Tezos Baking Options
In this article I want to briefly go through three options for Tezos investors, that want to increase their holdings by participating in Tezos Proof of Stake.
Option 1 — Delegating to a Tezos Delegation Service
This is the easiest option. Your tokens never leave your wallet and you don’t have to post your own safety deposits — your delegation service will do that for you. Delegating is available to all Tezos token holders no matter how small amount you are holding. You simply have to activate your wallet and choose a Tezos Delegation Service, that you like.
Most delegation services are currently charging service fee, which is between 10 to 15% of the reward.
At the time of writing annualized ROI (Return on Investment) for the cycle 33 was around 8.4% (net reward calculated after the 15% Delegation Service fee).
Option 2 — Investing with the Tezos Delegation Service (Bond Pool)
Second option for Tezos investors is joining the bond pool. The advantage is that you are earning more than double what you would earn by delegating. Disadvantage is that you need to trust your Delegation Service with your tokens, because tokens need to be stored in the Delegation Service address (so they can be used for bonds/safety deposits when baking).
At the time of writing annualized ROI (Return on Investment) for cycle 39
is around 17.5% (net reward since you are not paying any fees).
More information Happy Tezos Bond Pool can be found on the following link
Happy Tezos Bond Pool. Minimum amount for the participation is 5 000 XTZ.
Option 3— Baking yourself
If you have more than 10 000 XTZ you can bake yourself. This option requires some technical know-how, stable internet connection with a backup and ideally also independent power backup, because you should be online 24/7/365 (depending on how much are you baking with, which affects how often will you bake and endorse blocks).
More information can be found on the following links:
It’s a baker’s life for me by Arthur Breitman
How to build a Mainnet Node by tezoscommunity
Tezos Technical FAQ by tezoscommunity
If you don’t want to setup the Tezos Node you also have an option to use BakeChain created by Stephen Andrews (creator of TezBox Wallet). There were some issues including double baking and missing endorsements & blocks, so please as always — DYOR (Do Your Own Research).
Disclaimer:
We are running Happy Tezos Delegation Service.
Contact
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info@happytezos.com
