Staking ICP is an awesome way to generate passive income while being able to participate in the governance of an infinitely scalable blockchain.

      Important Links for staking ICP

      See up to date staking data on Internet Computer Asset Page

      Use our ICP Advanced Staking Calculator

      Everything you need to know about staking ICP

      The Internet Computer is the fastest and only infinitely scalable general-purpose blockchain — incubated and launched by the DFINITY Foundation in May 2021 — and aims to become a ‘world computer’ hosting Web3 dapps, DeFi, games, NFTs, social media, and metaverse used by billions of users.

      ICP is the native utility token of the Internet Computer, and is used in the following two functions:

      1. Governance: ICP token holders can stake ICP in the Network Nervous System (NNS) DAO to create “Neurons” to vote on governance proposals and earn voting rewards.
      2. Gas: ICP tokens can be burned and converted into cycles, which are used by developers to pay for computation and storage costs for their decentralized applications running on the network via canister smart contracts.

      In the following article, we will go through the steps to stake your ICP and convert it into Neurons.

      What you need for staking ICP

      • Create an account in the Network Nervous System App
      • Minimum Staked Amount 1 ICP
      • at least 0.0001 ICP to pay transaction fees

      Step 1 – Create an Account in the Network Nervous System App for staking ICP

      The network nervous system is the way the Internet computer is governed. Staking ICP allows you to participate in the community Governance of the Internet computer.

      Staking ICP Website
      Staking ICP Security

      1. First step is to go to https://nns.ic0.app/. This is the official app of the network nervous system and the app that facilitates ICP staking.

      2. To log in to the NNS app, you need to create an Internet Identity.

      3. Write down your Internet Anchor.

      4. Choose a Recovery Mechanism, to recover your Anchor in case your device gets lost.

      5. Write down your Seed Phrase.

      6. Your Wallet is set up. ? 

      Step 2 – Sending ICP to your Wallet

      1. First go to https://nns.ic0.app/#/accounts, here you can find an overview of your Account.

      Sending ICP to your wallet for staking ICP

      2. Under Main find your wallet address, copy it and transfer from your preferred exchange ICP to this.

      Step 3 – Staking ICP aka Neurons

      1. Click on the Neurons tab and click Stake Neuron.

      2. Choose your Account.

      2. Enter the total number of ICP you want to stake, and click create. You have to stake at least 1 ICP.

      3. Set the dissolve delay to your preferred years of stake, and click update delay and confirm it.

      4. Next, select your topics of interest for the proposals you can vote for.

      Staking ICP

      You earn staking rewards on your ICP ? ? ? 

      The Dissolve Delay provides an economic incentive to governance participants. This is because the NNS pays higher reconciliation premiums the longer the dissolve delay is selected. Users can set a maximum delay of up to eight years. This encourages users to participate in the platform for a longer period of time. Each day, the NNS calculates the number of tokens available for rewards.

      The ICP Neuron Calculator can be used to clearly calculate which reward rewards users can expect in individual cases for participating in governance. The calculator takes into account how many tokens were staked, the number of neurons, the staking duration and the dissolve delay.

      Conclusion on staking ICP

      The Internet Computer has brought forth many new features and thus laid the foundation for a real decentralized world computer.

      The staking rewards differ strongly according to the risk preference of the staker. Depending on the selected Dissolve Delay, high yields can be possible. With our Advanced Staking Calculator, the possible staking rewards can be seen.

      Furthermore, the Internet Computer has an interesting governance model. The approach of following certain interest groups with its Neurons and thus making an automated decision is very sophisticated.



      About The Author

      Christoph Matthias

      became a digital asset enthusiast in 2017. He has a master's degree in economics with a special focus on digital innovation. In his master's thesis, he researched the beginning of Decentralized Finance (DeFi) and in particular the impact that stablecoins have on this growing ecosystem. After his graduation, he worked as a securities trader on various German stock exchanges. The focus of his current work is on the upcoming changes that Web 3.0 will have on the areas of traditional finance.