Loom Network Staking Guide
.. also known as How-To-Plasma.exe.. The guide is focused on utilizing MetaMask and Ledger to interact with Loom Network’s PlasmaChain Dashboard. The Loom team is working hard on Trezor, Trustwallet and ImToken integrations — As usual, we will upgrade the guide once those options are available for use.
- Loom Network offers an annualized yield of 5%, 7.5%, 10% and 20% dependent on different lock-up period (2 weeks, 3 months, 6 months and 12 months — before deduction of validator fees).
- Each year, up to 20% of Loom’s remaining token pool will be set aside for block rewards.
- There is a fixed total supply of 1,000,000,000 Loom tokens. The Block Reward emission schedule and fixed token supply makes Loom tokens deflationary in nature.
More information on staking economics can be found here on their Medium post.
Before we begin, please ensure that the following pre requisites are met:
- You have a Ledger OR you have MetaMask installed on your browser’s extension;
- You should have some ETH tokens to pay transaction fees and ERC20 Loom tokens for delegation on either the Ledger or your MetaMask account;
- You understand how transfers between Ethereum and PlasmaChain works — you can visit here for more information;
- Ensure that you have log on to your MetaMask.
All done? Then let’s get on with our Plasma journey 😎.
Note: If you already have an existing account on PlasmaChain, please access the dashboard directly by inputting your seed phrase + log in via the mapped Ledger or mapped Metamask account. Thereafter, go to part 3: Delegate Your Plasma Loom Tokens to select your choice of validators. We hope that you can support StakeWith.Us!
1: Creating a PlasmaChain Account
Firstly, go to Loom Network’s PlasmaChain Dashboard.
For first time users, you will need to create an account on the dashboard. Click on New User to generate a Tendermint wallet address.
The dashboard will prompt you to record down your seed phrase.
Please record them down in a secure manner as it is the only way to re-access your wallet as a returning user. Click on Next to continue.
The dashboard will also test you to ensure you have secured your seed phrases. Fill in the required words and click on Create Account to proceed.
We cannot stop emphasizing how important this is — do not read on until you confirm that you have secured your seed phrase. The only way to re-access your wallet is through your seed phrase.
You will then be given 2 choices to login:
- Click on the left option to sign in via Ledger. You need to ensure your ledger is connected to your computer, and is on the Ethereum application;
- Click on the right option to sign in via MetaMask. You need to ensure that you have logged on your MetaMask.
If you have chosen the Ledger Option, you should see this:
Select the account that holds your Loom tokens (and some ETH) and click Proceed. You will also be prompted to sign the message on your ledger to map your PlasmaChain address to your ETH address.
If you have chosen the MetaMask option, you should see this:
Click Sign to map your PlasmaChain address to your MetaMask ETH address.
Once done, you will be taken to the landing page of the PlasmaChain Dashboard.
Congratulations! The Transfer Gateway will now keep track of deposit and withdrawal activities on both your Ethereum and PlasmaChain addresses.
The landing page comes with 5 tabs on the left: Validators, Block Explorer, My Account, My Delegations and Rewards. The dashboard should show the amount of ERC20 Loom tokens you have in your Ethereum address.
2: Depositing your ERC20 Loom tokens from Ethereum Account to Your PlasmaChain Account
In order to delegate Loom tokens to a chosen validator, you will first need to deposit Loom tokens onto PlasmaChain. Insert the amount you want to deposit, and click Deposit.
If you are using MetaMask, a popup should appear. Click Confirm to approve the transfer of ERC20 Loom tokens to PlasmaChain.
If you are using Ledger — you will be prompted to Sign a message via your ledger to approve the transfer of ERC20 Loom tokens to PlasmaChain. Sign it!
Once the first transaction go through (you can check by clicking on the TX link), you will be prompted to Confirm (on Metamask) or Sign (via Ledger) again to deposit the ERC20 Loom tokens into PlasmaChain.
Wait for it. Sit back and relax. Make a coffee/tea. Your funds are being deposited through the Transfer Gateway😎.
With the fund balances updated on the dashboard, you can now delegate your funds to a validator of your choice, or withdraw them back to your Ethereum address.
3: Delegate Your Plasma Loom Tokens
Click on Validators on the left tab to see the list of validators available for delegation. Select your choice of validator by clicking on the the individual validator tab.
From there, you can click Delegate to vote for a particular validator. Fill up the amount of Plasma Loom tokens to delegate and drag the sliding bar to select the lock time and bonuses (see picture below). Click on Delegate again to proceed.
A successful delegation message should momentarily flash on your screen.
The Updated Amount section should show the amount of Loom tokens you just delegated. Give the PlasmaChain Dashboard some time to reflect the Amount Delegated and the Timelock.
Some important notes about delegation:
- The Timelock will refresh every time a new batch of tokens are delegated within the same period. For example, if you delegate for 3 month at t=0, and delegate again for 6 month when t=1.5 month, your total Timelock will become 1.5 month + 6 months = 7.5 month. You will receive the pro rata 3 month bonus for 1.5 month and full 6 month bonus for the 6 month period (assuming you don’t delegate again and let the Timelock run down).
- You are not allowed to delegate again using a shorter timelock. For example, if you are on 6-month Timelock, you will not be able to delegate again using 2-week or 3-month Timelock within the 6-month locked period.
- As such, we urge all delegators to delegate in lump sums to prevent unnecessary extensions on the Timelock.
- The Loom team is working on a solution to allow you to compound your rewards, and to delegate another batch of Loom tokens to the same validator.
- For now, reward cycles last 2 weeks each. You should aim to delegate your tokens right before a reward cycle ends to maximize your returns. If you delegate tokens to a validator in the midst of a reward cycle, your rewards will only start to accrue from the next reward cycle. For example, if you delegate tokens to a validator on day 1 of the 14 days, your rewards will only start accruing from day 15 to day 28.
- You have the option to redelegate your current Timelocked stake to another validator for any reasons (for e.g, if a validator increases their fees suddenly).
4: Check Your Current Delegations and Unclaimed Rewards
Delegation rewards are paid out automatically by the DPoS contract at the end of every election cycle, which last about 2 weeks each.
To check your current delegations, click on the My Delegations tab. It should show all the validators that you have delegated to, the amount delegated to each validator and the expiry time for the Timelock.
To claim your delegation rewards, click on the Rewards tab.
Some important notes about rewards:
- In the current DPoS release, your tokens will continue to earn base yield without bonuses after your Timelock goes to 0. For example, a delegator under the 3 month Timelock plan would only earn 5% p.a for the cumulative time period they remain delegated after the Timelock goes to 0. Delegators who are delegating for 2 weeks will not be affected by this.
- Hence, we urge all delegators who are intending to delegate longer than 2 weeks to set a notification after your tokens are unlocked to un-delegate and re-delegate in order to maximize your yield.
Notes on withdrawal of delegated tokens:
- You will only be able to withdraw your delegated tokens after the Timelock goes to 0.
- In order to withdrawal your tokens back to the Ethereum address, you will have to un-delegate your tokens through the individual validator page. Your tokens should shift from the Staked to PlasmaChain section once that is done.
- Thereafter, go to the My Account page to withdraw the tokens back to your Ethereum address.
We hope that this guide has been useful for all Loom fans on their journey to bootstrap PlasmaChain! We are certainly looking forward to validate PlasmaChain together with you!
Quick note: Remember that delegation is non-custodial, as validators are not able to spend your Loom tokens. You retain control over your tokens at all times.
P.S. my favourite part about the DPoS dashboard. You might want to restart the whole delegation process (log out of Metamask + dashboard, clear cache, and re-log in again) if you find Loomy running for a long time..
Disclaimer: This guide is made available for educational purposes only, to give you general information and understanding on how to delegate. By using this guide you understand that there is no client-servicer relationship you, the writer and/or StakeWith.Us.
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