Cosmos is an ecosystem of connected blockchains. The market cap is $1,944,318,984 and the 24h volume is $746,447,491.
Cosmos blockchain consensus is achieved via Tendermint. Investors can leverage their crypto via staking. Currently there are 2 options to earn passive income and staking rewards with your Cosmos investment as outlined below.
Run a Validator Node
- How to stake Cosmos (ATOM)?
For the average user the best way to stake ATOMs is by delegating to one of the Validators of the Network.
You can delegate/bond your ATOM in a single click within Ledger or many other wallets.
If you want to reinvest your rewards, you have to manually claim them and delegate again.
Please consider that withdrawing your funds from staking will take 21 days.
- How much can i earn staking Cosmos (ATOM)?
With the proposed block time of 5s, the initial inflation is 7%. The effective inflation depends on the actual current block time.
The proposed inflation will rise by up to 13% p.a. to 20% until we reached a Total Staked of 66%.
Once the Total Staked is over 66% the inflation will slowly decrease back until 7%.
Effectively the staking yield always depends on the total staked, proposed inflation and block time, which are live tracked on this site
- Is there a risk to stake Cosmos?
Yes even by delegating ATOM, the coins are at risk of slashing.
If the Validator misses blocks or tries to corrupt the network, the delegator holdings might get slashed.
Therefore it is very crucial to choose a professional and trusted Staking Provider.