How-to: Stake

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How-to Delegate to our Pool

What is Staking?

Some blockchain protocols allow participants to earn additional cryptocurrency by contributing to the network. Staking is an easy way to earn passive income and support the stability of the blockchain network.

There are two major kinds of transaction validation for blockchains. There are more but we will simplified explain only two in this guide.

Proof-of-Work

You know proof-of-work from cryptocurrency like Bitcoin and Ethereum. The transactions on this kind of Blockchain will be  verified by mining. The work itself is arbitrary. Bitcoin involves repetitions of SHA-256 hashing algorithms. However, the “winner” of a hash round aggregates the transactions from the mempool and enters them into the next block. Since the “winner” is chosen at random in proportion to the work done, everyone on the network has an incentive to act honestly and record only genuine transactions.

At the end, the miner gets an reward for any correct hash.

Proof-of-Stake

In the consensus protocol proof-of-stake, transactions are not validated with the help of miners but instead with staked ADA on a pool. The tokens are randomly selected periodically, like in a lottery. The pool receives a corresponding reward, which is then distributed evenly among the delegators. Usually this is 5% per year.

In simple terms, the more ADA is staked on a pool, the more likely it is to produce a block. But there are some other factors. For example, if the saturation level is too high on a pool, then the gains are reduced to counteract centralization.

Coins in the Wallet

The ADA coins used for staking never leave your wallet. While staking, you earn rewards in a way that is similar to interest in a savings account. You can move or unstake your coins at any time.

 

How to Stake your Coins on our Pool

First of all you need ADA to stake. How to buy it you can learn here

The most secure alternative to stake your ADA goes through the official wallet of Emurgo Yoroi. The addon is available for the standard browsers Chrome, Edge, Firefox, Opera, as well as for Android and iOS.

After the installation you select here “simple”.
Then go to this screen and select “create wallet” and then chose the platform cardano.

Choose a secure password. With this password you authorize any kind of transactions.
Once you are ready, click on the button “create a personal wallet”.

In the last step, please carefully write down the words in the recovery phrase. Pay attention to upper and lower case as well as the order. Write them down on 1-2 pieces of paper and keep them safe. Once you have done this, click on “confirm”.

Congratulations you have your first Cardano wallet!

Delegate to our Pool – WOOD Forest Stake Pool

Under the delegation list you will find all current pools. Enter the Ticker WOOD or our name Forest Stake Pool in the search to find our pool. Then click on “delegate” and you will be part of our pool and can look forward to your return.

We are looking forward to you!

 

Plant a Tree – Safe the World!

 

 

 

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