Staking is when you decide to lend some of your tokens to a blockchain platform. The entirety of loaned tokens helps the blockchain to validate transactions (a form of mining) more efficiently and securely, through a mechanism called Proof of Stake. You get the benefit of providing that security in the form of token rewards. At IoTeX, the staking interest is up to ~11% APY.

Staking also guarantees trust, as you are essentially acting as an investor/miner in the blockchain by ensuring the validity of new transactions being added. While your tokens are being used by the chain, you will be rewarded a percentage of interest back over time as well as certain voting powers.

When token-holders “stake” their IOTX, they generate voting power. They can use this power to participate in network governance on issues that directly affect them.

Any token-holder who stakes IOTX can vote for one or more Delegates. By staking/voting, token-holders not only enhance the overall security of the IoTeX Network, but also earn up to 11% annualized interest on their staked IOTX.

Your stake duration is essentially a time countdown to when you will be able to unstake your IOTX. When the duration hits 0, your deposit is no longer locked.

Next, by turning stake-lock ON, this “pauses” your duration countdown until you decide to turn it OFF and the countdown resumes. The benefit of stake-lock is that you earn more bonus votes/rewards while it is on. After you turn the stake-lock OFF, your stake duration will resume counting down to 0. Remember, if you turn stake-lock back ON at any point during your countdown, your stake duration will restart to the original amount in which you set it. (i.e. If on day 50 of your 100 day stake duration, you choose to turn stake-lock ON. When you turn it OFF, you must now wait 100 days to unstake).

Note: Once the stake duration has expired, the unstaking process takes an additional days. After this you may withdraw your tokens to your wallet.

To participate in the consensus and governance process of IoTeX you must select a delegate/s. With IoTeX’s Delegated Proof of Stake (DPoS), delegates vote with your staked tokens on your behalf. Different delegates give their voters different rewards. For instance, choosing a smaller delegate may earn you more rewards, but there are varying benefits to choosing larger delegates as well. Additionally, some delegates are HERMES delegates. To learn more about that, visit here.