What is Cosmos?
Project Cosmos (ATOM) is a project aimed at creating an infrastructure capable of linking several independent blockchains and making them interoperable with each other. The idea is to allow these blockchains, values, and applications on them to communicate with each other, using a standard that guarantees fast execution of these transactions.
What is Cosmos staking?
The Cosmos platform has its own cryptocurrency, a token called ATOM. This token plays a basic role in the existence of an economic ecosystem that regulates the work that underlies the entire network. The Cosmos network depends on the operation of 100 validators, which are responsible for using the Tendermint protocol to carry out the process of generating and validating blocks on the network. This process is initial and can be changed at any time by protocol management.
How does it work?
The work of validators must be rewarded anyway, and as in most blockchains, this reward is given out in their own tokens, in this case, ATOM tokens. But this selection of validators is subject to the rules of any PoS consensus protocol, so in order to be selected, you must have a significant bid to be able to participate. This means that validators must keep and lock balances in ATOM in order to get that participation.
In addition, the ATOM token serves as a mechanism for preventing misuse of the network, i.e., preventing spam, and for accessing network services and as a control system in the network, since ATOM token holders can vote in proportion to their ATOM bid.
On the other hand, the issuance of ATOM tokens is unlimited, and the generation of ATOM tokens by validators is dynamically determined by the network according to the protocol management guidelines. Currently, the fee per block is calculated at 7-20% of the annual yield of the entire ATOM offering. In addition, transaction fees are added, which increase the total amount of remuneration for validators. The network generates blocks in 5-6 seconds, making it one of the fastest blockchain networks in the ecosystem.
What is ATOM staking pool on Guarda?
By entrusting your funds to the Guarda platform you, first of all, provide yourself with a comfortable and safe way to store and invest your funds. Being a non-custodial digital wallet, users can not worry about any interference in their account, as there is no account approval process. Only you have access to your funds. Users can earn passive income by delegating their funds to Guarda Wallet.
The user will be rewarded for delegating their ATOM to a validator. On the Cosmos network, if users delegate their tokens, they cannot use them for transactions, as ATOMs are frozen. This is nothing to worry about because due to the blockchain your tokens remain your property. In addition, you can unlock the tokens at your convenience. That being said, when you revoke the delegation of your tokens, they will be locked for 21 days.
What’s ATOM Staking Interest rate?
The annual return on ATOM placement in Guarda wallet is currently about 9%
How are the rewards distributed?
Guarda Wallet automatically distributes rewards. Rewards are automatically applied at the end of each cycle. Users can receive a reward every 24 hours.
Can I withdraw the staked ATOM?
Users’ funds are frozen for the duration of the delegation, but they can stop this process at any convenient moment. Transactions and further actions can be performed after 21 days.
How can I start staking with Guarda?
- To get started, go to the Guarda website
- Click the button Launch app to begin registering your wallet
- Press the “create a new wallet”
- After this step you will need to come up with your personal password
- Download backup
- Save a backup copy on the computer
- Go to Guarda Cosmos Staking page
- Enter the desired amount
- Press the Stake ATOM button