What Is CHEQ and How to Stake It?
The cheqd network is aiming to give control of digital data back to the people and organizations who really own it. Instead of having information about you littered across the Internet and controlled by centralized organizations, for example, your data will reside with you, in your digital wallet — this is known as self-sovereign identity (SSI). The cheqd network then allows third parties to quickly and securely verify your identity while fully maintaining your privacy. Even further than most decentralized identity protocols, cheqd is also building out payment rails and commercial models for SSI, bringing real value to this much-needed technology.
The native token of the cheqd network, CHEQ, is used for the network’s governance, and also allows issuers, receivers, token holders, and node operators to pay each other for digital credentials without giving up privacy and security. In short, the network creates a payment system for digital identity verification that makes SSI commercially viable. In this guide, we’ll walk you through the process of staking CHEQ tokens with Everstake, so you can simultaneously support the cheqd project and earn rewards.
Step 1: Create a Wallet
Since the cheqd network is built on Cosmos, you will need an IBC-enabled wallet for Cosmos in order to stake your CHEQ tokens. You can use the Keplr wallet that offers the ability to stake tokens, use blockchain apps, and manage multiple tokens in one wallet.
1. Visit the website to install the Keplr wallet. The wallet is available as a Chrome browser extension, Android app, or iOS app. For the purposes of this guide, we’ll be using the browser extension.
2. Click Install Keplr for Chrome to be taken to the Chrome Web Store.
3. Install the extension from the Web Store.
4. Open the extension from the dropdown menu in your browser bar.
5. Sign in. You’ll be given a choice to sign in with Google or create a new account. Either way, you’ll be prompted to give your new account a name (this can be changed later) and create a password.
If you sign in with Google, you’ll next be asked to enter your Google account information to sign in.
If you create a new account, you’ll be provided with a mnemonic seed phrase. Make sure to write your seed phrase down and keep it safe as it will allow you to recover your account if needed (for example, if you lose your device). Never share your seed phrase with anyone else as it will give them access to your wallet.
Once you’ve created your new Keplr account, you’ll need to enable the CHEQ token to see your balance and stake your tokens. To do this, make sure you’re signed in to the Keplr wallet on your browser (not the mobile app).
1. Visit the cheqd dashboard at Omniflix.
2. Click Connect in the upper right corner. You will see a pop-up asking you to approve adding cheqd-mainnet-1 to your Keplr wallet.
3. Click Approve.
4. Open the Keplr extension in your browser and click the drop-down menu at the top where it says “Cosmos Hub.”
5. Scroll down below “Beta support” and select cheqd.
You will now be able to see your CHEQ balance and have the option to deposit or send CHEQ tokens.
Step 2: Top Up Your Wallet
There are two ways you can buy CHEQ to add to your wallet. First, you can use Indacoin to buy directly with a credit card. Second, you can use one of the following exchanges to buy CHEQ using another cryptocurrency that you already own:
- Uniswap, or
Please note that the tokens available on Uniswap and BitMart are ERC-20 (Ethereum-based) tokens, meaning you will have to convert them to Cosmos-based tokens using the Gravity Bridge before they can be staked. So, to keep things simple, we’ll just cover how you can buy CHEQ tokens using Osmosis.
- Make sure you have enough cryptocurrency in your wallet to cover your purchase and fees.
- Visit Osmosis.
3. Click Connect Wallet.
4. In the pop-up window select Keplr Wallet. A second pop-up will appear asking you to approve the connection. Click Approve.
5. You will see your OSMO balance on the lower-left corner of the screen.
If you want to swap another token, you have to deposit them to Osmosis. Go to the menu on the left and click Assets, find the token you need, and click Deposit. Indicate the amount of tokens to deposit and click Deposit. Make sure to leave some tokens in Keplr for the transaction fee, otherwise, they cannot be deposited. Click Approve.
6. Return to the Trade page.
7. Use the From dropdown to select the currency you will be using to make your purchase and enter the amount you wish to spend.
8. Use the To dropdown to select CHEQ.
9. Click the Swap button to initiate the exchange.
10. Another pop-up will ask you to approve the transaction. Click Approve.
11. Go back to the Assets page to check your balance in CHEQ tokens.
12. Now you need to withdraw them to your Keplr wallet. Click Withdraw.
13. Indicate the amount of tokens to withdraw and click Withdraw. Click Approve.
You now have CHEQ in your Keplr wallet ready to be staked.
Step 3: Stake CHEQ
To stake your CHEQ, you’ll need to return to the cheqd dashboard. Unless your wallet is already connected, click the Connect button in the upper right-hand corner. Then follow these steps:
1. Click the Stake button at the top of the page. This will take you to a list of validators with whom you can stake your tokens. The list will show each validator’s status, voting power, and the validator’s commission on your staking rewards.
2. Search for Everstake in the validator list and select the corresponding Delegate button.
Why delegate your stake to Everstake?
Everstake is the biggest decentralized staking provider in the world, trusted by over 625,000 users. We use enterprise-level hardware to run over 8,000 nodes for 50 blockchain networks including Solana, Сosmos, and Cardano, and we employ over 100 experts across the world. Additionally, we’re heavily involved in the development of complex blockchain products, such as Metaplex, Portal, and Everlend.
Beyond the blockchain, we use our reach and voice for non-profit initiatives including co-initiating Aid For Ukraine, a charitable organization that raises funds within the crypto community for the benefit of Ukraine’s humanitarian efforts, and Save Ukrainian Culture, an initiative that seeks to safeguard the country’s cultural heritage.
3. In the pop-up window double-check your selected validator, then enter the number of tokens you wish to stake.
4. Click Delegate. You will now begin receiving staking rewards.
Step 4: Monitor Your Rewards
You can monitor your rewards by returning to the cheqd dashboard at any time. Here, you’ll be able to see your available tokens, staked tokens, rewards, and unstaked tokens (tokens that were previously staked and are now in the 14-day unbonding period).
Rewards are distributed continuously for every block on the blockchain, so there is no wait to begin earning. You can withdraw your rewards at any time by clicking the Claim button. Claimed rewards will be added to your available balance. If you choose, you can compound your rewards by restaking them using step three above.
When you stake the CHEQ token you are supporting the future of self-sovereign identity (SSI) and the ability of individuals to regain control over their personal data. The process may seem a bit daunting at first, but after you’ve completed the above steps for the first time, you’ll find it’s actually quite easy.
If you wish to learn more about staking CHEQ or still have questions, please check out this helpful FAQ.
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