Tezos

FAQ's

What is Tezos (XTZ)?

Tezos is a self-amending blockchain protocol which supports smart contracts and decentralized applications to be built on top.

Upgrades to the protocol will be made in a structured framework through transparent decision-making from the community/stakeholders.

It is built with a very robust underlying security and automated verification of code.

How was Tezos launched?

The Tezos Foundation sold 80% of all ꜩ tokens for $232 million in July 2017 through an uncapped ICO. 10% were reserved for the Foundation and another 10% for the development team.

After some misalignments with the previous head of the Foundation, the community decided to propose a new management. Now the Foundation is led by fully-committed community members, who finally pushed the launch of the main network to the 01.07.18.

Who is the team behind Tezos?

Tezos is an open source project and allows anyone to contribute.

The Tezos Whitepaper was written in 2014 by Arthur Breitman. Since then the Codebase has been developed by his company Dynamic Ledger Solutions.

Now the Tezos Foundation is assigning funds to many other companies and individuals who help to develop the protocol and the infrastructure around.

How to delegate Tezos (XTZ)?

Delegating Tezos is very easy, secure and can be done within a few minutes directly inside the wallet. For specific instructions this guide is very helpful.

How to bake Tezos independently?

To bake Tezos idependently it is required to have at least 8,000 ꜩ, as the baking rights are assigned in rolls, where 1 roll represents 8,000 ꜩ.

For the process it is required to run a Tezos Node as well as the baker & endorser client, which must be constantly connected to the power and internet.

Security wise it is recommended to maintain the node with regular updates from the dev team and secure the funds in a hardware wallet.

Which network metrics do the rewards depend on?

The individual Tezos rewards depends on the Block Rewards, Endorsement Rewards, Block Time, Daily Network Rewards and Total Staked.

Every block one staker is randomly selected to bake a block and 32 stakers are selected to endorse a block, whereas 1 staked coin counts as one “lottery ticket”. The selected stakers have the right to create or endorse new block and broadcast them network. The Baker then receives the block reward and the fees of all transactions successfully included in this block. The Endorsers receive the endorsement rewards.

In our Staking Calculator you can play with the above mentioned metrics to understand the dynamics and create all kinds of reward scenarios.

Is there a risk to stake Tezos?

Delegating Tezos is very safe. The investor keeps control over his private keys and doesn´t send the coins to anyone. Delegating is just like voting, where the voting power is pegged to the number of coins currently held in the address.

Baking Tezos independently may result in Slashing in case your node misbehaves in form of Double Baking or Double Endorsing.