What is Internet Computer?
Internet Computer (ICP) is a blockchain-based platform that allows developers to build and deploy decentralized applications and services at scale. ICP’s vision is to provide an open and secure platform for developers to build and deploy applications and services that are free from the control of any single entity. To achieve this, ICP uses a decentralized system of nodes to verify identity and authenticity, which makes ICP more secure and resilient than traditional protocols. The token that powers the Internet Computer network is ICP and it is exclusively used for staking, delegating, paying transaction fees, and governance votes on the network. This tutorial will show you how to stake your ICP tokens on the Internet Computer network.
TL;DR
- View the current ICP staking APR here
- Use the ICP Staking Calculator to estimate your rewards
- Lockup: 6 months to 8 years
- Minimum amount required for staking: 1 ICP
- Estimated time needed to stake your ICP in your wallet: 3 minutes
- Recommended ICP staking wallets: Ledger, NNS dApp
- Steps to stake:
- Go to ICP Staking Portal and connect/enter your wallet
- Enter the amount of stake and set up the dissolve delay
- Follow neurons (optional)
- Confirm and happy staking 🤘
Prerequisites
Where to buy ICP
You can get ICP tokens at a cryptocurrency exchange or a DEX. You should always do your own research when selecting a reputable cryptocurrency exchange. For best security, it is not recommended to leave your tokens on an exchange, but transfer them to your non-custodial or cold/hardware wallet after procuring them.
ICP wallets
ICP has a variety of non-custodial wallets for you to choose from. We recommend that you use a hardware wallet such as Ledger otherwise we suggest using NNS dApp. Compatible wallets include:
How to connect Internet Computer (ICP) to NNS dApp
When setting up your wallet in NNS dApp, it will automatically create an ICP account for you.
- Click on ‘Sign in with Internet Identity’
- Click on ‘Create an Anchor’
- Input a device name, press ‘Next’ and then ‘Continue’
- Type the characters you see and click ‘Next’
- Copy the anchor number and save it privately, click on ‘Continue’
- Choose ‘Recovery Phrase’, copy the words and save them at a secure location in private, tick the box, and then click on ‘Continue’
- Now you’ve created a built-in wallet in NNS dApp that is connected to ICP network
Selecting ICP validators (i.e. neurons)
Please refer to the FAQ section titled ‘How do I choose ICP validators (Neurons)’ on this page when selecting ICP validators. Also, you may want to utilize our criteria for verifying providers through the Staking Rewards Verified Staking Provider (VSP)Program.
How Staking Rewards for Internet Computer (ICP) are Generated
Learn how rewards are generated in the FAQ section titled ‘How are the rewards generated’’ here.
How to stake Internet Computer (ICP)
Step 1: Make sure you have an NNS dApp wallet
Stake your ICP tokens using Ledger, NNS dApp, or Plug Wallet. We will use the NNS dApp in this staking tutorial.
As a popular wallet in the Internet Computer network, NNS dApp offers users the ability to stake tokens and access blockchain apps in one wallet. Simply connect your Ledger to NNS dApp or use NNS dApp directly to stake ICP. Access the NNS dApp directly here. Deposit your tokens into this wallet before continuing onto step 2.
Step 2: Go to the ICP staking portal and start staking
After entering your wallet, you can enter the amount of tokens you would like to stake to and the dissolve delay, and start staking.
- On your staking dashboard, click on ‘My Neuron Staking’ on the left-hand side
- Click on ‘Stake Neurons’ at the bottom of the page
- Select the source account from which you want to stake your tokens
- Enter the amount of tokens you would like to stake
- Click on ‘Create’ to create a stake account
- Set up your Dissolve Delay (i.e. stake period) with the minimum of 6 months
- Click on ‘Confirm and Set Delay’
Make sure you do NOT stake your full available balance. You MUST leave at least 0.0001 ICP for gas fees. This cost will vary depending on the network activity on the Internet Computer network.
Congratulations! You have now staked your ICP tokens. Please note that to earn rewards, your “dissolve delay” must be 6 months or longer and you must vote on NNS proposals.
Step 3: Choose the neurons to follow to (option)
- Now you will see a page with neurons that you choose to follow. Click on the drop-down menu button to view the neurons information under each category
- Click on ‘Follow’ on the neuron
- If you want to follow more neurons, click on ‘Add new followee’
If you are unsure of how to choose a neuron, please see the FAQ section named ‘Selecting ICP validators (i.e. neurons)’ above to help you decide.
Step 4: Track staking portfolio
- Track your ICP staking rewards on the staking dashboard by clicking on ‘My Neuron Staking’
- Now you can see your current voting power, age (stake period that has passed), and dissolve delay
- Monitor and participate in governance proposals on ICP network as that will impact your staking rewards directly and may also impact the staking mechanism
- Track the current and historical reward rates, number of unique ICP staking wallets, and staking ratio of the Internet Computer network by visiting the ICP asset page. To make better staking decisions, it’s essential to understand these relevant data points. To learn how these data points could impact your staking rewards, please read more in the FAQ section named “How are the rewards generated” on the ICP asset page.
Step 5: How to Unstake ICP
To unstake your ICP tokens, follow the steps below:
- On the staking dashboard, click on ‘Start Dissolving’ and then ‘Yes, I’m sure’ (Note that this may harm your age bonus, and you need a minimum of 6 months for Dissolve Delay to earn rewards)
Maximizing Staked ICP
Now that you have staked your ICP, you have 4 options which can be used to change your position. These options appear on the ICP Staking Portal. The options are:
- Stake more
- Update your Dissolve Delay (i.e. stake period)
- Follow and unfollow other neurons
- Claim reward and dissolve (i.e. bond)
Stake more
By clicking on ‘Increase Stake’ on the staking dashboard, you can stake more ICP tokens.
Update your Dissolve Delay (i.e. stake period)
By clicking on ‘Increase Delay’, you can lengthen your stake period to boost your voting power to earn more rewards.
Follow and unfollow other neurons
Note that you must vote on proposals to earn rewards. But if you don’t want to vote by yourself, you can also follow or unfollow other neurons by following instructions in Step 3 above.
Claim reward and dissolve (i.e. bond)
To receive rewards you must unstake your stake by clicking on ‘Start Dissolving’ on the staking dashboard.
Conclusion
Staking is essential to Proof-of-Stake blockchains and comes with many benefits for investors and the network:
- 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 amount of tokens staked.
Congratulations! You are now not only getting the most out of your investment with compounded returns. YOU are also (in-)directly contributing to the decentralization, and the network security of Internet Computer and thus contributing to the long-term success of your investment! Internet Computer needs active stakers like you to become successful long-term.
Now share the tutorial with your friends so they can get to start staking as well!
Lastly, don’t forget to check out the Internet Computer (ICP) asset page for more insights into staking ICP, and drop us a message if you found this tutorial useful. Happy staking!