Staking in the ICON Network is a powerful process by which every actor involved gives an input on the project’s future direction. Stakers have the ability to delegate their voting power among 22 P-Reps, which will secure the network and validate transactions. The voting process is a very powerful one as it has the ability to orientate the project towards success or failure. If you vote against the project’s interests, you will feel the negative market effects over time. Therefore, it is recommended to do your own research about the P-Reps you decide to vote and check if they have shown skin in the game and really put facts behind their words. Also, it is recommended to vote among multiple P-Reps, based on their contribution, and not necessarily to focus on only a few. By dispersing your votes to multiple P-Reps, centralization of power will be avoided and the risk of losing a bigger part of the stake in case of P-Rep penalties can be also significantly reduced.
How to vote for P-Reps and receive rewards?
- Buying ICX on exchanges like Binance, OKEX or Velic. Other exchanges offering ICX pairings can be found here;
- Install the ICONex wallet;
- Transfer the ICX from the exchange in your own ICONex wallet. It is also strongly recommended to use Ledger Nano S, depending on the volume of ICX you will keep in the address.
Voting process with ICONex and Ledger Nano S
- Log in to ICONex and first click “Voting”, then press “Connect to Ledger”. Make sure you have the Ledger hardware wallet connected to your PC/notebook and have the ICON app installed on it;
- Choose your address on your Ledger and press “Select”;
- Press “Adjust” in order to adjust the amount you want to stake;
- Select the amount you want to stake and press “Complete”;
- Confirm the transaction with your Ledger;
- Once the transaction was approved with Ledger, press “Complete”;
- Press “Vote” in order to start the vote;
- Select your favorite P-Reps by pressing “+”. It is recommended to select multiple P-Reps to reduce the risk of power centralization and the one of having a 6% burn penalty;
- Once you distributed your voting power among certain P-Reps, press “Vote”;
- Confirm again the transaction with your Ledger;
- Once confirmed press “Complete” and you are done!
Voting process with ICONex
- Log in to ICONex by using your wallet password or with Ledger Nano S. If needed, please check the guide on how to use the ICONex with your Ledger device;
- Click the “Stake” button at the bottom left of the voting menu;
- Apply the amount of ICX you would like to stake via the slider and then press “Submit”;
- Staked ICX can be used to vote for P-Reps;
- Select your favorite P-Rep candidate on the list and click the “+” button;
- Adjust the voting power for the selected P-Rep using the slider then press “Vote”.
ICX Staking FAQ
When can I start to stake?
On 26th August 2019 the pre-voting period will start and ICONists will be able to stake through the ICONex wallet and vote for their preferred P-Rep candidates. ICON Foundation will use a pool of approximately 3 million ICX as pre-voting rewards. During this phase a more clearer image will be built up on who will occupy the 22 P-Rep positions at the start of the voting period on the 26th of September 2019. At this date the top 22 P-Reps will mark a new big milestone in the history of the ICON blockchain as the decentralization will start and P-Reps will start producing blocks. In order for a P-Rep to get into the top 22, it is needed to have a minimum of 0.2% of the total supply of ICX delegated. If there are not 22 P-Reps that meet this criteria, then the decentralization of the network will wait until this criteria is met.
How can I stake?
You can stake through the ICONex wallet and is recommended to use it in combination with Ledger Nano S.
Is there a minimum amount of ICX required for staking?
No, there is no minimum amount required for staking and you can stake with the very first ICX.
How high is the reward?
Voters can stake ICX in three categories (P-Rep, DApp, EEP) and the ICON Network will reward them with I-Score, which is convertible into ICX at a rate of 1,000 I-Score = 1 ICX. The annual rewards vary from 6% to 36%, depending on the total amount of ICX that is staked in the network. Based on a 30% delegation rate assumption in a category, the average ICONist can expect 5.27% annual yield in this one, summing up a 15.81% total annual yield (5.27% x 3).
Will my ICX be locked during staking time?
The ICX of a voter will be locked for a period of 5 to 20 days, depending on how much ICX is staked on the network. With an increased percentage of staking within he network, the numbers of the days you need to wait to un-stake will decrease.
Can I change my vote during locking period?
Yes, you can change your vote at anytime, even during the locking period.
Do I lose control of my ICX tokens if I stake?
No, as long as you are the owner of the private key to unlock the wallet, your ICX tokens will always belong to you. There is only a small chance that your ICX staked with a P-Rep will be lost, which is when and if that P-Rep gets a penalty (in case you vote for one single P-Rep 6% will be burned as penalty. The risk percentage decreased if your vote is distributed to multiple P-Reps at a time).
Are there any risks if I stake?
There are only 2 main risks, and both can be reduced through one single solution.
1. Centralization of power by having an unbalance between super large P-REPs and small players
2. Getting 6% of the stake you delegate towards a P-Rep burned, in case that P-Rep gets a penalty.
On the other side there are more risks if you don’t stake, as staking helps securing a decentralized network.
How can I reduce those risks?
It is strongly recommended to distribute your vote to multiple valuable P-Reps, in order to diversify the risk of having your tokens burned and at the same time to reduce the centralization of power within the ICON Network. An updated ICON Tracker will also be released for users to check information like staked ICX, voted ICX, governance variables, P-Rep rankings and productivity.
What should I do if the node of a P-Rep goes down?
A P-Rep gets a penalty if the validator has less than 85% uptime or behaves malicious. Therefore it is important to select professional and dedicated P-Reps, preferably who also participated in the Testnet phase as this would have helped them to get more familiar with the network.
Should I stake with one or multiple P-Reps?
As previously stated, it is strongly recommended to delegate your stake across multiple valuable P-Reps in order to diversify the risk of having your tokens burned and at the same time to reduce the centralization of power within the ICON Network.
Where can I find a list with the P-Reps?
You can find a list of the P-Reps here.
How can I decide which P-Reps are good for me and for the future of the ICON Network?
There are multiple reasons to choose a P-Rep. First it would be important to read their proposal and find out if it really brings a value to the ICON ecosystem. Then it would be important to see if they already have shown devotement and skin in the game. This could be by already accomplishing a part of their proposal, creating extra value – more act than talk, participating in Testnet 1 and Testnet 2, being active in the community by discussing certain topics and answering questions. It is also recommended to check the video panels as they offer a lot of information about the P-Rep candidates: https://medium.com/helloiconworld/iconsensus-update-p-rep-panel-discussion-478f246c25b2
Chainode Capital P-Rep Candidate
Chainode Capital is one of the P-Rep Candidates which were dedicated from the very beginning and invested their own resources in order to grow the ICON Ecosystem. In order to put facts behind those words, you can check below what we did in terms of Creation and Word Spreading/ Education for ICON Network and the ICON community.
Our application as P-Rep Candidate can be found here:
Our strategy: We create. We spread. You stake.
Word spreading & education
ICON Forum: https://forum.icon.community/u/ChainodeCapital/summary
P-Rep panel: https://youtu.be/R70xQjOpsxk
You can reach us on the following social media channels:
Please join our Telegram channel mentioned above if you have questions regarding staking and our team. We will be happy to guide you through the staking process and discuss with you why staking and voting is so important for a decentralized network and implicitly for its participants and also how this will be reflected in the future economics of the network, including the value of the ICX token.