Akash Network Staking Overview
Akash Network (AKT) is the native utility token of the decentralised cloud computing marketplace Akash Network, which allows users to rent out their unused computing resources or access them at a lower cost than traditional cloud providers. Staking AKT is a way of securing the network and earning passive income by delegating tokens to a validator, which helps the network reach consensus and prevents attacks.
If you are an investor in AKT and want to generate passive income while contributing to the network, staking might be the right choice for you. Follow this tutorial to learn how to stake your AKT and start earning rewards.
How to Stake Akash Network (AKT)
Step 1 - Get A Compatible Wallet
The first step is to get a wallet that supports the token and delegation to validators, such as Keplr or Cosmostation. These wallets can be downloaded as browser extensions or mobile apps. After downloading, create a new account or import an existing one using your mnemonic seed phrase or Ledger device. Remember to set a strong password and back up your seed phrase in a secure location. Your wallet address and balance will be displayed on the main screen of the wallet.
Step 2 - Buy Or Transfer AKT
AKT can be purchased from various exchanges such as Kraken, KuCoin, Gate.io, Osmosis, or Junoswap. To do this, you need to create an account on the exchange or DEX, deposit funds, execute your order, and withdraw your AKT to your wallet address. Make sure to select the correct network (Akash Network) on your wallet and confirm the transaction before waiting for it to be processed and confirmed by the network.
Step 3 - Choose A Validator And Delegate
To delegate your AKT, you can browse the list of validators on the Akash Network page or on staking platforms such as Smartnodes or Staking Rewards. Look for validators with a good reputation, performance, uptime, and commission rate. Once you find a validator you like, click on their name or profile and stake or delegate your AKT. Enter the amount you want to delegate and set a gas fee for the transaction. Confirm the transaction and wait for it to be broadcasted and confirmed by the network. You will start earning rewards based on the network’s inflation rate and transaction fees. Check your wallet balance to ensure that the delegation was successful.
Also read: Akash Network Prices Live
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Best Places To Stake Akash Network (AKT)
Bitpanda
Bitpanda is a leading cryptocurrency platform in Europe that allows users to buy, sell, and stake cryptocurrencies in a simple and user-friendly way. To stake AKT on Bitpanda, you need to create an account, deposit or buy AKT, and go to the Savings section. Select Akash Network, choose how much AKT you want to stake, and confirm the transaction. You will start earning rewards automatically every day based on the network’s inflation rate and transaction fees, with a current annual reward rate of around 10%.
Pros
- Bitpanda offers a simple and user-friendly interface for staking AKT and other tokens.
- There are no lock-up periods or penalties for withdrawing your tokens when you stake with Bitpanda.
- You’ll receive rewards for your assets each week based on the network’s inflation rate and transaction fees.
Cons
- Bitpanda is a centralised platform that holds your private keys and controls your funds. This means you’re trusting Bitpanda to secure your assets and process your transactions, and you must comply with their terms and conditions, which may change over time.
- Bitpanda does not allow you to choose your own validator or switch to another one. You have to delegate your AKT to the Bitpanda validator, which may not be the best or most reliable one on the network.
- Bitpanda charges a commission fee of 10% on your staking rewards, reducing your net return. The current annual reward rate for staking AKT on Bitpanda is about 6 – 8 %, while the average reward rate on the network is about 7%.
Cosmostation
Cosmostation is a wallet that supports Akash Network and other Cosmos-based chains, enabling you to delegate your AKT to any validator on the network and track their performance. To stake AKT on Cosmostation, download the app or browser extension, create or import your account, back up your seed phrase, and navigate to the Staking section. Pick a validator, delegate your AKT, and confirm the transaction to start earning rewards. The current annual reward rate for staking AKT on Cosmostation is approximately 10%.
Pros
- Cosmostation supports Akash Network and other Cosmos-based chains, allowing you to manage multiple tokens in the same wallet and switch between networks easily.
- You can delegate your AKT to any validator on the network and compare them based on their commission rate, performance, reputation, and other factors. You can also switch to another validator anytime if you’re not satisfied with your current one.
- Cosmostation enables you to participate in network governance by voting on proposals. You can view the details of each proposal and cast your vote using your wallet.
Cons
- As a non-custodial wallet, Cosmostation puts the responsibility of securing your private keys and assets on you. If you lose your mnemonic seed phrase or expose it to unauthorised parties, you may lose your funds permanently.
- Cosmostation enforces a 21-day unbonding period when you undelegate your AKT, which means you cannot withdraw your tokens or use them for other purposes during that time.
- Cosmostation also follows the network’s parameters for slashing, which means that you may lose some of your staked AKT if your validator acts maliciously or negligently.
Keplr
Keplr is a multi-chain wallet that supports Akash Network and other Cosmos-based chains, allowing you to delegate your AKT to any validator and participate in governance by voting on proposals. Staking AKT on Keplr currently offers an annual reward rate of approximately 10%.
Pros
- Keplr supports Akash Network and other Cosmos-based chains, making it easy to manage multiple tokens on one platform.
- With Keplr, you have the freedom to delegate your AKT to any validator on the network and monitor their performance and reputation. You can switch to another validator anytime if you’re not satisfied with your current one.
- Keplr allows you to participate in governance by voting on proposals that affect the network, giving you a say in the future of Akash Network. You can view the details of each proposal and cast your vote using your wallet.
Cons
- Keplr is a non-custodial wallet where you are responsible for securing your assets and transactions. Losing access to your device or password without a backup of your seed phrase may result in permanent loss of account and funds.
- When you undelegate your AKT from a validator, Keplr follows the network’s parameters, which require a 21-day unbonding period before you can withdraw your tokens.
- Keplr also follows the network’s parameters for slashing AKT. If your validator commits a fault, such as double-signing or censoring transactions, you may lose some of your staked tokens.
Benefits Of Staking Akash Network (AKT)
- Staking AKT helps secure the network and prevent attacks by voting for validators who maintain the blockchain and verify transactions.
- It allows users to participate in governance by voting on proposals to improve the network and manage critical parameters.
- It provides a default mechanism to store and exchange value, and acts as a reserve currency in Cosmos’ ecosystem, enabling users to swap AKT with other tokens using DEX.
- Staking AKT rewards users with passive income based on the network’s inflation rate and transaction fees, with an annual reward rate of about 6-8%, and users also get a share of the total network spend.
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Frequently Asked Questions
What is staking Akash Network (AKT)?
Staking Akash Network (AKT) refers to the process of locking up your AKT tokens and delegating them to one of the validators on the network. It will help secure the network, participate in governance, and earn a passive income in the form of rewards based on the network’s inflation rate and transaction fees
How much can I earn by staking Akash Network (AKT)?
The amount you can earn by staking Akash Network (AKT) varies depending on how much AKT you stake and for how long. Online calculators like Staking Rewards or StakingCrypto can help you estimate your earnings based on the current reward rate and price of AKT.
What are the risks of staking Akash Network (AKT)?
Staking AKT carries risks such as market volatility, limited liquidity due to a 21-day lockup period, and the potential for penalty if validators act dishonestly or if the network is compromised. Choosing a reliable validator is crucial to mitigate these risks.
How can I unstake or withdraw my Akash Network (AKT)?
To unstake AKT, use the same wallet you used for staking, like Keplr or Cosmostation. Access the staking section, choose Akash network, locate your validator, and click Unbond. After a 21-day lockup, you can withdraw your AKT to your wallet or transfer them elsewhere.
