ICONSENSUS is the decentralization of the ICON network! This event consists of ICONists (ICX holders) using their ICX to vote for Public Representatives (P-Reps) to run the ICON network in a decentralized manner. These votes will be done through staking with the different P-Reps, resulting in rewards for the ICONists for their dedication to the ICON network. Pre-vote staking will commence on August 26th, with the election of P-Reps happening a month later. The staking rewards will range from 6%-36% annually (depending on the amount of ICX staked on the network). For an overview of voting and what different ICONists are looking for in their P-Reps, please see our previous article. You can see a full list of the current P-Rep candidates on the ICON community webpage.
These rewards are very enticing. Add the fact that ICONists have a vote in who runs the network, and you can see why so many people are excited about ICONSENSUS! How must ICONists prepare for ICONSENSUS? Voting will be done through the ICONex official wallet (works with the Ledger Nano S HW wallet as well). In order to prepare for voting, ICONists should move their ICX from exchanges into the ICONex wallet. The ICONex wallet is the official ICON wallet and is offered as 3 different software products, with links and instructions available from ICON’s webpage:
- Chrome Extension (for desktop)
- iOS App
- Android App
Additionally, you can store your ICX on your Ledger Nano S, following this guide. ICON will be releasing instructions on how to vote prior to the August 26th pre-election voting. Once this happens, you’ll have your ICX in a secure wallet and be ready to vote for your favorite P-Rep candidates, and be rewarded with ICX delegation rewards!
There may be exchanges that offer staking, however, I would caution against this for the following reasons:
- Centralized exchanges do not give you the private keys for your ICX. Thus, you don’t always have positive control of your ICX: it is only as good as the exchange, and even large exchanges can go away in an instant. This is where the phrase “not your keys = not your crypto” comes from.
- If you stake with an exchange, there’s no guarantee you will be able to vote for the P-Reps you support and also receive the full rewards. You will likely be a part of a large pool from which the exchange stakes, voting for P-Reps that help meet the exchange’s goals. It is vital for the success of ICON that ICONists pay attention and vote for P-Reps who support ICON and will help it grow.
- If you hold your ICX on an exchange, then there is more potential ICX to be sold on that exchange. Withdrawing ICX from the exchange ensures less supply. If supply remains the same and demand increases, price goes up. (just as banks lend money from those who deposit, many exchanges do the same).
In conclusion, we have exciting times ahead with staking on August 26th, P-Rep voting a month later, and subsequent decentralization of the ICON network. It is very important for ICONists to learn about P-Reps and vote for multiple P-Reps who they think will help the ICON network. As we prepare for staking, stay tuned to ICON official channels for instructions on how to stake. In the meantime, I would encourage everyone to get your ICX off exchanges and to use the ICON official wallets, and Ledger Nano S HW wallet for maximum security.
Disclaimer: This is not investment advice. Cryptocurrency is inherently risky and is not for everyone: do your own research and make decisions based on your own opinions. I make no guarantee of the safety or reliability of any of the wallets mentioned in this article and am not responsible for any losses from using them or any purchase or use of ICX.