Vega is a protocol for decentralized trading and execution of financial products. Vega is designed for fully automated, end-to-end margin trading on open public networks, secured with proof of stake.
$VEGA is the native ERC20 token on the Ethereum blockchain. In order to use the Vega token, users need to be associated with a Vega wallet and key. Token holders can nominate a validator node and receive staking rewards. $VEGA token holders can also vote on proposed changes to the network and create proposals.
Sounds interesting? Let's get started on staking $VEGA!
Before we get into the step-by-step guide there's a few things that should be kept in mind:
Still here? Seems like you're ready for the step-by-step guide!
Note: If you haven't set up a VEGA wallet yet, you can check out step by step instructions here. Download Vega wallet here. Vega does a great job of explaining how to get you up and running. Once you're done, come meet me back here and we'll start staking!
Vega staking is very simple - You can get staking in 3 simple steps! Start here.
1. Connect your wallets:
Since VEGA tokens are ERC20 tokens on the Ethereum Network, the first step is to connect a wallet holding the tokens (i.e. via Metamask or anything similar for that matter, on the Ethereum Mainnet).
You can use the Metamask Chrome extension to connect your Ethereum wallet within seconds!
Once you Click Connect Vega wallet you should be able to connect your wallet through this window below.
2. Associate your tokens:
Now we have to associate your tokens with your VEGA wallet. For this all you have to do is select “Associate VEGA tokens with Wallet” as seen below.
Then select your wallet and the amount you want to stake.
Note: always make sure to double and triple check your public key.
Click Approve VEGA tokens for staking on Vega and you should see a confirmation as below.
Click Associate VEGA Tokens with key and you should see a confirmation
Done and done! You are now ready for the last step!
3. Nominating your Stake:
After selecting your validator, click on the Add button
You should see this confirmation below.
BOOM done! You are now a VEGA staking master!
Some important information regarding Rewards and Governance:
Rewards calculation:
Rewards = (rewards per epoch x 365) / total Vega staked
As per Vega, As trading is not enabled on the Restricted mainnet and no economic value is created, rewards are defined so that validators can comfortably run their infrastructure. For every epoch, 11.7% of rewards are distributed between validators and 88.3% between token holders (this ratio is subject to change as this is defined through community governance).
Staking rewards will be made available by the protocol as follows:
Staked tokens can be used to create and vote on community proposals. Check out our First look article here for more information.
The primary on-chain governance mechanic in Vega is voting by network participants based on their stake within the scope of the poll, for example:
Lastly, I would like to leave you with this.. Happy Staking!
Read more about Vega:
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