Vega: Staking Guide

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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: 

  1. Trading is disbaled, meaning that it will not be possible to create markets and trade on the Vega mainnet just yet.
  2. VEGA token holders can delegate their tokens to validators, and start receiving staking rewards for securing the network. 
  3. Governance voting is enabled, meaning the Vega community will be able to define the best network configuration in preparation for the Alpha release. 

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:

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:

  1. VEGA tokens will be distributed to validators and delegators from the on-chain treasury by the protocol.
  2. Prior to v1 Mainnet, the staking rewards will comprise almost entirely of VEGA tokens.
  3. After v1 Mainnet, the VEGA component of the staking rewards will taper off as participation on the network increases and eventually staking income will be made up almost entirely of the settlement assets of the markets on the Vega network.
  4. It will be possible to see the recent and historical APY paid by the network by visiting https://token.vega.xyz.

Governance: 

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:

  • i) for network governance issues stake would be measured in terms of a participant’s holding of the network’s native crypto asset whereas
  • ii) for market governance decisions, stake may be measured by the notional value of a participant’s net position, their market making stake or a combination of both.



Lastly, I would like to leave you with this.. Happy Staking!


Read more about Vega: 

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