Staking Decred is one of the best ways to earn rewards while helping the network stay secure and decentralised. Decred, or DCR, is a community-driven cryptocurrency that combines the strengths of both Proof-of-Work (PoW) and Proof-of-Stake (PoS) systems. This unique mix ensures that no single group can control the network or make changes without the community’s approval.
When you stake your Decred, you lock your coins to get voting tickets that allow you to take part in major decisions about the network’s future. These tickets are randomly selected to vote on new proposals and verify mined blocks. In return, you earn a share of the block rewards, with a massive 89% going to PoS voters, making staking highly rewarding.
By staking Decred, you not only earn regular returns but also play a direct role in shaping the project’s growth. It’s an active, fair, and transparent way to support Decred’s long-term vision.
How to Stake Decred (DCR)?
Staking Decred (DCR) allows you to participate in its hybrid Proof-of-Work (PoW) and Proof-of-Stake (PoS) consensus system while earning rewards. The staking process involves locking your DCR tokens to purchase tickets that grant voting rights in network decisions. Let’s break down the complete staking process into detailed steps so you can start earning rewards confidently.
Acquire DCR Tokens
To begin, you need to purchase DCR from a trusted cryptocurrency exchange that lists it. Some popular options include Binance, Bitvavo, and Bittrex.
Once purchased, transfer your DCR to a wallet that supports staking and ticket purchases. Keeping your tokens in an exchange wallet will prevent you from participating in staking. Choose a secure, non-custodial wallet where you control your private keys.
Choose a Compatible Wallet
Decred offers an official desktop wallet called Decrediton, which provides full staking functionality. You can download it from the official Decred website.
Alternatively, you can use other wallets that support ticket purchases and connections to Voting Service Providers (VSPs). Before selecting one, confirm that the wallet enables both staking and VSP integration, ensuring a seamless staking experience.
Select a Staking Mode: Solo or Via VSP
Decred offers two staking options depending on your technical comfort level.
Solo Staking
Solo staking gives you full control over your funds. You handle ticket purchasing, voting, and node management. However, this option requires you to keep your wallet online 24/7. It suits advanced users who prefer independence and have the technical setup to maintain uptime.
VSP (Voting Service Provider) Staking
If you prefer simplicity, staking via a VSP is more convenient. A VSP manages the online voting process on your behalf without holding your funds. You still control your DCR, while the service ensures your tickets vote correctly and on time.
Buy Tickets
In your Decrediton wallet, navigate to the “Staking” or “Tickets” tab. You can then:
- Choose how many tickets you wish to buy.
- Select your VSP if you’re using one.
- Set the transaction fee and expiry preferences.
The ticket price fluctuates automatically every 144 blocks to maintain a balanced staking pool. Always check the current ticket price before confirming your purchase.
Wait for Ticket Maturity and Voting
After you buy tickets, they enter a maturity phase of approximately 20 hours. Once matured, your tickets become “live”, meaning they’re now eligible for voting.
When your ticket gets selected to vote, you earn a staking reward directly in your wallet. If a ticket expires before voting, you get your original DCR refunded, though without the reward.
Claim and Reinvest Rewards
After voting, your rewards automatically appear in your wallet. You can either hold these DCR tokens or reinvest them to buy more tickets.
Decrediton allows you to enable automatic ticket purchasing, which reinvests your rewards automatically. This feature ensures your staking remains consistent and continuously compounds your earnings without manual effort.
Popular Video Guides on Staking Decred (DCR)
Best Places to Stake Decred (DCR)
Here’s where you can stake your Decred tokens easily:
Decrediton is the official desktop wallet for managing and staking Decred (DCR). It lets users purchase “tickets” that lock their DCR, allowing them to vote directly or delegate voting rights to others. The staking process secures the network and rewards participants for their contribution. The lock-up period varies, usually averaging around 28 days but sometimes extending up to 142 days, depending on when the tickets get selected for validation.
Pros:
- Gives users full control over their private keys and funds.
- Enables direct participation in Decred’s on-chain governance.
- Offers the option to delegate votes for flexibility.
- Integrates securely with the official Decred network for staking.
Cons:
- Requires technical understanding to set up and operate correctly.
- Needs the wallet or node to stay online for continuous participation.
- Staking periods vary, making reward timing unpredictable.
Atomic Wallet is a multi-asset, non-custodial wallet that allows users to store, exchange, and stake a variety of cryptocurrencies, including Decred (DCR). It integrates an in-built staking interface, letting users earn an estimated annual yield of around 8.16%. The wallet runs on a decentralised framework, giving users complete control of their private keys. Its intuitive design and cross-platform support make it a convenient choice for managing crypto portfolios and staking securely.
Pros:
- Offers direct DCR staking with competitive annual yields.
- Features an easy-to-use interface suitable for all experience levels.
- Provides complete control of private keys for enhanced security.
- Supports multiple assets and staking options within one platform.
Cons:
- Requires users to follow a ticket-based staking process.
- Yield percentages can fluctuate depending on network conditions.
- Staking involves agreeing to the wallet provider’s specific terms.
Staked provides a non-custodial staking service that allows users to delegate their Decred (DCR) tickets securely without giving up ownership of their assets. It handles the voting infrastructure through the official Decred Voting Service Provider (VSP) mechanism, ensuring reliable participation in governance. Users can easily connect their wallet, acquire tickets, and track the ticket lifecycle from immature to live and vote or expire stages with minimal manual effort.
Pros:
- Enables non-custodial staking where users retain control of their DCR.
- Simplifies the staking process through a guided setup and wallet connection.
- Manages all uptime and voting responsibilities on behalf of users.
- Supports transparent tracking of the entire ticket lifecycle.
- Integrates smoothly with Decred’s official VSP network.
Cons:
- Charges service fees for handling staking operations.
- Users must wait through the ticket maturity and voting periods.
- Requires a minimum DCR balance to participate effectively.
- Limited direct control over the technical aspects of node management.
Benefits of Staking Decred (DCR)
Staking Decred (DCR) offers more than just monetary rewards. It allows you to take part in the network’s growth, enhance security, and influence decision-making while earning consistent returns. Decred’s hybrid Proof-of-Work (PoW) and Proof-of-Stake (PoS) model combines the strengths of both systems, creating a secure and decentralised ecosystem. Here’s a detailed look at the main benefits of staking DCR.
Earn Consistent Passive Income
Staking DCR provides a reliable way to earn passive income. When you lock your tokens in the form of tickets, you participate in validating blocks and receive rewards once your ticket votes. On average, the annual return varies between 7% and 9%, depending on market activity and ticket demand. This steady yield enables you to grow your holdings while contributing to the network’s overall efficiency and integrity.
Participate in Governance Decisions
Decred gives every staker a voice in shaping the project’s future. Each staked ticket serves as a vote that allows you to influence protocol upgrades, funding proposals, and network changes. This governance model creates a fair, community-led decision-making process where every participant has real influence rather than relying on centralised authorities.
Strengthen Decentralisation
Staking promotes greater decentralisation within the Decred ecosystem. When more users stake DCR, control spreads across the network instead of concentrating in a few hands. This balance between miners and stakers ensures that no single entity dominates the system, maintaining fairness and long-term network health.
Contribute to Network Security
Your staked tokens help secure the blockchain against malicious activities such as double-spending or attacks. As a stakeholder, you validate transactions and confirm blocks, which keeps Decred’s ledger accurate and tamper-proof. This involvement strengthens the hybrid consensus model, making the network safer and more transparent.
Flexible Staking Options
Decred offers flexible staking choices to suit different preferences. You can stake solo, which gives you complete control over your wallet and tickets, or you can use a Voting Service Provider (VSP) if you prefer a more convenient method. Both options are non-custodial, meaning you maintain full ownership of your funds at all times.
Potential for Long-Term Value Growth
Staking DCR reduces the available supply in circulation because staked coins remain locked temporarily. This limited supply can increase demand, potentially driving price appreciation over time. When combined with steady rewards and voting rights, staking Decred becomes both a practical and strategic long-term investment choice.
Frequently Asked Questions
What Is the Role Of A Voting Service Provider (VSP) In DCR Staking?
A VSP allows you to delegate your ticket’s voting rights without requiring your wallet to stay online. You retain full control of your funds; the VSP simply votes on your behalf when your ticket is selected. It’s ideal if you cannot maintain continuous uptime. Picking a smaller VSP helps maintain network decentralisation and minimise reliance on large providers.
Which Wallets Support Decred Staking?
Staking DCR requires a compatible wallet, such as Decrediton (the official desktop wallet) or another wallet supporting ticket purchases and delegation. Your wallet should allow you to choose a Voting Service Provider (VSP) if you don’t wish to keep your machine online 24/7. Ensuring full wallet functionality is vital before commencing staking.
What Happens After I Buy A Ticket For Staking DCR?
Once you purchase a ticket, it goes through several stages: it is first in the mempool, then after mining, it becomes ‘immature’ for roughly 256 blocks (around 20 hours), after which it becomes ‘live’. When live, your ticket may be randomly chosen to vote, on average every 28 days, but could take up to 142 days. After voting or expiry, your funds and reward are returned.
How Does Decred’s Hybrid PoW/PoS Model Affect Staking?
Decred uses a hybrid model combining Proof-of-Work (PoW) mining and Proof-of-Stake (PoS) voting. When you stake via tickets, your role is to vote on blocks proposed by miners and governance decisions. This helps maintain network integrity. Your ticket essentially gives you a voice in protocol changes and security matters, unlike pure PoW systems, where only hardware miners decide.
What Should I Plan For Before Committing To DCR Staking?
Before staking DCR, ensure you are comfortable with having funds locked for an undetermined period and that you select a trustworthy wallet and provider. Keep a backup of wallet keys. Understand ticket price fluctuations and the staking lock-up, as it may affect liquidity. Finally, maintain accurate records, as participating in governance and earning rewards may have tax implications in your jurisdiction.
