Learn how to stake Cardano (ADA) on the Trezor Model T via the Trezor Suite application.
Staking is the process used for validating transactions on blockchains that use the so-called 'proof of stake' consensus mechanism, with Cardano being one of the best-known examples.
Unlike Bitcoin and other 'proof of work'-based cryptocurrencies, Cardano users participate in the network governance by delegating their funds.
Users can either run their own stake pool and participate directly, or delegate their ADA to an existing staking pool, combining the weight of many users to compete for rewards from creating blocks.
By staking ADA, you can earn rewards as a form of passive income for any Cardano transactions your pool validated during one epoch, which is a 5-day cycle. Staking helps keep validation decentralized, supporting the Cardano network and contributing to its stability.
Yes, your funds are safe, as long as you keep your private keys (recovery seed) stored securely offline using your Trezor hardware wallet.
The Trezor stake pools can be seen on a Cardano pool explorer at the following addresses:
By delegating to a Trezor stake pool, you are eligible for a portion of rewards from any blocks created by the pool. A portion of these rewards are reserved as fees used to maintain the pool.
You can send your funds elsewhere at any time, as long as you un-stake them. You can even send all of your funds to an exchange and sell them. If you do nothing, your funds will be automatically re-staked to the same pool at the end of each epoch. You will need to de-register the stake key in order to retrieve your 2 ADA deposit.
You can only delegate the full balance of your wallet to one pool at a time. If you wish to delegate to multiple pools at once, you must send a portion of your balance to a different wallet. You can either create a new Cardano account via ‘My accounts’, or you can use a wallet associated with a different passphrase or recovery seed.
The delay between delegating your funds and receiving rewards is a result of the following sequence of events:
In the following epochs, you will continue to receive rewards based on blocks created two epochs earlier. Rewards are added to your staked total, compounding over time to increase the probability of rewards.
If you decide to stop delegating your funds to one stake pool and switch to another, you will continue to receive rewards from the previous pool for two epochs, and on the third you will receive rewards from the new pool. If you are not delegating during a snapshot, you will need to wait the full four epochs to receive rewards again.