Tezos is one of the most decentralized blockchains, with currently 384 active bakers (validators) and 106,811 delegators. Its staking ratio is above 75%. As Tezos is smart contract blockchain using Proof-Of-Stake (POS), its staking ratio needs to be compared with the other smart contract POS blockchains:
Source: Statista - March 24, 2022
The only comparable blockchains in staking ratio are Solana, Cardano and BNB Chain. Ethereum 2.0 is far away with less than 8% of total supply staked. Tezos offers similar staking rewards as Solana, i.e., around 5.8%. The major difference is the market cap, which is much smaller for XTZ than for SOL. Therefore, there is more room for growth for XTZ than for SOL. It is unlikely that XTZ will compete with ETH. However, XTZ could be worth investing in:
- Staking is quite easy and does not require any unbonding period.
- Tezos is a community-run blockchain which perfectly works for DeFi and NFTs.
- Tezos is investing into play-to-earn applications which look promising, like DOGAMI.
How to stake Tezos?
It is the most interesting part of it, since staking comes without any constraint. An easy way to make it is through Kukai wallet, by proceeding as follows:
- Buy Tezos on a centralized exchange like Binance.
- Go to https://wallet.kukai.app/ and ADD ACCOUNT (by clicking on "+" on top of the page).
- Transfer your XTZ from the exchange (e.g., Binance) to your Kukai public address (starting with tz, click on "COPY ADDRESS" on top of the page).
- Once you have received your XTZ coins on your Kukai wallet, click on STAKING and choose your baker to STAKE your coins (no minimum amount).
- When you first start staking, it will take roughly 5 weeks to receive your first rewards. After this, you can expect rewards about every 3 days.
By buying XTZ everytime it is a bit low or simply through a DCA (Dollar Cost Averaging) process, you can accumulate and receive more & more rewards, which could be a good bet for the future. Note: please DYOR and look at the alternatives which might also be of interest, e.g., SOL, AVAX, ATOM or EGLD.
Below a few referral links to earn more cryptos...
- Elrond: earn $10 EGLD
- Legion Network: earn $5 LGX
- Helium Staking: 10% referral discount
- Helium Rent: earn HNT by renting a shared hotspot