Secure the Zilliqa
network

What is staking?

Staking allows you to earn rewards for holding tokens on a blockchain network.

It requires users to "stake" their tokens with nodes to provide certain services to the network. In return, you will get block rewards.

Staking derives its consensus from a mechanism called Proof of Stake (PoS). A consensus mechanism means the way that a blockchain network agrees on valid transactions.

You will frequently see PoS, stake, and staking used interchangeably.

How does staking benefit me?

Staking ZIL is a great way to put your ZIL to use and earn rewards while contributing to the network.

The annual percentage return (APR) for staking depends on the total amount of ZIL in circulation at any given time.

What is a seed node?

A seed node is a specific node that logs the history of the blockchain network. It allows other seed nodes to locate and synchronise the blockchain's data so more nodes can join.

Zilliqa uniquely relies on a combination of Proof of Work (PoW) and Practical Byzantine Fault Tolerance (PBFT). It further uses staking to incentivise "seed nodes" to join the network.

PoW and PBFT help Zilliqa:

• Enhance its network security
• Create a low carbon footprint
• Solve scalability and slow transaction speeds

Explore our mining page and learn how Zilliqa uniquely combines PoW mining to prevent Sybil attacks and PBFT as our consensus mechanism.

What is a Staked Seed Node Operator (SSN)?

You delegate your tokens to an SSN, helping them become an active node on the network if they have a minimum of ten million ZIL staked.

As a token holder, you benefit from SSNs because they will handle the technical work whilst you earn rewards for delegating your "stake" to them.

What is a Delegator?

A delegator is a user that allocates their staked tokens to a seed node operator. Delegation is an eco-friendly way for ZIL holders to power the network and earn rewards for their service.

What SSN operator should I choose?

Make sure to check your SSN provider before you start staking, as they’ll have different commission rates and incentives on offer. APR rates are likely to fluctuate, so bear that in mind, too.

What happens if a SSN operator fails?

If a seed node goes down, it will not impact your stake. You will not earn any rewards, but your stake remains intact, so your funds will remain safe.

Can I switch SSN providers?

Yes - you can change your seed node operator at any time.

Why is there a minimum lock-up period for my stake?

The lock-up period (aka bonding) is approximately 14 days. This incentivises longer-term holders to stake ZIL and encourages token holders to secure the network,

Want to change the unbonding period?

If you want to change your unbonding period, please submit a governance change with a Zilliqa Improvement Proposal (ZIP).

What is the minimum amount of ZIL you require to stake?

As a delegator, you must stake a minimum of 10 ZIL to ensure that the gas you require to withdraw the reward doesn't outweigh the incentive.

Quick tip: This also applies to staking back rewards for compounded returns. We recommend that you wait until you have earned at least 10 ZIL before re-staking. The gas required to stake your initial ZIL or stake back your rewards will be roughly 3-6 ZIL.

Gzil and Governance

Governance ZIL (gZIL) was launched on 14 October 2020 and stopped minting on block # 1483713.

Holding gZIL gives a user the power to vote on Zilliqa’s future direction.