Are you curious about staking Dymension (DYM) and earning rewards while supporting a powerful blockchain ecosystem? Dymension is a unique, modular platform designed to handle high-speed, scalable blockchain applications known as RollApps.
With its Delegated Proof-of-Stake (DPoS) consensus, Dymension stands out by allowing users to stake DYM tokens, which helps secure the network and power its operations. As a DYM holder, staking allows you to earn potential rewards and participate in governance decisions, giving you a say in the platform’s future.
Dymension’s mission to tackle the blockchain scaling trilemma makes it a project with exciting potential, especially for those eager to engage with blockchain innovation. Ready to explore staking on this efficient and scalable platform? Let’s dive into how you can stake your DYM tokens
How To Stake Dymension (DYM)?
Staking Dymension (DYM) tokens allow you to earn rewards while supporting the security and governance of the Dymension network. This comprehensive guide will walk you through each step to stake your DYM effectively. Let’s dive into the process, from setting up your wallet to monitoring your staking rewards.
Step 1: Setting Up Your Keplr Wallet
The first step in staking your DYM tokens involves creating a secure Keplr wallet. Keplr is a widely used wallet that integrates seamlessly with the Dymension network, offering a simple and efficient user experience.
Download And Install Keplr
- Visit the Keplr website and download the Keplr browser extension.
- Once downloaded, follow the prompts to install the extension on your browser for easy access.
Create A New Wallet
- Open the Keplr extension, and click on “Create a new wallet.”
- Secure your wallet by creating a strong password and generating a recovery phrase. This phrase is crucial for wallet recovery, so store it in a secure, offline location.
- Follow the on-screen steps to finalise wallet creation, which includes confirming your recovery phrase. Avoid storing this phrase digitally to reduce security risks.
Verify And Register Your Wallet
After setting up the wallet, confirm your recovery phrase as prompted by Keplr. This verification step ensures the security and readiness of your wallet for storing DYM tokens.
Step 2: Funding Your Keplr Wallet With DYM Tokens
Now that your Keplr wallet is ready, it’s time to add DYM tokens. This step includes purchasing and transferring tokens into your Keplr wallet.
Purchase DYM Tokens
- Buy DYM tokens from a supported exchange. Popular options include decentralised exchanges like Osmosis or centralised exchanges like Binance.
- Ensure you have the required funds in your exchange account to complete the purchase.
Transfer DYM Tokens to Keplr
- In the Keplr wallet, navigate to the “Assets” section.
- Select “Dymension” from the list and copy your unique wallet address.
- Return to the exchange where you purchased the DYM tokens, and initiate a transfer to your Keplr wallet using the address you copied. This transfer may take a few minutes to complete, depending on the network’s congestion.
Step 3: Accessing The Keplr Dashboard For Staking
With DYM tokens in your wallet, proceed to the Keplr dashboard to start the staking process.
Open The Keplr Dashboard
- Launch the Keplr extension and go to the main dashboard.
- Click on the “Stake” section, which will allow you to manage your DYM staking.
Search For Dymension in Staking Options
In the staking section, locate Dymension by typing it into the search bar. This will display all available validators for staking your DYM tokens on the Dymension network.
Step 4: Selecting A Validator For Staking
Choosing a reliable validator is essential for securing your staked DYM tokens and maximising rewards. The validator Imperator is a popular choice among Dymension stakers.
- In the Keplr dashboard, use the search bar to find “Imperator” or “Stride” under the list of Dymension validators.
- Verify the validator’s reputation and performance metrics to ensure you are selecting a trusted partner for staking.
Step 5: Delegating Your DYM Tokens
After selecting your validator, you can delegate your DYM tokens to start earning rewards.
- Click on the “Delegate” option next to the Imperator validator.
- Enter the amount of DYM you wish to stake. You can adjust this amount based on your preferences and risk tolerance.
- Confirm the delegation by clicking “Delegate,” and wait for the transaction to finalise. Your DYM tokens will now be securely staked with Imperator.
Step 6: Monitoring Your Staked DYM And Rewards
After successfully delegating your tokens, you can track your staking rewards and manage your staked amount through the Keplr dashboard.
- Return to the Keplr dashboard, where you can view your accumulated rewards, staking history, and validator performance under the “Staking” section.
- Keplr allows you to increase or decrease your staked amount as needed, making it easy to adjust based on your investment strategy.
Note: If you ever choose to unbond your staked DYM tokens, keep in mind there is a mandatory 21-day lock-up period. This delay ensures network stability and security, and you won’t have access to your tokens during this time. However, community governance may update this period as necessary to reflect the network’s evolving requirements.
Popular Video Guides On Staking Dymension (DYM)
Best Places To Stake Dymension (DYM)
Coinbase is a reputed cryptocurrency exchange, providing a simple and secure way to stake popular cryptocurrencies like Ethereum, Cardano, Tezos, Dymension, Cosmos, and Solana. By staking their assets, users can earn rewards while helping to secure the network. Coinbase’s clean and user-friendly interface makes it straightforward for both beginners and seasoned crypto enthusiasts to get started with staking. The platform also includes detailed educational content, guiding users on staking mechanics and helping them make confident, informed decisions with their investments.
Pros:
- Offers competitive APYs for staked assets.
- User-friendly design, great for all experience levels.
- Supports a diverse range of major cryptocurrencies.
- Includes comprehensive resources to learn about staking.
Cons:
- Transaction fees may apply to certain operations.
- Limited support for non-Pos tokens.
Founded in 2018, Bitget is a leading crypto exchange serving over 20 million users in more than 100 countries. The platform offers advanced trading options and is known for its high-profile collaborations, such as its partnership with football star Lionel Messi in 2022. Bitget’s staking platform stands out with principal-guaranteed mining, providing a low-risk way to earn returns on various cryptocurrencies. It credits daily interest and allows flexible staking and redemption without fees, making it an accessible choice for users aiming to grow their crypto assets.
Pros:
- Daily interest credited starting one day after staking.
- Flexible staking and redemption with no fees.
- Earnings are fully passed to users, with no platform cut.
- Principal-protected staking, reducing risk.
Cons:
- Not available in all countries.
- Some users report account freezing issues.
Kraken is a well-established cryptocurrency exchange known for its secure and user-friendly staking services, making it accessible for users looking to earn passive income on their digital assets. Offering both flexible and bonded staking options, Kraken provides the flexibility to stake various cryptocurrencies directly on the platform. Flexible staking allows for instant withdrawal of principal and interest, while bonded staking requires a waiting period of 3 to 28 days. With auto-compounding interest paid twice weekly, Kraken enables users to grow their holdings with ease, though certain staking services remain restricted in specific regions.
Pros:
- Offers both flexible and bonded staking options.
- Provides auto-compounding twice a week, enhancing earnings.
- Secure and user-friendly platform for new and experienced users.
- Accessible directly on Kraken’s website and Kraken Pro app.
- Supports multiple staking assets with reliable interest rates.
Cons:
- 15% commission fee on staking rewards.
- Limited staking availability in specific regions, including the US.
- ETH staking rewards do not auto-compound.
Benefits Of Staking Dymension (DYM)
Unlike other investment forms, staking doesn’t require constant trading or time-intensive strategies. Instead, it allows you to put your tokens to work in a way that benefits both your portfolio and the Dymension ecosystem. Let’s explore the key benefits of staking DYM tokens.
Earn Rewards For Passive Income
Staking DYM tokens provides you with a consistent flow of rewards in the form of additional DYM tokens. These rewards act as a steady income stream, allowing you to grow your holdings over time without additional investment. The more DYM you stake, the higher your rewards, which compounds your earnings and boosts your long-term returns. For investors focused on long-term growth, staking offers a reliable way to increase your assets while maintaining a hands-off approach.
Strengthen Network Security
Staking DYM tokens contributes directly to the security of the Dymension network. Stakers validate transactions and support the blockchain’s operations, which strengthens the network against potential security threats. By staking your tokens, you play a crucial role in ensuring the network’s integrity, making it a safer space for all users. This aspect of staking offers more than just personal gain; it creates a more secure environment for everyone in the ecosystem.
Contribute To Decentralisation
Staking promotes decentralisation by allowing a diverse set of participants to contribute to the network’s functions. This decentralisation enhances Dymension’s resilience, as no single entity holds complete control over its operations. With more stakers involved, Dymension becomes more robust and less susceptible to central points of failure, ensuring that the network remains open and fair for all users.
Participate In Governance
Staking DYM tokens grants you a say in important network decisions. As a staker, you gain governance rights, which allow you to vote on proposals and changes within the Dymension ecosystem. This empowers you to help shape the future of the platform, from policy updates to potential upgrades. Having a voice in these decisions ensures that the network evolves in a way that aligns with the community’s interests.
Hedge Against Inflation
Staking DYM tokens also serve as a hedge against inflation. By earning staking rewards, you offset the effects of inflation, as your holdings grow over time. The additional tokens you receive help preserve the value of your initial investment, protecting your assets in an inflationary environment. This feature makes staking a smart choice for those looking to maintain the purchasing power of their crypto investments.
Frequently Asked Questions
How Does Staking Work On Cosmos Chains Like Dymension?
Staking on Cosmos-based networks, including Dymension, involves selecting a validator and delegating your tokens to them. As a delegator, you lock your tokens through a delegation transaction, which counts toward the validator’s total stake. By doing so, you support the network’s stability and security while potentially earning rewards based on the validator’s performance.
Is There A Minimum Token Requirement For Staking Dymension?
Yes, staking on the Dymension network generally requires a minimum amount of DYM tokens. This threshold can vary depending on the platform you’re using to stake but is essential to qualify for participation. This minimum ensures that only committed stakeholders participate, helping maintain the network’s reliability.
When Can I Unstake My Dymension Tokens?
You have the option to unstake your Dymension tokens at any time, choosing the amount you want to withdraw. However, there’s a mandatory 21-day unstaking period before your tokens become available for use. This timeframe is common across many staking networks and serves to prevent immediate withdrawals during network disruptions.
What Are The Slashing Risks When Staking Dymension?
There are slashing risks tied to validator performance on Dymension. If a validator signs less than 80% of blocks within a 10,000-block window, they are jailed temporarily and can’t earn rewards, though no tokens are lost. For more severe breaches like double-signing, a 5% slashing penalty is applied to delegators, and the validator is permanently barred from earning rewards, requiring delegators to switch validators.
