How to Stake LSK Tokens, receive voting power, and staking rewards!
LSK staking is LIVE! Get ready to unlock the full potential of your involvement with the Lisk DAO through LSK staking! By staking your LSK, you gain a voice in Lisk's decision-making process and play a crucial role in shaping its future. But that's not all— our innovative staking system offers attractive rewards based on your commitment duration, ensuring that your dedication is both impactful and rewarding. During the first month of the DAO launch, we allocated 24M LSK! So what are you waiting for? Let’s get into how it works 👇
This Article Covers
- Staking Overview
- How to Earn Staking Rewards
- How to Stake LSK
- How to Pause the Countdown
- How to Claim Rewards
Staking Overview
Staking is available through the Lisk Portal. Go to the "Stake Tokens" tab, choose the amount you want to stake, and the locking period from 2 weeks to 2 years. The longer the locking period, the higher your staking rewards, and you have a larger potential voting power boost.
Need to unlock your tokens early? No problem!
We provide the "Early unlock" option, which involves paying an early unlock fee and waiting for a 3-day emergency unlocking period. The fee is proportional to the remaining staking period; learn more about it here.
Earn Staking Rewards
To incentivize your participation in governance, we have designed a reward system that is fair and transparent. We have allocated 24 million LSK tokens to be distributed as rewards over the next 3 years, with 8 million LSK allocated per year. Your rewards are calculated daily based on the amount staked by you and other users, ensuring that everyone's contribution is recognized. The longer you lock your tokens, the higher your daily rewards, reflecting the significant value of your long-term commitment in the governance.
Our rewards system is time-weighted, meaning you receive higher rewards the longer you commit to staking.
Staking for the HodlerDrop
Earn up to 25,000 LSK in airdrop, depending on the number of LSK you hold! You are eligible for 10% of your migrated LSK amount, up to 250,000 LSK. A minimum of 50 LSK is required to participate. Remember, the HodlerDrop only supports self-custodial wallets!
To unlock your full HodlerDrop potential, ensure you meet the following criteria:
- Hold 0.01 ETH at the moment of claiming.
- Delegate voting power in the Lisk DAO.
- Stake 50% of your migrated LSK for at least 30 days at the moment of claiming.
- Stake 50% of your migrated LSK for at least 180 days at the moment of claiming.
While not mandatory, completing these steps will unlock your full HodlerDrop potential!
How to Stake LSK Tokens
Note: You can stake any amount of LSK tokens, starting from a minimum of 0.01 LSK.
- Connect your Lisk wallet to the Lisk portal and select the network you want to stake on. Make sure you're on either Lisk or Lisk Sepolia Testnet.
- Choose the amount of LSK you wish to stake. We’ve also added a percentage option that allows you to stake a certain percentage of your total LSK balance.
- Set the locking period. By setting the locking period, you define the length of time your LSK tokens will be staked.
- P.S. As long as the tokens are staked, they are locked for any other usage.
- Note: You can create multiple locking positions with different amounts and durations.
- Preview the ROI & APR information based on the amount & duration staked. Additionally, the following details can be previewed:
- 🔓 The unlock date
- 🗓 The voting power
- Click on the stake button. This will prompt you to initiate the stake and approve the spending cap for the staking contract.
- Note: You can skip this step if you already approved a higher or the same spending cap for the staking contract during a previous stake.
-Confirm the spending cap for the Staking contract by clicking the approve button in the prompt.
-Create your locking position by clicking the stake button and approving the transaction in your wallet.
Just like that, you’ve successfully staked your LSK tokens 💥
When you finish the staking process, you’ll get voting power to participate in Lisk Governance. To use your voting power to participate in the Lisk DAO, delegate your voting power to yourself or a delegate of your choice. More on the Lisk DAO here.
Boost Your Voting Power and Participate in Governance
Your voting power is proportional to the amount of tokens locked. Specifically, 1 locked LSK provides 1 vpLSK. Additionally, you can pause the countdown of the locking period to boost your voting power proportional to the remaining locking duration, potentially increasing it by up to 200%.
How to Pause the Countdown
Note: Pausing your locking position can boost your voting power up to 200%.
- Go to your Staking Dashboard in the Lisk Portal.
- Connect your wallet. A list of your locking positions will appear. To expand, click on the locking position in which you wish to pause.
- Click on the ‘Pause Position’ button, and a detailed prompt will appear.
- To complete the pause, carefully read the prompt, click ‘Pause Countdown’ and the action in your wallet. When you reload the page, you should see the voting power displayed in the staking dashboard has increased accordingly.
Claiming Rewards
When claiming, you will receive the rewards you are eligible for into your account.
- Go to the ‘Claim tab’ of the Stake Tokens page on the Lisk Portal.
- Select the network you want to claim from. This should be either Lisk or Lisk Sepolia Testnet.
- Click the ‘Claim Rewards’ button and verify the rewards ready to be claimed in the prompt that opens. Click the ‘Claim Rewards’ button again to proceed with the claim.
