Stake ATOM with Kiln, enterprise-grade staking
What is ATOM?
The Cosmos network is a blockchain layer 1 protocol that focuses on Web3 development and interoperability with other chains. ATOM is the native utility and governance token of Cosmos Hub. ATOM is used in governance and block production in the Cosmos network. Cosmos was the first chain to be built on Tendermint, a PoS and BFT based mechanism for consensus building.
Is COSMOS a Proof-of-Stake blockchain?
As mentioned, Cosmos is built on the Tendermint framework, which works as its main consensus mechanism and is a Proof-of-Stake (PoS) system. Staking ATOM is not particularly difficult, but there are some things you need to know. Things like:
- Long unbonding periods
- Penalties for downtimes
- The inflation rate of the ATOM coin
This should not stop you from staking ATOM yourself and earning rewards from doing so.
What is staking?
Proof-of-Stake (PoS) is a consensus algorithm that aims to improve on some of the problematic aspects of its predecessor Proof-of-Work. It is more popular as it is more environmentally focused and efficient. It works by locking up some of the native tokens with rewards being an incentive for doing so.
By locking a protocol’s native tokens (ie ATOM) to give “validators” the right to secure a chain. Validators propose new blocks or attest other validators’ blocks, gaining rewards for doing so.
Why should you stake your assets?
Staking brings new tokens into the ecosystem in the form of rewards. It is considered the most organic way to make a return on investment in the crypto world as the value comes from the blockchain’s currency inflation. By staking ATOM you are adding to the security of the chain and making a profit from your tokens too.
If you do not stake, your assets will be eroded from protocol inflation.
- Put your treasury to work
- Diversify and earn
- Bring new opportunities to generate safe yields to your users
How to stake ATOM with Kiln?
The minimum amount you will need to start staking is 1 ATOM. To stake ATOM, you’ll only need to access Kiln's dashboard and you can stake your ATOM in a few clicks. Select the Account you want to stake on and the amount of ATOM and connect your wallet:
- Login to the Kiln dashboard
- Initial Stake by selecting your Account and the amount of ATOM
- Connect your wallet: Lunie, Nano Ledger X, …Kiln supports multiple wallets as well as WalletConnect
- Delegate Stake
- Rewards are distributed for staking ATOM come after every block is produced (7.23 seconds)
Unbonding time for your staked ATOM is problematic at 21 days after unstaking. If you feel that you will need your ATOM stake back quickly, this will need to be considered.
What are the rewards associated with staking ATOM?
As an incentive for helping to safeguard the network, you can earn up to 23.44% APR* from each validator you stake on Kiln
Why should you stake your ATOM with Kiln?
Kiln is the leading enterprise-grade staking platform, enabling institutional customers to stake ATOM, and to whitelabel Solana staking functionality into their offering. Our platform is API-first and enables fully automated validators, rewards, data and commission management.
We are serving thousands of businesses worldwide. Our goal is to allow everyone to securely and seamlessly stake their coins from our dashboard. In addition to our dashboard you can also use a hardware wallet, a browser wallet, a B2B custodian, a crypto exchange or just their favorite investment app. Kiln makes staking ATOM easy, secure, and accessible to everyone.
- Stake ATOM in 1 click
- Manage all your ATOM stakes and rewards from a single dashboard
- Non-custodial, work with your existing custodians solutions e.g.Fireblocks
- SOC 2 certified and Industry leading SLAs (0 penalties recorded and 99.95% effective uptime)
Looking to stake ATOM?
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Stake ATOM FAQ
What does Proof-of Stake mean?
Proof-of-Stake (PoS) is a type of consensus mechanism used to validate cryptocurrency transactions. Through PoS, validators can contribute to the block production of a chain while keeping environmental concerns to a minimum, which is becoming an increasingly large issue in Proof-of-Work.
By staking capital rather than energy, validators risk losing a portion of their value and future potential for staking by misbehaving while creating blocks. This incentivizes collaboration and minimizes malicious activity in the consensus process.
When will I receive ATOM rewards?
ATOM rewards are distributed after each block produced, this is roughly every 7.23 seconds. Rewards are calculated based on the proportion of your stake delegated to the pool.
What are the risks associated with staking ATOM?
The risks associated with staking ATOM comes from double signing and downtime. Double spending on the Cosmos protocol comes with a 5% slashing penalty and a 0.01% slashing for downtime. When delegating with Kiln these issues are taken care of from our end so you don’t have to worry.
Is there a minimum and maximum amount to stake for ATOM?
The minimum amount that you will need to stake to contribute to the Cosmos network is at least 1 ATOM.
Do I maintain custody of my ATOM tokens? Is ATOM staking non-custodial?
While you may maintain self-custody of your staked ATOM (ideally using a Ledger hardware wallet), you may also choose a third-party custodian to control the withdrawal of your staked ATOM (ie Fireblocks).
What is the lockup period to stake ATOM? When can I unstake and withdraw my ATOM?
The Cosmos protocol has a longer unbonding period than most, making it in-ideal for those who may need to access their assets promptly. The unbonding period comes in at 21 days for the Cosmos blockchain.
How do rewards and penalties work?
Rewards are distributed every time a block is produced (every 7.23 seconds), rewards account for 17.85% APR. Penalties, on the other hand, are at 5% slashing for double signing, and 0.01% for any downtime.
What is the average block time on ATOM?
The average block time on ATOM is ~7.23 sec.
What are the specificities of ATOM validators?
To stake, or delegate, ATOM coins, you will need a wallet that holds accessible ATOM for staking along with a 1 ATOM fee. To delegate you will need to find an active ATOM validator to delegate your coins to.
What is an Annual Percentage Rate (APR) and how is it different from Annual Percentage Yield (APY)?
APR, or annual percentage rate, is the fixed interest rate earned on an investment over a one-year period. It is the percentage of return investors can expect to receive on their investment. On the other hand, APY or annual percentage yield, takes into account the compounding of interest on a fixed schedule. It includes both the interest earned and the interest on previously earned interest.
When it comes to PoS protocols, compounding does not always apply as additional validators can be needed to stake more. Therefore, APR is used instead of APY. It's worth noting that APY and APR cannot be compared directly, as they measure different things. However, it is possible to convert APR to APY and vice versa.
Where can I learn more about ATOM?
There are many existing resources but we invite you to visit the Qonetum foundation's website and to check our latest articles on our blog.