How to Stake Tezos
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Tezos staking lets XTZ holders temporarily lock their tokens to contribute to the network’s proof-of-stake security and receive protocol participation rewards. Unlike simply holding XTZ, staking makes the tokens part of a baker’s security deposit. Delegation is different: delegated XTZ remains liquid and does not carry the same slashing exposure. Tezos’ current staking system allows users to stake with a baker without operating a node themselves.
This article is for informational purposes and is not financial advice. Always Do Your Own Research (DYOR) and verify current protocol rules and wallet instructions before staking.
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What Is Tezos Staking?
Staking is the process of temporarily locking XTZ so that it contributes to a baker’s staking balance. This balance helps determine the baker’s ability to participate in consensus, including producing blocks and attesting to blocks.
Under the current system, staked XTZ contributes fully to a delegate’s baking power, while ordinary delegation contributes a smaller amount to baking power. Staked XTZ also contributes to voting power.
How to Stake Tezos (XTZ)
The general process is:
- Hold XTZ in a compatible Tezos wallet.
- Select a baker that accepts external stakers.
- Delegate the wallet to that baker.
- Choose how much XTZ to stake.
- Review and confirm the staking operation.
- Monitor rewards and baker performance.
- When desired, submit an unstake request and later finalize it after the required waiting period.
Tezos provides an official staking application, while some compatible wallets also provide staking interfaces. The exact screens and terminology can differ between wallets.
What Do You Need Before Staking Tezos?
A beginner generally needs:
- XTZ in a supported Tezos wallet
- A wallet that supports the current staking mechanism
- A baker that accepts external staking
- Enough unstaked XTZ to cover transaction fees
- Control of the wallet’s private keys or signing method
Unlike a baker operating infrastructure, an external staker does not need to run a Tezos node. Current documentation also notes that only user accounts can directly stake; smart contracts cannot stake funds themselves.
What Is the Difference Between Tezos Staking and Delegation?
Delegation assigns an account to a baker while keeping the XTZ liquid and under the owner’s control. Delegated funds can be spent and are not subject to the same slashing exposure.
Staking locks the selected XTZ in the owner’s account. Those tokens contribute to the baker’s security deposit and can be affected by protocol penalties if the baker commits punishable consensus violations. Staking therefore has different security and liquidity characteristics from delegation.
Historically, delegation was the main way ordinary users participated in Tezos rewards. The current protocol instead provides automatic staking rewards to stakers.
How to Choose a Tezos Delegate or Baker
Before selecting a baker, users can research:
- Whether the baker accepts external stakers
- Available staking capacity
- Commission or reward-sharing policies
- Historical participation and missed opportunities
- Previous penalties or slashing events
- Operational information and transparency
These factors can affect the rewards received and the risks associated with staking. They should be researched independently rather than treated as guarantees of future performance.
How to Stake XTZ With a Tezos Wallet
The general wallet process is straightforward:
- Open a compatible wallet and connect it to the staking interface, if necessary.
- Select Stake or the equivalent option.
- Choose a baker that accepts external staking.
- Delegate the account to that baker if it is not already delegated.
- Enter the amount of XTZ to stake.
- Review the amount, baker, and applicable transaction fee.
- Confirm the operation in the wallet.
Keep some XTZ unstaked for future transaction fees. Wallet interfaces can change, so users should follow the current instructions provided by their wallet and Tezos documentation.
How Do Tezos Staking Rewards Work?
Tezos protocol issuance includes participation rewards for consensus activities. Under Adaptive Issuance, the amount allocated to participation rewards changes according to the network’s staked ratio. Rewards are associated with activities such as baking and attestation.
For external stakers, rewards are automatically credited according to the protocol, while a baker’s policies determine how rewards associated with its operations and staking relationships are handled. Reward amounts can vary with staking participation, protocol parameters, and baker performance. They are not guaranteed income or a fixed return.
How Long Is Tezos Staking Locked?
Staked XTZ cannot be spent while it is staked. To release it, the user first submits an unstake request. The tokens then remain frozen during the unstaking period.
Under the current protocol documentation, unstaking requires three full blockchain cycles after the cycle containing the request has ended, meaning the process can take up to about four days, including the time remaining in the current cycle. The funds then become finalizable, after which a finalization operation makes them spendable again.
What Are the Risks and Fees of Staking Tezos?
Staking involves several considerations. Staked XTZ can be subject to slashing if the selected baker engages in punishable behavior. Baker performance can also affect rewards. Because staked tokens are temporarily frozen, they cannot be used for other transactions during that period.
Users should also consider wallet security, private-key protection, transaction fees, baker policies, and potential changes to Tezos protocol rules. A compromised wallet can create risks independent of the blockchain’s staking mechanism.
Current Tezos staking involves selecting a participating baker, delegating the account, locking a chosen amount of XTZ, and allowing that stake to contribute to consensus security. Rewards are generated through protocol participation mechanisms and can vary rather than representing guaranteed income.
Before staking, users should understand the distinction between delegation and staking, the amount being locked, the baker’s policies, potential slashing exposure, transaction fees, and the current unstaking timeline. Because Tezos can change its protocol through upgrades, current official documentation should be checked whenever staking rules or parameters change.