Cardano’s Development Team Highlights 3 Steps to Stake ADA 

IOG educates the Cardano community on how to earn passive income through staking.

Following the massive decline in the value of crypto this year, many cryptocurrency investors have opted to hold their digital currencies in their wallets as they remain hopeful that prices will skyrocket again. 

For instance, Cardano’s native cryptocurrency, ADA, has plunged 89% since hitting an all-time high of $3.09. At the time of writing, the asset class is changing hands at $0.51, according to data on Coingecko. 

Many investors who bought ADA at its peak have no choice but to hold the cryptocurrency in their wallets, hoping that price will rally again. 

Interestingly, instead of holding ADA and waiting for the coin’s price to soar again, investors can deploy their assets to various staking pools to earn rewards. 

Cardano’s Staking

In a Twitter thread today, Input Output Global (IOG), the team behind Cardano’s development, shared insights about how Cardano’s staking works and how investors can benefit from the initiative. 

On #Cardano, stake pool operators earn rewards for running the nodes that support the network and produce blocks. At the same time, $ada delegators get rewarded for staking.

Here’s how it works in 5 simple steps👇 pic.twitter.com/e3PGMg1MTy

— Input Output (@InputOutputHK) August 3, 2022

IOG noted that Cardano enables stake pool operators and ADA delegators to earn rewards via staking. The stake pool operators are responsible for running nodes that support the network.  

Staking on Cardano is a way investors contribute to the network by validating transactions on the blockchain using a non-custodial mechanism. 

The initiative adds security to Cardano, enabling the network to achieve complete decentralization. 

In three steps, the IOG highlights how Cardano investors can stake their ADA coins in anticipation of an imminent rally that will likely occur anytime soon. 

Delegating ADA to a Stake Pool 

Investors interested in staking their ADA are required to hold the asset class in a Cardano-compatible wallet. Some Cardano wallets supporting staking include Yoroi, Flint, Adalite, Eternl, etc. The user can find a dedicated pool to stake their assets to from the wallet’s platform using the “Staking” tab. 

Additionally, ADA investors can check various community websites, including cardanoscan.io, adatools.io, pooltool.io, and pool.pm.  

Stake Confirmation and Activation

Once you have selected a pool, you will need to delegate your ADA to be registered for staking five days (epoch) before the start of a block-producing epoch to earn rewards. 

It is noteworthy that staking rewards are distributed within 20 to 25 days if the pool you delegate your ADA to produces blocks. 

Earning Rewards for Contributing to the Cardano Network 

Cardano’s Proof-of-Stake consensus algorithm, Ouroboros, will calculate your contributions to the staking pool at every epoch. 

The calculation will focus on the amount of ADA staked and the Pool’s return on stake. As long as the pool you delegate your ADA to produces blocks; you will be rewarded automatically every five days. You can choose to withdraw the rewards at any time or do so at your convenience. 

IOG further guides users to keep on checking pools are generating blocks regularly; if not, the pool might be saturated and users might delegate to another pool.

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