How to Stake Namada (NAM): A Beginner's Guide - Figment
How to Stake Namada (NAM): A Beginner’s Guide
Brady
Protocol Marketing Manager
Published
December 5, 2024
What is Namada?
Namada is a privacy-focused blockchain that uses Cubic Proof-of-Stake (CPoS) consensus mechanism. By staking your NAM tokens, you can participate in securing the network while earning rewards. This guide will walk you through the complete staking process.
What to Know About Namada Before Staking
NAM Token
The NAM token is critical to the operation of Namada, and plays four key roles in the protocol:
Staking: NAM tokens are used as the economic bond asset for validators, disincentivizing malicious behavior.
Fee Payment: All transaction fees on Namada are paid using the NAM Token.
Governance: Putting forth a governance vote on Namada requires NAM, and votes are accepted or rejected on the basis of the amount of NAM that votes for or against them.
Public Goods Funding: A portion of total annual NAM inflation is allocated to fund public goods like technical research, educational materials, and other often-underfunded but important contributions to the ecosystem.
NAM Governance
Namada’s governance model is a blend of on-chain and off-chain mechanisms, ensuring a democratic and flexible approach to decision-making. The governance structure ensures that Namada remains adaptable and responsive to the evolving needs of its users.
Key NAM Staking Considerations
Before staking NAM, it is important to understand a few key staking considerations:
Unbonding period: 14 days
Rewards: Non-autocompounding
Choosing a Validator to Stake Namada
Choosing the right validator for staking NAM tokens is a critical decision for anyone seeking to optimize their rewards while minimizing risks. The role of a validator is pivotal in maintaining the network’s integrity and ensuring consistent rewards. This is where Figment stands out as a leading Staking-as-a-Service (StaaS) provider. With our robust and transparent infrastructure, we optimize for safety, uptime and efficient network participation, all of which are crucial for maximizing staking rewards while minimizing risks.
By choosing Figment as your validator for staking NAM, you’re not just participating in network security and governance; you’re also aligning with a leader in the staking industry known for its reliability and security.
How to Stake NAM
Step 1: Install your wallet & open the Namadillo interface
To create a self-custodial wallet, add Namada’s official Keychain wallet to your web browser. When creating your wallet, ensure that you back up the recovery phrase.
Once you have successfully created a Keychain wallet, navigate to Namada’s Namadillo interface.
Step 2: Connect your wallet
Connect your wallet in the top right corner and approve this action in your browser.
Step 3: Click on “Staking” in the lefthand menu of Namadillo
Once you click into the staking interface, click “Stake” where you will be prompted to select a validator.
Step 4: Select a Validator, Stake your Tokens
Using the search bar, search for “Figment” and then input the amount of NAM you wish to stake. After entering the amount, click “Stake” and confirm the transaction in your wallet.
Once the transaction is confirmed, congratulations! You have successfully staked NAM to Figment.
Figment Namada Validator address: tnam1qxq08djyzzrhgchwv2datwhk3cghtseg953ruh2y
Figment Involvement with Namada
Figment has been an active participant in the Namada ecosystem, operating on the testnet since November 2022. Our experience with other Cosmos-based blockchains, including Atom, Osmosis, Celestia, and dYdX, positions us uniquely to provide robust validator services for Namada from the outset of its mainnet.
Questions about staking? Reach out to our team today.
About Figment
Figment is the leading provider of staking infrastructure. Figment provides the complete staking solution for over 1500 institutional clients, including asset managers, exchanges, wallets, foundations, custodians, and large token holders, to earn rewards on their digital assets.
The information herein is being provided to you for general informational purposes only. It is not intended to be, nor should it be relied upon as, legal, business, tax or investment advice. Figment undertakes no obligation to update the information herein.