.
• The main 2 type of risks associated with delegations are: i) Validator uptime risk — Stakes will be slashed by 0.01% if your chosen validator miss more than 95% of any consecutive 10,000 blocks; ii) Malicious action by validator — For now, the only way to be slashed due to malicious activity is to Double sign. This will result in a 5% slash on all stakes for the malicious validator.
• The number of new ATOMs created per block is variable and depends on amount of ATOMs currently staked in the network. If less than 2/3 of the total ATOM supply is staked, the annualized inflation will gradually increase towards a ceiling of 20% annualized inflation of the total supply.
• If more than 2/3 of the total ATOM supply is staked, the annualized inflation will gradually tend towards the floor of 7% annualized inflation of the total supply.
• Once Inter-Blockchain Communciation (IBC) Protocol is enabled, different types of tokens can be whitelisted on Cosmos Network to be used for payment of transaction fees. Validators and delegators will get to share these fees (minus a network tax) based on their stake.
• The network tax will go into a reserve pool that will be governed by the existing governance system of Cosmos Network. We expect the reserve pool to be used to increase the security and value of Cosmos Network.
• It takes 21 days to un-bond from Cosmos Hub (21 days to show up in your wallet). You also do not receive rewards for these ATOMs, but will still be subjected to slashing risk associated with your chosen validator.
• You are able to re-delegate your current bonded ATOMs to any other validators without any cost (less transaction fees to re-delegate). Some reasons why you might want to re-delegate could be: i) Lower fees; ii) Better support and services, and iii) Differing viewpoints on governance issues.
• You will be automatically unbonded if: i) Your validator gets slashed (to protect you from further slashing); ii) Your validator stake went below the top 100 threshold; iii) Your validator went below its minimum self-delegation quantum.
• Remember that you can withdraw your rewards at any time and delegate them again to compound your yield. However, there will be a small transaction fee charged for withdrawal and delegation, so plan it wisely!

Phew, that’s a pretty long list of important notes.

Now let’s go through how you can delegate your ATOMs:

1. Go to https://app.unagii.com/stake/cosmos
2. Connect your wallet. You can access your ATOMs via Ledger or Keplr wallet. For users who wants to purchase ATOM, head over to any centralized exchange such as Kraken, Binance, Kucoin or FTX to buy the ATOM, then withdraw it out to your Ledger or Keplr wallet (highly recommend).
3. Click on Stake, then input the amount of ATOM you want to stake. Remember to leave some ATOM so that you can pay fees to claim rewards or unstake your ATOM (0.01 ATOM is sufficient).
4. Sign the transaction. A popup should appear if you are using Keplr wallet. If you are using ledger, the ledger should prompt you to sign the transaction.

For more information, refer to this post: https://www.unagii.com/blog/stake-cosmos-network-atom-intro

Ending Note

We hope that this guide has been useful for all Cosmos fans on their journey to bootstrap the Cosmos Hub! StakeWith.Us is certainly looking forward to validate Cosmos Network together with you!

Disclaimer: This guide is made available for educational purposes only, to give you general information and understanding on how to delegate on Cosmos Network. By using this guide you understand that there is no client-servicer relationship you, the writer and/or StakeWith.Us. By delegating with us, you acknowledge that we are not liable for any losses on your investment.

StakeWith.Us is a secure Staking-as-a-Service provider for leading blockchain projects. Put Your Crypto to Work — Hassle Free.

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