Atom

Stake ATOM with Kiln, enterprise-grade staking

Ernest Oppetit, Chief Product Officer
September 27, 2022

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?

In a Proof-of-Stake blockchain, staking consists of locking native tokens to earn the right to secure a chain and earn a yield. It has overtaken mining as the primary way to secure blockchains. 

Staking consists in locking native tokens (ie ATOM) into “Validators” to give them the right to secure a chain. Validators achieve this by proposing new blocks or attesting other validators blocks, earning a yield while doing so.

Why should you stake your assets?

Staking generates the safest and most predictable yields in the crypto space. It is the most natural yield feature in crypto as the value originates from the blockchain’s native currency inflation, making it forecastable. By staking your ATOM tokens, you help secure the network and earn rewards at the same time.

In other words, not staking holds back the network’s inflation as your token share is diluted among other people who are staking and accumulating new tokens.

You can stake your ATOM as well as other PoS cryptocurrencies to:
  • Put your treasury to work
  • Diversify and earn
  • Bring new opportunities to generate safe yields to your users
You stake
$100M
You get
$1.7M
/
every month

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:

  1. Login to the Kiln dashboard
  2. Initial Stake by selecting your Account and the amount of ATOM
  3. Connect your wallet: Lunie, Nano Ledger X, Kepir, …Kiln supports multiple wallets as well as WalletConnect
  4. Delegate Stake
  5. 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 17.85% APR from each validator you stake on Kiln

Protocol Card
Expected yield
17.81%
Token
ATOM
APY
17.81%
Number of live validators
410
Consensus
PoS + BFT + dPoS
Node type
Full/ Dedicated + RPC + Multi-Node (Validator Package)
Hosting
Bare Metal + Cloud

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 so that everyone can securely and seamlessly stake their coins from our dashboard, a hardware wallet, a browser wallet, a B2B custodian, a crypto exchange or just their favorite investment app. Kiln makes staking Solana 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?

Get in touch with our team to discuss Prime customers advantages and unlock the full Kiln experience.

Stake ATOM FAQ

What does Proof-of Stake mean?

Proof-of-Stake (PoS) is a type of consensus mechanism used to validate cryptocurrency transactions. Both Bitcoin and Ethereum, the two largest blockchains, use another type of consensus named Proof-of-Work, that requires a certain amount of computing power in order to deter frivolous or malicious uses of computing power. However, Ethereum plans to transition to the Proof of Stake (PoS) algorithm as part of their development roadmap. Main reasons are because it is more secure and less energy-intensive.

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% APY. 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.

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.