CURRENT FEE: 15%
Our baking video answers many of the most frequently asked questions. Be sure to check it out first!
What is a delegate?
A delegate is any Tezos identity/account, prefixed with "tz1" (not "KT1" which designates a contract) that is configured to participate in network consensus, block generation, and endorsement signing. A delegate works in conjunction with a Tezos node that has a full copy of the Tezos blockchain. All bakers are delegates by default.
Can I be a delegate?
Yes! If you are technically inclined to manage a Tezos node, maintain security/software patches, updates, and are willing to post up a security deposit for each block/endorsement you make. Tezzigator handles all of this for you anonymously and securely with zero risks to you.
Do I need a delegate?
If you don’t stake/bake on your node, or delegate your baking rights to someone who will pay rewards, your stake's value will diminish in comparison to others who do delegate based on the system of non-dilutionary inflation. A minimum of 10,000 tokens is currently needed to stake/bake. We strongly encourage all holders of less than this amount to consider delegation.
How do I choose a delegate?
There are many excellent resources to conduct this research. Check the resources page. Each holder is encouraged to conduct their own research, but a delegate should at least be transparent about fees and offer reliable service with minimal downtime.
How do I delegate my tokens?
First, note that delegation is an operation on the Tezos protocol itself. You will always retain ownership rights of your tokens when delegating. You will not be required to send your tokens. We anticipate that scammers may attempt to steal Tezos by advertising a delegation service requiring you to send tokens. Be extremely wary of any service that attempts to obtain your tokens in this manner. There are several wallets available to store your tokens. Look for one that offers delegation in a simple, intuitive manner. Some delegation services may offer their own wallet, but these will likely only delegate tokens to their service so be aware of that. Be cautious when delegating your tokens and do not send the tokens. After you complete your delegation, the tokens will still be in your wallet.
What is a bond?
A bond is a security deposit a delegate must put up to be held temporarily to ensure the delegate signs blocks and endorsements correctly. Currently, bonds are held by the protocol with the rewards for an additional five cycles after the current cycle ends.
Do I have to pay these security deposits?
Yes, if you run a node and bake on your own. Those deposits are there to discourage you from being malicious. If you choose to delegate to Tezzigator, Tezzigator fronts the security deposits. No one but you can spend your XTZ, and they are never at risk of being revoked due to malicious/incompetent baking.
Does my XTZ get locked when I delegate?
No! You are free to transfer/spend your funds as you wish, as well as to change your delegate at any time. Note, the blockchain consensus algorithm randomly takes periodic balance snapshots for blockchain accounting. Your balance and delegation at the time of the snapshot are what matters for a delegate crediting you.
So how do I start the process?
If you are using one of the available wallets, look for a "Delegate" or "Set Delegate" option in the interface. Alternatively, use your Tezos client to send a "set delegate" operation (blockchain "transaction") using our IDENTITY address listed up top as the delegate.
What’s an Identity? Contract? Account?
When you create a Tezos account, there are two parts to it. There is the “tz1” identity used for delegate duties. Then there is the “KT1” contract (or account) which can delegate out. Only KT1 types can delegate out, and they must do so to a tz1 identity.
What are your fees? When can I expect a payout?
Tezzigator's fee is currently 10% on the new HSM system and 15% on the original system. All who delegate to Tezzigator will receive distributions of block rewards, endorsement rewards, denunciations, and transaction fees, minus our 15% fee. When we transfer your earnings, we use a microscopic ꜩ0.00128 transaction fee to the blockchain deducted from your earnings. See our Payments Update for information on how payments will be handled.
What about security?
Security is a top priority for Tezzigator. All baking will be done by secure Hardware Security Modules. We utilize TLS encryption *everywhere*.