TAO Staking on Bittensor: A Quick and Easy Tutorial

What is TAO Staking?

Bittensor staking means delegating TAO tokens to the Bittensor network subnet validators. The delegator (or nominator) supports the validator by increasing the validator's effective stake, enhancing their impact on the network. The validator pools the delegated stake with their own to perform validation tasks in subnets, earning daily staking rewards, which then accrue to the nominators after deducting the validator's commission.

This article will serve as your staking guide, helping you familiarize yourself with the TAO staking process, providing a step-by-step tutorial, tips to choose a reliable TAO validator, and offering network-specific details such as fees and lockup periods.

Important: If you stake TAO on root — that is, "staking TAO normally as TAO" — your yield does not compound automatically. You must claim it manually, regardless of which validator you delegate to. See [How to Claim Your TAO Staking Rewards](#how-to-claim-your-tao-staking-rewards) below.

How to Stake TAO?

Follow these steps to stake TAO via a crypto wallet.

Step 1: Prepare a supported Bittensor wallet

Stake your TAO tokens using the Polkadot.js wallet. Polkadot.js is an account management tool, and a TAO wallet, allowing users to interact with applications and platforms created on parachains within the Polkadot ecosystem. Install the Polkadot.js browser extension as a Bittensor wallet and deposit your tokens into this wallet before continuing to the second step.

Step 2: Start staking TAO

Navigate to the [WildSage Staking Dashboard](https://staking.wildsage.io).

Enjoy the video tutorial or follow the step-by-step guide below.

Step 3: Connect your Bittensor wallet

Connect your wallet. Allow the application access if you're visiting the website for the first time.

Step 4: Choose an account

Verify your designated wallet in the "Account" field.

Step 5: Choose the Bittensor validator

Select the TAO validator from the list. We recommend choosing validators from our Staking Rewards VSP Program.

Step 6: Stake TAO

Enter the amount of TAO you want to stake, making sure to leave a small amount of tokens for future transactions.

Step 7: Delegate TAO

Finalize the staking process by clicking "Delegate" and confirm the transaction in your wallet.

How to Choose Bittensor TAO Validators?

Delegated staking offers numerous TAO validators, and selecting the right one can be a bit of a puzzle. To navigate this, you might find our criteria for verifying providers through the Staking Rewards Verified Staking Provider (VSP) Program quite useful. For more information about validators, head over to the overview of potential validators by Bittensor to find one that matches your goals and values.

A note on dashboards: some staking front ends pre-select their own validator by default and make it awkward to switch. Before you confirm a transaction, always check which validator is actually selected in the "Validator" field — and prefer a dashboard that lets you change it freely.

In addition, you can consider other metrics when selecting a validator to delegate to:

Commission: The commission rate the validator charges is the percentage of your reward that the validator keeps for themselves. A high commission rate means your rewards will be lower, while a low commission rate could indicate that the validator is not profitable, potentially leading to future issues. Keep in mind that validators can adjust their commission rates up or down over time.

Number of Users: A high number of delegators could indicate positive sentiment towards a validator.

Validators Self-Staked Balance: A provider with a high amount of staked tokens likely has more incentive to continue operating their services as they have more at stake than those with low self-staked balances. This metric has some limitations since validators can choose to delegate to their own validator from another wallet, a strategy often employed to enhance the security of their funds.

Whether the validator actually runs the infrastructure: Not every entity holding large amounts of delegated stake operates its own validator infrastructure. Concentrated weight sitting with parties that don't run the infra can create problems for the network, so it's worth checking that the validator you pick is an active operator.

Network Share: Delegating to the most popular validators increases centralization risks within the network, while a validator with a low network share might not be profitable, increasing the risk of discontinuing their services. If a validator drops out of the eligible set, they also stop earning rewards. However, if you're willing to invest more time, delegating to a smaller validator helps support the network's decentralization through subnet delegation. Just ensure to regularly check if the provider is still active and operating.

How are TAO Staking Rewards Generated?

A new TAO is minted every 12 seconds. This single TAO is then distributed among the 32 subnets. Therefore, every 12 seconds, each subnet receives a portion of the newly created TAO based on its performance. This fractional TAO reward, known as emission, is then distributed within the subnet, highlighting the importance of subnet rewards and tokenomics:

- 18% of it goes to the subnet owner.

- 41% goes to subnet validators (this is called dividend).

- 41% goes to the subnet miners (this is called incentive).

Validators determine the allocation for each subnet by assigning weights to them, a process conducted in the Root Subnet. The Yuma Consensus mechanism calculates the percentage allocation for each subnet across all validators, with prioritization based on the total stake held by each validator.

Consequently, validators with larger delegated stakes wield more influence over the value assigned to subnets and network participants. Although there is an ongoing discussion and proposal to transition this mechanism towards a more dynamic market-led solution known as Dynamic TAO, it is currently in the testing phase and hasn't been implemented yet.

You are welcome to experiment with our TAO Staking Calculator to get a better understanding of how these metrics can influence your rewards. The APY staking calculator and TAO rewards over time are great tools for this purpose.

How to Claim Your TAO Staking Rewards

Staking TAO on root does **not** pay out automatically. If you are staking $TAO on root — in other words, "staking TAO normally as TAO" — you must **manually claim your root yield**, and this applies **regardless of which validator you have chosen**. Rewards that go unclaimed simply sit there; they do not compound on your behalf.

You can claim in one of two ways:

1. Via a staking front end. Some dashboards expose a dedicated claim action — for example, the "Claim" button on the [WildSage Staking Dashboard](https://staking.wildsage.io).

2. Via the Bittensor CLI. If you prefer to manage your stake from the command line, you can claim your root yield through the official Bittensor CLI.

It's worth setting yourself a recurring reminder to check and claim, so your yield doesn't sit idle. If you intend to compound, remember that claiming is only the first half — you then need to re-stake the claimed TAO (see [Stake More](#stake-more) below).

TAO Staking Details

- View the current Bittensor staking APR

- Use the Bittensor Staking Calculator to estimate your rewards

- Lockup: no lockup

- Commission rate: 9–18%

- Minimum amount required for staking: no minimum

- Reward claiming: manual for root staking (see [How to Claim Your TAO Staking Rewards](#how-to-claim-your-tao-staking-rewards))

Where to Buy TAO?

You can acquire TAO tokens on centralized and decentralized cryptocurrency exchanges. Always do your own research when selecting a reputable cryptocurrency exchange. For optimal security, it's advisable not to leave your tokens on an exchange, but to transfer them to your non-custodial or cold/hardware wallet after purchasing. You can buy TAO here:

- Binance

Track Your Staking Portfolio

Track the current and historical reward rates, validator count, number of unique Bittensor staking wallets, and the staking ratio of the Bittensor network by visiting the Bittensor (TAO) asset page. Track TAO staking APY and delegations. Understanding these relevant data points, including TAO stats and subnet analytics, is essential to make better staking decisions. Predict your future returns with the TAO reward calculator. To learn how these data points could impact your staking rewards, please read more in the FAQ section on the Bittensor (TAO) asset page.

How to Unstake TAO?

To unstake your TAO tokens, follow the video tutorial or the steps below:

Step 1: Go to the TAO staking platform

Navigate to the [WildSage Staking Dashboard](https://staking.wildsage.io).

Step 2: Select an account

Choose the wallet you have staked with, in the "Account" field.

Step 3: Select the Bittensor validator

Select the same validator you have staked with from the list.

Step 4: Claim any outstanding rewards first

If you have unclaimed root yield, claim it before you unstake so nothing is left behind.

Step 5: Unstake TAO

Enter the amount of TAO you want to unstake.

Step 6: Undelegate TAO

Finalize the unstaking process by clicking "Undelegate" and confirm the transaction in your wallet.

Maximizing TAO Staking

Now that you have staked your TAO, you have additional options that can be used to maximize your position. The options are:

Stake More

You can increase your stake by delegating more TAO to validators. You can decide whether to stake with the same Bittensor validator or diversify your delegation across several providers.

Claim and Compound

Because root staking rewards are not paid out automatically, claiming regularly and re-staking the claimed TAO is the simplest way to compound your position. Claim first, then delegate the claimed amount as described in the staking steps above.

TAO Liquid Staking

You can explore liquid staking protocols in the TAO ecosystem for a more flexible staking experience. Users receive receipt tokens for further use in DeFi when depositing wrapped TAO (wTAO). After depositing, tokens are staked with Bittensor TAO validators and earn rewards.

Conclusion

Staking is essential to Proof-of-Stake blockchains and comes with many benefits for investors and the network, including the potential for passive income.

- Investors earn yield from token emissions and/or transaction fees.

- Stakers become eligible for airdrops as many networks prioritize granting these benefits to them.

- Staking helps to secure the network.

- Staking from multiple participants helps decentralize the network.

- Stakers can participate in governance, as many PoS networks allocate governance rights based on the number of tokens staked.

Congratulations! You are now not only getting the most out of your investment with compounded returns — just remember to claim your root rewards, since they won't compound on their own. YOU are also (in-)directly contributing to the decentralization and the network security of Bittensor, and thus contributing to the long-term success of your investment! Bittensor needs active stakers like you to become successful long-term.

Now share the tutorial with your friends so they can get started staking as well!

Lastly, don't forget to check out the Bittensor (TAO) asset page for more insights into staking TAO, and drop us a message if you find this tutorial useful. Happy staking!