Leo Treasure
Staking Tezos now yields triple the rewards compared to delegation.
You may ask the question: "Wouldn't that triple inflation?"
No, because delegators rewards have dropped by triple with no additional tez being created.
If you hold Tezos (XTZ) on an exchange you don't receive any rewards, meaning your capital is diluted by the delegators and stakers who receive rewards.
Surprisingly nearly 36% of Tezos holders hold on an exchange. This is extremely dangerous as a long term strategy given the litany of exchange failures:
Mt. Gox 2014 Once handling over 70% of all Bitcoin transactions worldwide, Mt. Gox filed for bankruptcy after losing approximately 850,000 BTC in a massive security breach.
QuadrigaCX 2019 Following the unexpected death of its founder, Gerald Cotten, the Canadian exchange lost access to wallets containing about $190 million in user funds, leading to its collapse.
Cryptopia 2019 The New Zealand-based exchange suffered a significant hack resulting in the loss of around $24 million in cryptocurrencies, eventually leading to its liquidation.
Bitgrail 2018 The Italian exchange reported the loss of 17 million Nano tokens (worth approximately $170 million at the time) due to unauthorised transactions, leading to its bankruptcy.
FTX 2022 Once a prominent global exchange, FTX filed for bankruptcy amid allegations of mismanagement and misuse of customer funds, resulting in significant financial losses for investors.
WazirX 2024 The India-based exchange was hacked, leading to the loss of approximately $234.9 million in investor funds and the cessation of its operations.
Staking is easy
Staking is easy once you have a Tezos wallet like kukai.app
- Withdraw your XTZ from the exchange to your Kukai wallet.
- Open a new tab and goto stake.tezos.com
- Delegate to Money Every 3 Days
- Confirm the operation in the Kukai tab
- Switch back to the stake.tezos.com tab and stake most of your balance (leaving 1 tez for gas)
- Confirm the operation in the Kukai tab
