Decred Staking Overview
Decred (DCR) is a blockchain-based cryptocurrency that was launched in 2016, aiming to offer an open governance platform for the crypto community while enabling sustainable funding policies and community interaction. Decred uses a hybrid consensus mechanism that combines Proof-of-Work with a unique take on Proof-of-Stake. This allows coin holders to shape the future of the network. By staking DCR, users can earn rewards and participate in network governance and security. Staking involves obtaining or buying tickets that allow users to validate blocks and cast votes on proposed changes to the protocol. The current annual yield for staking DCR is around 8%.
For a complete understanding of how to stake Decred (DCR), refer to this step-by-step guide. It provides a comprehensive overview of the staking process and everything you need to know to get started.
How to Stake Decred (DCR)
To stake DCR, users need to follow the given steps:
Step 1 – Get a wallet that supports Decred staking
Step 2 – Deposit or buy some DCR in your wallet
Step 3 – Choose a validator or a stakepool to delegate your tickets
Step 4 – Stake your DCR by buying tickets and sending them to your validator
Step 5 – Claim your rewards after your tickets are voted on or expired
Step 1 - Get a wallet that supports Decred staking
To stake Decred (DCR), the first step is to choose a wallet that can store your coins and support staking. There are multiple options available, such as Atomic Wallet, Decrediton, and Staked. Atomic Wallet is a multi-currency wallet with a built-in exchange, Decrediton is the official Decred wallet with full functionality, and Staked is a non-custodial staking service that runs a stakepool. Choose the wallet that suits your needs and install it on your device.
Step 2 - Deposit or buy some DCR in your wallet
To stake Decred (DCR), you need at least 100 DCR coins, which you can obtain through mining, buying from exchanges such as Binance or CoinW, or swapping other cryptocurrencies using services like Atomic Swap, ShapeShift, or Changelly. The price of a ticket varies, but you can check the current price on the official website of Decred. Once you have some DCR coins, you can start staking.
Step 3 - Choose a validator or a stakepool to delegate your tickets
To stake DCR, you need to choose a validator or stakepool to delegate your tickets to. Validators are nodes that vote on your behalf, while stakepools are groups of validators that offer their services for a fee. You can find a list of validators and stakepools on Decred’s website and compare their fees, uptime, and other statistics. It is recommended to join a smaller stake pool to support network decentralization.
Step 4 - Stake your DCR by buying tickets and sending them to your validator
The next step is to buy tickets and send them to your validator. Tickets are units of staking that allow you to validate blocks and cast votes. You can buy tickets manually or automatically through your wallet by setting up a staking account, choosing a validator or stakepool, specifying the amount of DCR you want to stake, and waiting for confirmation. Once confirmed, your tickets are eligible to be selected to vote on a block, which can take between 1 day to 142 days. During this time, you cannot spend or move your DCR.
Step 5 - Claim your rewards after your tickets are voted on or expired
After your tickets are voted on or expire, you can claim your rewards for staking DCR, which consist of the block reward, ticket price refund, and fees. Rewards are automatically sent to your staking address.
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Best Places to Stake Decred (DCR)
There are multiple options available for staking DCR, each with its own unique benefits and drawbacks. Here are some of the platforms where you can stake your DCR:
Atomic Wallet is a decentralized multi-currency wallet that allows users to store, manage, and exchange their cryptocurrencies securely. With over 5 million users worldwide, Atomic Wallet offers a user-friendly interface and 24/7 live support. It also supports Decred (DCR) staking with an annual yield of 8.16%, and users can choose their own validator or stakepool.
- Atomic Wallet is a multi-currency wallet that supports Decred staking with a simple interface and built-in exchange.
- Staking DCR on Atomic Wallet can earn you an annual yield of 8.16%.
- Atomic Wallet is a non-custodial decentralized wallet that encrypts your private keys and stores them locally on your device.
- You can fully control your funds, and no one can access your sensitive information.
- Atomic Wallet does not require any accounts, verification, or KYC for basic features in the wallet.
- DCR coins need to be locked up for an unpredictable period of time when staked until they are voted or expire.
- There are fees for buying tickets and delegating them to validators or stakepools, which depend on network demand and the commission rate of the validator or stakepool. Atomic Wallet charges a 10% commission fee for staking DCR.
- Staking DCR exposes the staker to price fluctuations, which can result in an increase or decrease in the value of staked DCR.
Binance is a global cryptocurrency exchange and with over 350 supported cryptocurrencies, Binance provides various features and services, including Binance NFT, Binance Pay, and Binance Earn. To start staking DCR on Binance, you need to create or log in to your account, deposit or buy some DCR, and stake your DCR on the Staking page. Binance automatically distributes your rewards to your account after your staking period ends
- Binance offers staking DCR with a 0.38% annual yield, which is comparatively lower than most other platforms.
- You can easily stake DCR on Binance without worrying about security or uptime. Binance will vote on your behalf and distribute rewards automatically every month.
- You can choose from flexible staking periods ranging from 15 to 90 days for DCR on Binance.
- Binance provides 24/7 customer support via chat and offers useful guides and tutorials on using the platform and staking features.
- DCR coins are locked up for a fixed period of time when staked on Binance, making them unavailable for spending or transfer until the staking period ends.
- The value of staked DCR may vary depending on market conditions, exposing stakers to price fluctuations that may lead to a loss of funds. It is recommended to stake only the amount that one can afford to lose.
- Stakers need to trust Binance as a centralized entity with their funds and personal information. Binance has complete access to stakers’ funds and may change the terms and conditions of staking without prior notice.
Option 3: MyCointainer
MyCointainer is a non-custodial staking service that offers a stakepool for Decred and allows you to delegate your tickets to them. To start staking DCR on MyCointainer, you need to create an account, deposit or buy some DCR, and stake your DCR by clicking on the Stake Now button. MyCointainer will lock your funds for staking and pay you rewards automatically every month, minus the commission fee.
- Staking DCR on MyCointainer is easy and hassle-free. The stakepool votes on behalf of the user and automatically sends the rewards every month, after deducting the commission fee.
- MyCointainer provides flexible staking periods, ranging from 30 days to 365 days, allowing users to select a staking period that fits their needs.
- Users can access 24/7 customer service support via chat, with helpful agents available to answer any queries. MyCointainer also offers informative guides and tutorials on how to use the platform and staking features.
- MyCointainer offers a variety of features and services, such as exchange, cashback, airdrops, and more. Users can also earn extra bonuses with each trade or purchase, increasing their income potential.
- DCR coins must be locked up for a set period of time during staking, and cannot be spent or moved until the staking period ends.
- Fees are required for delegating tickets to the stakepool, with a 10% deduction from the block reward that is taken from rewards on a monthly basis.
- Staking DCR on MyCointainer exposes you to the volatility of the cryptocurrency market, and the value of your staked DCR may increase or decrease based on market conditions.
- MyCointainer is a centralized entity, and it is necessary to trust them with your funds and personal information.
Benefits of Staking Decred (DCR)
- Earn rewards for staking DCR, including block rewards, ticket price refunds, and fees.
- Vote on proposed changes to the protocol, participate in off-chain proposals and have a say in the future of Decred.
- Contribute to the security and stability of the network by validating blocks and preventing attacks through Decred’s hybrid PoW/PoS consensus mechanism.
- Support the sustainability and development of Decred by funding its treasury, which is used to pay for contractors and projects that benefit the network. The treasury spending is also decided by stakeholder voting.
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Frequently Asked Questions
What is staking Decred (DCR)?
Staking Decred (DCR) is a way of participating in the governance and security of the Decred network while earning passive income. It involves buying tickets, which are units of staking that give you the right to validate blocks and cast votes. Once you have tickets, you can delegate them to validators or stakepools that vote on your behalf and share the rewards with you. Rewards consist of block rewards, ticket price refunds, and fees.
How much can I earn by staking Decred (DCR)?
The amount you can earn by staking Decred (DCR) depends on various factors such as the price of a ticket, the block reward, the number of tickets per block, and the validator or stakepool commission. According to Staking Rewards, if you stake 100 DCR for one year, you can expect to earn a total reward rate of 7.29%, which is equivalent to 7.29 DCR per year. Your estimated monthly earning would be $5.99 or 0.33206 DCR, and your estimated yearly earning would be $72.92 or 4.04008 DCR.
What are the risks of staking Decred (DCR)?
Staking Decred (DCR) involves risks such as lockup, missed votes, expired tickets, and price fluctuations. When you stake DCR, you need to lock up your coins for an unpredictable period of time, and you cannot spend or move them until your tickets are voted on or expire. If your tickets are selected to vote on a block but fail to do so, you will miss the rewards and lose the ticket price. Expired tickets are also a risk, as they return to you without any rewards if they are not selected to vote on a block within 142 days.
How can I unstake or withdraw my Decred (DCR)?
To unstake or withdraw your Decred (DCR), go to the Tickets tab in your wallet, find the ticket you want to revoke, and click on the Revoke button. This will send a transaction to the network that will return your locked funds to your wallet. Wait for the transaction to be confirmed, which may take up to 20 hours. After the transaction is confirmed, you can withdraw your DCR to another address or exchange it for another currency.