How to stake and receive rewards for Aleph Zero (AZERO) cryptocurrency
There are two roles in staking for Aleph Zero: validator and nominator.
Validators generate and verify blocks on the network.
Nominators select validators and participate in their rewards by staking their own AZERO.
Both validators and nominators must meet certain requirements:
- Validators: stake at least 10,000 AZERO, have a stable internet connection, and provide a dedicated server.
- Nominators: stake at least 100 AZERO and choose a trustworthy validator.
To stake on Aleph Zero, follow these steps:
- Create an Aleph Zero wallet.
The wallet has a Stash account for storing funds and a Controller account for staking operations.
- Acquire AZERO.
AZERO can be purchased on overseas or decentralized exchanges.
- Select Nominator or Validator from the Staking tab.
Specify the Stash and Controller accounts and enter the amount of AZERO to stake.
- Wait until the next era to become a validator or nominator.
Eras are updated every 24 hours.
- Once staking begins, rewards can be requested from the Payouts tab.
Rewards can be claimed independently for each era.
How to receive rewards for Aleph Zero
Aleph Zero distributes staking rewards by issuing new AZERO at an annual inflation rate of 30%.
Of this, 10% is deposited into the Treasury and the remaining 90% is distributed to validators and nominators.
Points to note when staking Aleph Zero!
The following are the points to note when staking Aleph Zero:
- Staking requires two accounts: Stash account and Controller account.
The Stash account is where you store the tokens you want to use for staking, and the Controller account is used to perform staking operations. It is recommended to have separate addresses for Stash and Controller accounts.
- Tokens that are staked will be locked until they are unstaked.
To unstake, you need to wait for 14 eras (approximately 14 days). During the unstaking period, rewards are not generated.
- Staking rewards must be claimed every era (approximately 24 hours).
If you do not claim the rewards, they will expire. Rewards can be claimed up to 84 eras in the past.
- If you engage in fraudulent behavior while staking, you may be subject to a penalty known as “slashing.”
In slashing, some or all of your stake may be confiscated.
- To become a validator, a minimum stake of 1000 AZERO is required.
To become a nominator, a minimum stake of 10 AZERO is required.
- The reward rate for validators and nominators varies depending on factors such as inflation rate and stake ratio.
The current estimated reward rate is 12.05%.
- When selecting a validator, it is important to consider factors such as fees and performance.
Validators with high fees or low points may have lower rewards.
