Arculus users may have noticed that with the most recent app update we have introduced native staking for Cardano (ADA), right from your Arculus Wallet. What does that mean for Arculus users?
What is Crypto Staking?
Crypto staking is a method within the blockchain and cryptocurrency ecosystem that allows users to participate in network operations and earn rewards by holding and "staking" their digital assets in a designated wallet or platform. Staking involves pledging a certain amount of cryptocurrency tokens as collateral to support the validation of transactions and the overall security and consensus of a blockchain network. In return for their participation in validation operations, participants receive periodic rewards in the form of additional cryptocurrency.
Staking is an alternative approach to traditional mining, which is utilized by proof-of-work blockchains where miners earn rewards. Staking on proof-of-stake blockchains is known to be more energy-efficient and doesn't require specialized hardware. It not only helps to secure the network, but also incentivizes users to actively participate in the blockchain ecosystem while potentially earning rewards.
Cardano (ADA) is natively a "proof of stake" (PoS) blockchain. With Cardano, you can earn rewards by delegating (or pledging) your ADA to a staking pool. Your delegated ADA can both earn you rewards on the ADA you hold and help in the operation of the Cardano blockchain.
How to Stake Your Cardano with Arculus
When staking ADA, you cannot select an amount to delegate, you instead must stake your entire Cardano wallet balance. Because you delegate your wallet address, not a portion of your ADA, this means you either stake all the ADA in your wallet to a pool, or none. Users are still able to send and receive ADA transactions as normal while your ADA is staked.
There is a 2 ADA deposit required to initiate staking that is held by the chain and returned when you unstake, and you must have a minimum of 4 ADA to stake. Arculus does not charge any fees for staking ADA, however, some pools may charge fees which are shown before you agree to stake your ADA. When you choose to stake your ADA, you can decide between thousands of publicly available Cardano staking pools, found here: https://cexplorer.io/pool.
There is no need to unstake your ADA to use it, but you always have the option to unstake. Before you unstake, though, you will need to claim your rewards by tapping the "Rewards" button. Generally, you do not need to actively claim your rewards as they are automatically included in your staked balance. When reward distribution occurs, your staked balance at that time is used to determine your rewards.
If you want to move to a different staking pool, you can do so at any time. The staking pool may charge a fee.
To redelegate, simply tap the "Redelegate'' button and select the new pool you wish to delegate to. Remember, with Cardano you are delegating your address and your full quantity of ADA, so it's not possible to delegate only part of your holdings in your wallet. It is not necessary to claim your rewards to redelegate. Any rewards are yours and stay with your wallet if you redelegate.
When you stake Cardano with Arculus, you still have full custody of your assets. You continue to hold your private keys and maintain control of your ADA.