Avalanche is a blockchain platform for new assets, markets and decentralized applications. The market cap is $2,188,980,221 and the 24h volume is $607,850,415.
Avalanche platform is an ecosystem of blockchains (P-Chain + C-Chain) and a DAG (X-Chain). Investors can leverage their crypto via staking on the P-Chain. Currently there are 2 options to earn passive income and staking rewards with your Avalanche investment as outlined below.
Run a Validator
- How to stake AVAX?
The most feasible option for network participants is by delegating their tokens to a Validator. This is a simple transaction that can be facilitated via the Avalanche Wallet.
When you delegate stake to a validator you specify:
- The ID of the node you’re delegating to
- When you want to start/stop delegating stake (must be while the validator is validating)
- How many AVAX you are staking
- The address to send any rewards to
Read this tutorial how to delegate AVAX using the Avalanche Wallet.
- How much can i make delegating my AVAX?
If the validator that you delegate stake to is sufficiently correct and responsive while you delegate stake to them, you receive a reward when you are done delegating to them. Delegators are rewarded according to the same function as validators. However, the validator that you delegate to keeps a portion of your reward. The percentage of your reward that they keep is specified by the validator’s delegation fee rate, If it’s set to 10%, then they keep 10% of any rewards from stake delegated to them. You can check the rate of each validator in our ranking here.
To calculate your rewards, feel free to use the Avalanche Staking Calculator.
- What are the requirements to delegate AVAX?
- The minimum amount that a delegator must stake is 25 AVAX
- The minimum amount of time one can stake funds for delegation is 2 weeks
- The maximum amount of time one can stake funds for delegation is 1 year
- The minimum delegation fee rate is 2%
- Are the transaction fees additionally paid to validators?
No. Fees are not paid to any specific validator. Instead, they are burned, thus increasing scarcity of the $AVAX.
Data provided by Avascan.