What is delegation in Cardano staking?
Delegation does not involve a transfer of funds. It simply gives a staking pool permission to use your ADA to participate in producing blocks for the blockchain. You will be rewarded in proportion to the amount of ADA delegated.
Where do I stake Cardano?
NBX operates what is called a staking pool, to which customer funds are delegated.
What is Cardano staking?
Staking in Cardano is having your held ADA (what you have at stake) used in a process that helps secure the blockchain. In return, you get rewards from the protocol.
What is the saturation point for staking on Cardano?
At the time of writing, this was around 70 million ADA (per October 2022) to a single staking pool. This is subject to change. NBX will monitor this carefully to make sure customers have optimal rewards from staking.
Can I lose ADA by staking?
You do not risk losing ADA from penalties or “slashing”. However, market volatility does affect what price you can sell your ADA for. NBX also takes a cost for transactions made during staking.
Is my staked ADA locked up for a long time when I stake?
No. When staking in Cardano you can also withdraw your stake, and there is no lock-up period. NBX still has to process all the transactions, but there will not be any lock-up periods for Cardano staking.
Does staking help with the development of Cardano?
Every 5th day 20% of the pot for rewards automaticall goes to the Cardano treasury and is redistributed for development through governance. In this way, staking not only helps secure the network, but also contributes to development on Cardano and its ecosystem.