The Tezos (XTZ) Coinbase Staking Experiment
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The Tezos (XTZ) Coinbase Staking Experiment

By Thomas Wolf | wickedthewolf | 6 May 2020


Last Updated: 6-08-2020


This one took a while to begin writing about; I had to wait for my Tezos to sit in my Coinbase account for over a month so that way I could build a buffer of time to start seeing staking rewards, a definite upset for anyone looking to invest in Tezos - patience is required, initially.  This is also an ongoing review of how I feel Coinbase is handling the staking of their XTZ delegate's accounts.

Now, I already profited off of this due to the Bitcoin market correlation and current spike, but I still wanted to see what would happen with this one over time.  I love the idea of a token that makes interest off itself, in a sense.  XTZ is ranked at #10 in popularity on Coinbase, currently.

I was advised the smallest amount of XTZ to stake with is 10 tokens.  So, I started with just over that.  Currently, 10.064556 XTZ.

I want to give this "proof of stake" protocol a chance as paying for gas is outright painful sometimes... I'd rather be paid for staking/holding.

So, Tezos 101:
When you hang onto your XTZ tokens you can "delegate" the account/s owned and holding XTZ to validators, and depending on how much is in those accounts, how well it is received to the XTZ network, and how the validator (in this case, Coinbase) handles allocations and payments of the staked rewards which will decide how well you are awarded for securing the platform via staking.

In Coinbase, this process is automatic and the current listed (and subject to change randomly) staking reward is an estimated annual percentage of return, currently listed at 4.9%.

It is difficult to find places that pay above 5% APR; that is a cut off for many sites and rewards above that are often paid in fishy tokens, etc.

So, in short, you could do fairly well staking Tezos.  Or, it could be a serious joke if your validator pays poorly at their whim.

I am going to record the process of them paying me and let you know how that goes!

The beginner holdings, what I would call my staking baseline:
Tezos Baseline

The latest of six staking rewards (I had a tiny amount of XTZ before buying 10).  I just wanted to start here; not all of the tokens have computed yet and I've seen a series of small XTZ rewards like this for the last month or so.

Soon, I should start seeing larger rewards.  So far, I have received 6 of these smaller rewards while waiting for the total 10+ XTZ to begin staking.  They came in at 0.000489 0.000483, 0.000494, 0.000501, 0.000376, and 0.000376 equalling 0.004185.
Staking Reward 1

I saw a few more rewards around 0.000375 and finally saw this come in yesterday (took about 40 days):
SR@

Now the rewards are much larger which would incentivize one to keep more money in XTZ, I believe this is worth about 0.01c USD.

What are your thoughts on XTZ?  I look forward to putting out an honest review on Coinbase staking.  I am also still learning about XTZ as a whole so feel free to drop some knowledge on me, I am aware Coinbase/exchange staking is controversial which is why I wanted to test it myself.

I've begun staking in Atomic Wallet but will not start releasing a comparison of the two for at least 45 days due to the staking reward waiting period.  Rewards are now coming in regularly (expecting another today) and are slightly larger in size, here's 5/17/2020:
5-17

5/18/2020:
5-19

Seeing an increase is a relief!  Time to stake more for larger earnings!

Here are my current holdings as of 9:00 AM CTZ on 5-22-2020:
XTZ 5-22-20
XTZ itself isn't doing terrible although it did feel the shock of the recent Bitcoin drop.


Update 6/08/2020:  A lot going on lately, but here's a status update.  Some larger payments but not large enough.  Moved XTZ to Atomic Wallet and am waiting for the staking to begin paying out.  I'll be upgrading to a Ledger Nano X shortly and will be comparing my experiences with all 3.  Even if all logs do not show here, I am keeping screenshots, emails and such at all times.  The market is up:
T1

I added 0.3 XTZ after this and have more coming, but BAT is doing so well I dare not touch into my holdings.  It's either Bitcoin or USD, or it doesn't spend these days.  Here are my recent staking awards from Coinbase:
T12

Progress.

-Thomas Wolf




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Thomas Wolf
Thomas Wolf

I am a cryptocurrency advocate, a STEM undergraduate student, a nature enthusiast, a survivalist, a DIY specialist, and I'm a little crazy at times.


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