The Dock utility token (DOCK) plays a key role in aligning incentives across all of the Dock network’s participants including issuers, validators, token holders, and the Dock Association, and ensures collaboration and growth. If you would like to learn how to turn your DOCK into more DOCK, read on for our Step by Step guide on the staking process.
With a current reward rate of just above 30% per year, you’ll soon be swimming in DOCK. Check out our Dock Reward Calculator if you’d like to simulate your reward over time.
Prerequisites
Before you can begin staking, you will need to:
- Own some DOCK. You can buy DOCK on Centralized exchanges such as Binance, Huobi and WazirX.
- Create 2 accounts on the DOCK network.
- Stash Account: holds the tokens that are staked, similar to a savings account. Its private key should be as secure as possible in a cold wallet.
- Controller Account: signal choices on behalf of the Stash account, like payout preferences and staking tokens to a validator. It should only hold a minimal amount of funds to pay transaction fees.
You can read more here, on how to create accounts.
How to Stake DOCK
Step 1
Start by going to the DockJS App and navigating to Staking Tab -> Account Actions.
Proceed by clicking the +Nominator Button on the screen.
Step 2
You will now see the window below. Here you can decide which of your 2 newly created DOCK accounts will become the Stash Account, and which will be the Controller account. You also get to choose how many DOCK tokens you would like to stake.
Please keep some DOCK on your Controller account to pay for future transactions.
There is also a minimum of 1 DOCK required for your DOCK account to remain active. DOCK recommends keeping a minimum of 1.5 DOCK tokens on your account at all times to be safe.
Step 3
In the same window, you will have the below drop-down. Here you can decide where your rewards are sent to. If you pick Stash account (increase the amount at stake) you will automatically compound your returns. It is however possible to get the rewards paid out to a different account, from which you can sell the tokens and use them for your day-to-day expenses.
Step 4
Upon clicking next, you will be asked to select Validators you would like to delegate your tokens to. Be mindful of the fact, that as your tokens are now bonded, you run the risk of getting slashed, if the validator you pick misbehaves. Check out our StakingRewards page for Dock here to see the performance of the validators and the current reward rate for them. This way you can make a more informed decision on which validators might be trustworthy.
Step 5
Congratulations. Once you pick up to 16 validators and confirm the transaction you will be successfully staking DOCK. It takes 2 epochs for your staking to become active and for you to reap rewards. Check out the current epoch length on the DockJS App Staking Dashboard.
Conclusion
Staking DOCK is not difficult as you can see. The only extra steps involved are the creation of 2 accounts rather than 1 account as is normally seen with other projects.
To unstake, you should follow a similar procedure to staking, and your current unbonding period can be seen on the DockJS App.
Lastly, previously I mentioned that your rewards will get compounded automatically; however, this is only partly true. DOCK rewards have to be claimed once per epoch per validator. Any delegator or the owner of the validator can claim the rewards. If one user claims the rewards, they will be paid out to all delegators to this validator. Please bear in mind that rewards can only be claimed for the alst 84 epochs. Any unclaimed rewards older than that, will be forfeited.