Tezos Commons :: Tezos: Leading the Way in Staking Innovation
September 17, 2024How Tezos — the First True Proof of Stake (PoS) Blockchain — Has Redefined Staking for Everyone.
Tezos has established itself as a pioneer in the blockchain world by being the first major blockchain to introduce a truly decentralized and efficient Proof of Stake (PoS) mechanism. Many chains have followed in its footsteps, adopting similar mechanisms over time.
For instance, Ethereum transitioned from Proof of Work (PoW) to PoS, and even though delegations aren’t natively built into their protocol, Ethereum staking services have adopted terms like “Delegate” and “Delegators” — concepts that have long been native to Tezos. Cardano’s “liquid staking,” praised as an innovative feature, has actually been a staple of Tezos since day one.
Over time, Tezos has continually improved its staking model, making it one of the most accessible, secure, flexible, and rewarding systems available. Let’s take a deeper look into these qualities.
Accessibility: Staking Without Barriers.
One of Tezos’ standout features is its unparalleled accessibility. Unlike many other blockchains, Tezos imposes no minimum staking requirement, allowing anyone to stake their tez (XTZ) with any amount, making it one of the most inclusive staking ecosystems in the blockchain space.
In contrast, Ethereum requires 32 ETH to stake as a validator — putting direct participation out of reach for most users. While third-party services and staking derivatives enable staking with smaller amounts on Ethereum, these solutions often come at the cost of self-custody, requiring users to trust intermediaries. This brings us to the next point.
Self-Custody: Secure Staking from Your Wallet.
Tezos staking is all about self-custody, meaning you keep full control of your funds the entire time. You can stake directly from your wallet without moving your XTZ anywhere. Even if you use a hardware wallet like Ledger, you can stake your tez while keeping it safely offline.
Unlike Ethereum, there’s no need to send your funds to staking contracts or trust any third party. You just open your wallet, pick a baker (validator), and boom — you’re earning rewards. Plus, with the new staker role, rewards are automatically sent straight to your wallet by the protocol. Super simple, super secure.
High Rewards: Why Tezos Staking Yields More.
Right now, Tezos is offering an impressive ~16.5% APY on staking rewards, which is way higher than what you’ll find on most other blockchains. In contrast:
Ethereum 4–6%Solana 5–7%Cardano 3–6%
This boost is thanks to the latest protocol upgrade (ParisB), which introduced adaptive issuance and a new staking role. In this updated model, more emphasis is placed on locked staking versus delegations, so stakers are earning double the rewards compared to delegators.
Since not many people have jumped over to the new staking option yet, those who do are reaping the benefits of higher rewards. It’s not due to crazy inflation — it’s more of a hidden opportunity that most people haven’t caught onto yet.
Flexibility: Options for Every Staking Preference.
Another one of Tezos’ biggest strengths is the flexibility it offers in staking, providing options that cater to different preferences and levels of commitment. Whether you’re after higher rewards or want to keep your funds easily accessible, Tezos has a solution for you:
Staking: For those looking to maximize returns, staking offers significantly higher rewards, with APYs that are double what you’d earn through delegation. Keep in mind that the locking period in Tezos is ~11 days (4 cycles), which is much shorter compared to other chains. For example, Cosmos requires a 21-day unbonding period, while Polkadot locks funds for 28 days. In Tezos, you get the benefit of locked staking without having to wait nearly as long to access your funds.Delegation: If you prefer to keep your XTZ liquid, Tezos lets you delegate your funds to a Baker without locking them up. This allows you to participate in staking while maintaining the flexibility to withdraw or move your funds whenever you like, still earning rewards on your liquid balance.
The beauty of Tezos staking is that you aren’t locked into just one approach. You can choose to lock up a portion of your XTZ for higher returns while delegating the rest of your wallet’s balance to stay liquid, giving you the best of both worlds. This kind of flexibility — allowing you to strike the perfect balance between staying liquid and maximizing your rewards — is hard to find in other blockchain ecosystems, making Tezos truly unique.
Tezos has really nailed its staking system, offering the perfect mix of accessibility, control, great rewards, and flexibility. With choices that suit any staking preference, Tezos allows you to be as hands-on or hands-off as you like while still benefiting from one of the most rewarding and flexible staking models available. And with a solid ~16.5% APY, there’s no better time to jump in.
Sounds too good to be true? That’s because it really is that good. Go ahead and stake your tez today and see why Tezos staking stands out. If you want to learn more about how it all works, check out this guide I put together for an easy breakdown.
Stake your tez, earn rewards, and stay in control — Tezos makes it that simple.
Tezos: Leading the Way in Staking Innovation was originally published in Tezos Commons on Medium, where people are continuing the conversation by highlighting and responding to this story.
