Elrond staking is ready, here is everything you need to know
As discussed in the previous post, the Elrond mainnet bootstrapping will happen over three phases. Phase 1 is about staking ERD tokens via an Ethereum contract in order to achieve necessary economic deterrents against potential economic attacks.
This represents a service of securing the launch of the Elrond network which will be rewarded in a roughly similar fashion as mainnet staking. This complex process will be safely automated via MetaMask in this phase.
Here are the important required steps:
- Deposit ERC20 ERD tokens in a wallet that you can use with MetaMask
- Follow our official announcements channels
- Stake your ERD in the smart contract
Important notice: Only one staking transaction per unique ERC20 address is possible. If you want to stake multiple times you will need a different address each time.
Have everything prepared? Excellent. Skip straight to Step 3 below.
Here’s a detailed view of each step:
Step 1 — Deposit ERC20 ERD in a MetaMask enabled wallet
First, ERC20 ERD can only be obtained via withdrawal from Binance.com.
To convert your BEP2 ERD tokens see below:
- If you hold ERD tokens outside of the Binance.com exchange, first deposit them to Binance.com, then withdraw ERC20 ERD from Binance
- Purchasing ERD tokens directly on Binance is also possible, via BNB, BTC or USDT pairs
Second, log into Binance.com and navigate to ERD withdrawals: https://www.binance.com/en/usercenter/wallet/withdrawals/ERD
Here are the steps you need to follow:
1. Select ERD in the Coin field
2. Check the ERC20 box
3. Input your ERC20 wallet address
4. Specify the amount
5. Press submit
6. Check that your Metamask wallet received the ERD ERC20 tokens.
Open Metamask in expanded view by clicking the fox icon and clicking on Expand View:
Click on “Add Token” and then “Custom Token.
Paste the address of the ERC20 ERD token in the “Token Contract Address” field and click “Next”
The ERC20 ERD token address: 0xF9986D445ceD31882377b5D6a5F58EaEa72288c3
Final step: deposit enough ETH (between 0.004–0.1 ETH or more) in the wallet to be able to pay for the fees.
There will be 2 different transactions: Authorize and Stake. Each will require up to 250.000 gas (max limit). Depending on the gas price you select, you will need gas price x 250.000 x 2 x 10^-9. For a gas price of 10 gwei, you will need 0.005 ETH. For a gas price of 50 gwei, you will need 0.025 ETH.
Congratulations! Your wallet should now look something like this:
Step 2 — Follow our official announcement channels and stay safe!
Stay safe by following the information in the official guides, only via our official communication channels. The Elrond team will never approach you directly via direct message.
Official communication channels:
Telegram Announcements: https://t.me/ElrondNetworkANN
Telegram Community: https://t.me/ElrondNetwork
The address of the staking page, time of start, and official guidelines will be deployed simultaneously on those 5 channels.
Step 3 — Go to https://elrond.com/stake and stake your ERD
- Sign into Metamask and select the correct wallet by 1. Pressing the “circle” icon and 2. Selecting the right wallet
- Go to https://elrond.com/stake. Carefully read the onscreen instructions and then press the “PRESTAKE NOW” button.
2. You will be redirected. On the following screen, press “Pre-stake”.
A Metamask pop-up will appear, asking for your permission to connect your wallet to staking.elrond.com. Press “CONNECT” to proceed.
3. Double-check that you are using a Metamask wallet, that the wallet you selected has ERC20 ERD in it, that you have ETH to pay for transactions (only checks you have non-zero ETH!) and that the address you are using was not used in the Elrond prestaking process before. Remember, a unique address can only be used once in the prestaking process.
5. There is a disclaimer on the next page that you are required to carefully read and accept in order to proceed. Press “I Accept” to continue.
6. Type in the amount of ERD you want to stake, without exceeding the amount you have in your wallet. The amount of ERD in your wallet is pre-populated by default. Press “Continue” to proceed.
7. Announce your stake by sending a transaction to the prestaking smart contract. You will get a Metamask prompt to allow staking.elrond.com to use XXX ERD from your wallet.
A Metamask pop-up will require your permission to spend ERD from your wallet. Press “Confirm” to continue. Important: no ERD is leaving your wallet at this step and your stake is not reserved.
Not seeing a pop-up? Check your browser for a “1” at your Metamask icon.
The transaction at Step 7 needs to complete successfully before moving on to Step 8. Wait for the Metamask confirmation popup, which should not take longer than 1–2 minutes, depending on Ethereum network load.
8. Now you can stake by pressing the “Submit stake” button.
A Metamask pop-up will ask you to confirm the transaction. Press “Confirm” to continue.
9. Congratulations, the prestaking process is complete. An Etherscan link to your transaction will be included in the Success message.
Check the status of the prestaking process and your accrued rewards by visiting https://elrond.com/stake
By now you should have completed all steps.
Let’s get the staking started!
Frequently asked questions
Why should I stake?
The Elrond blockchain brings 1.000 fold improvements over existing blockchains in terms of speed and cost. By helping us secure it, you are contributing to the launch of a game changing product. You will be rewarded for your service in a similar manner to our mainnet staking process and with very competitive returns.
What wallets are supported?
Any ERC20 wallet will work, as long as you own the private key or seed phrase, so they may be imported into Metamask. Cold storage devices such as Ledger or Trezor can also be used with Metamask.
Why use MetaMask?
The complex nature of the Elrond pre-staking process requires elaborate smart contract interactions. Metamask automates these interactions, thus reducing the room for error. Get it here as an extension for your (desktop) browser: https://metamask.io/
How much ETH do I need to pay for the staking transactions?
There will be 2 different transactions: Reserve and Stake. Each will require up to 250.000 gas (max limit). Depending on the gas price you select, you will need gas price x 250.000 x 2 x 1⁰⁹. For a gas price of 10 gwei, you will need 0.005 ETH. For a gas price of 50 gwei, you will need 0.025 ETH. Make sure you have at least 0.005 ETH.
Can I stake from my mobile device?
We advise participants in the staking process to use a laptop or desktop computer and browser compatible with the Metamask extension: https://metamask.io/
Who is eligible to stake?
Any MetaMask ERC20 wallet with ERD ERC20 tokens and sufficient ETH for gas fees, can stake into the smart contract.
Can I stake from the same address more than once?
No. The pre-staking smart contract only allows one transaction from one unique wallet. Due to the complex calculations that affect each unique deposit, it is not possible to correctly reward multiple transactions from the same wallet. Please use a different wallet address each time.
How much rewards can I earn if I stake?
You can earn up to 8% of your staked award after 90 days, for an annualized staking ratio of 32%. Please use our staking calculator (link) to determine the exact rewards, based on your desired amount & time of staking.
How are the rewards for staking calculated?
A reward mechanism is in place to incentivize staking as early as possible but also as much as possible. For more information, go to the following link and scroll down to “Competitive incentives aligning interests” https://medium.com/elrondnetwork/the-elrond-bootstrapping-process-2f2a7ea7cd89 or use the calculator here.
What amounts of ERD can be staked?
There is no minimum limit to the amount of ERD to be staked. The maximum limit per transaction is set at 500.000.000 ERD per tranche, or whatever is available in that respective tranche. You can use multiple transactions to stake your desired total ERD amount. Remember to use a unique address each time because you can stake only once using the same wallet address!
What are the minimum & maximum pre-staking periods?
ERD deposits will be locked for the first 30 days since the pre-staking period starts. After that, withdrawals are possible, with a 7 day unbonding delay, during which rewards are not accrued. There is no maximum period of pre-staking but we expect this phase to not exceed 90 days from the start of the pre-staking process.
How can I withdraw my ERD from the pre-staking contract? Can I withdraw anytime my stake?
Withdrawals are only possible 30 days after the start of the pre-staking process. There will be a 7 day waiting period for withdrawals, during which no rewards are accrued. Only withdrawals of the full amount you have staked are possible.
Where can I see the source code of the Smart Contract?
The Elrond Prestaking Smart Contract can be viewed in Etherscan at this address: 0xE9F97FCa1C8C1dDC6649104A6dBCD400D073A445
Was the Smart Contract audited?
Yes, we used several professional security firms to ensure our pre-staking contract works as intended and can’t be tampered with.
What is the address of the Smart Contract for staking?
The official Smart Contract address is (tba). Make sure you verify this address with the ones published in tandem in our official channels:
Telegram Announcements: https://t.me/ElrondNetworkANN
Why are there 2 steps to pre-stake?
You will be notified, through Metamask, to sign two transactions in 2 steps:
- First transaction is the Pre-authorization step, where you allow the pre-staking contract to access your tokens upto the provided amount
- Second transaction is the Stake step, where the provided amount of ERD tokens will be actually staked in the contract
Why are there 2 steps to withdraw?
First step involves expressing the intention to withdraw. Once this intention is executed through a first transaction sent to the Smart Contract, there will be no more additional rewards calculated from this point in time (all rewards accrued up to this point are still claimable). After 7 days have passed since the intention was recorded, a second transaction needs to be processed that will claim the initial amount staked and the rewards earned.
What is the connection between ERD-06 tokens on Binance Chain and ERC20 ERD tokens on Ethereum?
In preparation for the staking event, we will be swapping ERD tokens from BEP2 to ERC20. ERD BEP2 tokens will be burnt periodically on the Binance Chain and minted in the exact same amount on Ethereum. You can follow these actions by carefully checking our BEP2 token address, ERC20 tokenaddress.
What happens if I reserve a staking transaction but do not follow through with the 2nd step?
The “reservation” transaction only signals your intentions and is useful to authorize the next step in Metamask. No ERD is spent in the first step, no reservation is done in the staking contract.
Disclaimer: Nothing in this article or elrond.com website is an offer to sell, or the solicitation of an offer to buy, any tokens. Elrond is publishing this post solely to receive feedback and comments from the public. Nothing in this post should be treated or read as a guarantee or promise of how Elrond’s business or the tokens will develop or of the utility or value of the tokens. This post and elrond.com website outlines current plans, which could change at its discretion, and the success of which will depend on many factors outside Elrond’s control, including market-based factors and factors within the data and cryptocurrency industries, among others. Any statements about future events are based solely on Elrond’s analysis of the issues described in this post or elrond.com website. That analysis may prove to be incorrect.