Cosmos Delegation Tutorial (non-technical)
Delegate with a Smartphone or Ledger Nano S to Stake Capital
Welcome to this non-technical Tutorial on how to delegate your Cosmos tokens (ATOM) to Stake Capital. Here, you will find:
- How to Stake your ATOM with your smartphone via imToken
- How to Stake your ATOM with your Ledger Nano S via Lunie
- An FAQ section with popular questions
We will soon release a more technical tutorial for delegators who are familiar with the command-line interface.
Stake your ATOM from your smartphone
This tutorial will teach you how to stake ATOM from the imToken wallet, a multi-chain mobile wallet available on the App Store and Google Play at https://token.im.
If you need help setting up your wallet, imToken provides good video and text tutorials on this page.
imToken will give you an Ethereum and Bitcoin wallet by default, but they also support Cosmos (note: you only need to back one 12-word seed phrase to recover all your imToken wallets).
Step 1: Deposit your ATOM to your imToken wallet
Now that you have created your Cosmos Wallet, you can deposit ATOM to your Cosmos address from a crypto exchange or another Cosmos wallet.
Your address is displayed at the top of the screen (it starts with cosmos1.. ; see point 1 on screenshot below).
Step 2: Stake your ATOM to Stake Capital
Once you have received your ATOM, you can stake them by clicking on the Staking shortcut from the imToken home screen (point 2 below).
imToken will first ask for permission to use your public address, click confirm (point 3) and then navigate to the validators tab (point 4).
Next, scroll down to find Stake Capital in the list of validators (number 52) to delegate to Stake Capital.
- Click on Stake Capital (point 1 below)
- Click on delegate (point 2)
- Enter the amount you wish to delegate (you will need 0.005 ATOM to cover the transaction fees)
- Click next (point 3)
As shown on the third screenshot, ensure the validator address displayed for Stake Capital is indeed:
cosmosvaloper1k9a0cs97vul8w2vwknlfmpez6prv8klv03lv3d
Once you approve the delegation, you can safely return to the imToken home screen where you will see your ATOM successfully delegated and you will start earning your rewards immediately.
To undelegate, repeat the process but click on undelegate instead — see FAQ for more.
Stake your ATOM with a ledger nano S (non-technical version)
There are several ways to delegate ATOM from a ledger nano S. We will only share an easy and non-technical method here, and we will soon release an advanced version for technical users.
This method will combine Ledger Nano S and the Cosmos Web Wallet Lunie. You can learn more about Lunie on blog post featured by Cosmos here.
Note: With this method, your Cosmos private key resides inside your Ledger, and Lunie never has access to your private key.
Step 1: Install the Cosmos App on your Ledger
You will first need the Ledger Live app, which you can download from ledger’s website here: https://shop.ledger.com/pages/ledger-live
From the Ledger Live application, click on the Manager shortcut from the left Menu. This is where you need to go to install new applications and update your Ledger.
Next, click on the settings tab on the top right of the Ledger Live screen.
In the settings menu, activate the Developer mode (it is deactivated by default). This is necessary to install the Cosmos application on your ledger, because Cosmos is a new application approved by Ledger.
With the developer mode activated, you can go back to the Ledger Manager Menu, and search for the Cosmos App. Click Install to complete the process.
Step 2: Sign into Lunie with your Ledger and Cosmos App
Cosmos is not fully supported by Ledger yet, which is why we had to use the Developer mode. Therefore, your ATOM balance and address will not be showed inside Ledger Live. Instead, you need to go to https://lunie.io to view your Cosmos Address.
- Click on Sign In (top right)
- Click on Sign in with Ledger nano S
- Click Sign in (you need to have the Cosmos app open on your ledger)
Step 3: Find your Cosmos Address and send ATOM there
Once you are signed in, you can find your address at the top left of the Lunie home page. You can deposit ATOM to this address from a crypto exchange or another Cosmos wallet.
This address is derived from your Ledger, and is backed by the usual 24-word seed phrase from your Ledger.
Step 4: Stake your ATOM to Stake Capital
Once your ATOM have arrived, you can navigate to the Staking menu on the left of the screen.
Then go to the Validators page, and click on Stake Capital.
From the Stake Capital Validators page, click on Delegate. A pop up window will open: enter the desired amount to stake and click on the next button.
When you click on Next, Lunie will show you the fees associated with the transaction, and then ask you to connect your ledger to validate the transaction.
On your Ledger, you will be 9 pages to scroll through. When you reach the 10th page, you will see VIEW TRANSACTION and CONFIRM TRANSACTION. Scroll down with the right button to select the confirm transaction option, and then confirm by clicking both buttons on your ledger at the same time.
Congratulations, you have now staked your ATOM with Stake Capital!
FAQ
What does it mean to Stake ATOM?
Cosmos is a decentralised network with a native currency called ATOM and secured by a Proof-of-Stake consensus algorithm. In Proof-of-Stake, anybody can contribute to securing the network by staking, which is the process of locking your assets in a security deposit to prevent cheating. This is exactly like a house deposit when you rent: if you behave correctly, the deposit is returned to you, otherwise you will be financially penalised.
Token holders who participate in securing the network are financially compensated with newly minted ATOM (inflation) and network fees.
How much can I earn from staking?
The current gross return is 13.58% per year. You can find the latest estimation on https://stakingrewards.com/asset/atom
To run their infrastructure, staking providers charge a commission on the gross return. Stake Capital takes a market leading 8% commission, which translates in a net return of 12.5% per year for our delegators.
Are there any risks associated with bonding my tokens?
In Cosmos, when a validator misbehaves, both the validator and its delegators are financially penalised. This is why it is crucial to delegate your ATOM to validators with reliable infrastructures.
Different validators charge different fees. We have chosen 8%, which is enough to finance our operations and provide a highly reliable infrastructure (we have never been penalised on Cosmos).
Our track record extends beyond Cosmos being live, as we participated in Cosmos’ Game of Stakes and finished in the top 5 or top 10 (depending on the metric used) with a 100% perfect uptime record.
Therefore, if you want to maximise your returns, it is sometimes better to delegate your ATOM to a validator with slightly more fees but that will never be penalised. It is our mission to protect your ATOM and we have invested in the best possible infrastructure. You can read more about our infrastructure here.
Can I transfer my ATOM to another validator?
You can transfer your stake to another validator with the ledger nano S through the Lunie interface. This feature is currently not supported in imToken.
Go to the Stake Capital staking page, click delegate, and you will see two options: either delegate from your wallet (i.e. new delegation), or delegate from where you have already staked your ATOM (i.e. transfer delegation).
When can I undelegate my tokens?
You can undelegate your tokens anytime, but there is a 21-day cool-off period before you can transfer your undelegated tokens. This is to protect the network from attacks. You will not earn rewards during the cool-off period.
