Staking AKT (Akash Network) with Ledger wallet

in LeoFinance4 months ago

Let's talk a bit about Akash Network today.

AKTakashnetworkbanner.png
That's a coin I heard from @jk6276 in the first part of his serie "Decentralize Everything".
No pressure, but we are all looking forward to part 2 ;)
Namedropping is not something I like much but it's like writing an article about AVA and not tagging empoderat and trumpman, not possible at all.
And I would never have heard about this coin without him, he deserves the thanks - or the blame if the coin suddenly crash.
The objective of this post is not to deep dive in the coin use cases and tokenomics but to focus on how to stake it with your Ledger through Cosmostation.
Don't you worry, nothing very difficult. The part I've struggled the most with was the choice of the validator to delegate my stake to.

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Some context

Akash Network is a marketplace for cloud computing resources.
To make a real easy comparison, it proposes similar cloud computing services to what Amazon Web Services is offering.
The BIG difference lies in the decentralisation indeed.
Where AWS computing power is owned and controlled by a single entity, Akash Network will provide it without owning a single server.
On this marketplace entities in need of computing resources ("tenants") will be connected to providers in a cost-effective way.
It's a win-win situation where tenants enjoy a flexible process to host their applications and providers are generating profit for putting at disposal computing power.
In case you are interested and want more details you can have a look at Akash whitepaper - Akash Network & Mining Economics

On today's coingecko, AKT is at the 220th position with a price of 3.25$.
Just as a reminder the price was around 0.75$ when I heard about it first.
But why didn't I buy it before then ?

How to buy AKT ?

The main reason (and I used it as an excuse till recently) is AKT not being listed on Binance, which is my main buying platform.
I'm using Binance because of the capability to convert my FIAT currency to USDT without any fee thanks to the P2P buying/selling services !

One option to buy AKT and then transfer it out with minimal fee (0.1 AKT) is BitMax.
We'll skip the account creation and KYC stuff for the sake of "you don't care at all".
But first I had to fund my account with some USDT and the obvious solution to that was transferring some from Binance.
That's where my golden excuse comes into place.
As most of you people, I hate fees and look at what I had before my eyes to realise this transfer.
USDTtransferfees.JPG
Surreal ! I had to pay 12 USD using ERC20 or 24 USD via OMNI !
Absolutely no way to accept that except if I was a whale - or if I was a little sharper :)
There's the TRC20 option at the very bottom, with a grand total fees of 0 USD, yes none, zero.
Some questions in my mind though, is it going to work ? Can I buy AKT on BitMax with my TRC20 USDT ?
Not very confident in the result I had to do a test first, let's transfer 1 USDT and see how/if it goes through.
Bitmaxtransfer.JPG
Yeah baby ! It's all working, just need to deposit more and that's what I did.
I was now a proud owner of 167 AKT ! And ready to stake it for rewards.

How to stake AKT ?

Ledger wallet

There are few options to do that but I will discuss the Ledger staking capability through Cosmostation.
You can have a look at the following guide to clear the first steps of Ledger app installation on Ledger Live.
Once you're done with the setup, you'll be able to connect your Ledger and have access to Cosmostation interface.
Cosmonationwalletnoinfo.png
You have to select the correct option (akashnet-1) in the dropdown at the top right - I learnt that cosmos, kava and band are also available for staking through this interface.
In a glance you can read the amount of AKT you own in this wallet, your delegations and amounts associated and the pending rewards to be collected.
There's also a panel for your current delegations and the list of available delegators you might want to use with your AKT stake.
AKTMyValidators.JPG
AKTAllValidators.JPG

The reward tab design is pretty similar but will allow you to change the reward address to be used and to claim your rewards obviously.
Cosmonationreward.JPG

An interesting feature is to check all the transactions you made. Very handy to calculate all the fees you suffered from transferring your AKT in and delegating it.
Good news fees are minimal for those actions:

  • 0.00001 AKT to transfer in (don't forget the 0.1 AKT fee from BitMax to transfer out)
  • 0.005 AKT to start a delegation

AKTtrx.JPG
So far I didn't undelegate so I can't tell you how much are the fees for that.

That brings us to the real question, which validator should I chose from the list ?

Validators

Finally the crux of this article.
You could notice the validators list displayed by Cosmostation lacks of information to say the least.
How to make an informed decision with only 2 pieces of information, voting power and commissions ?
That's where mintscan website comes handy.
It will give you a full list of validators available for staking your AKT.
Mintvalidators.JPG
Pretty similar to the one provided earlier but this time you can find details for each of them.
Validatordetails.JPG
I've opted for Kava validator for the following reasons:

  • low commissions (2%)
  • Uptime (100%)
  • Self bonded rate (9%) - this is how much tokens the validator put himself into staking

On mintscan you can also find an overview of any akash address, including the amount of AKT, rewards and delegations.
mintaccountnoinfo.png

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Conclusion

I've been stupid/lazy not to push my investigation further and earlier on how to buy AKT through BitMax.
Happy it's done and can be repeated with almost no fee - and it's valid for any coin which is on BitMax and not on Binance.
Regarding AKT, sure I'm bullish on the use case and definitely looking forward to the mainnet launch planned on early March 2021.
I'm also linking a bullish view provided by jk6276.

See you on the moon ;)

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Thank you for presenting this way cheaper alternative! I've been also very lazy and did not check it. I hope you will make some good profit with AKT.

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Thanks mate !
Those tips should be known by everyone, transfer USDT without any fee or the transfer from exchanges to Hive wallet using the hive nickname only.
There's plenty more I'm sure, maybe worth a post with people adding all their tips for cheap actions :)

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That would be an awesome idea, to have an interactive post with tips&tricks.

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I've just gone in a bit harder on this myself - i used the Kepler wallet - I did download Cosmostation but it asked me what network i wanted to set up a new wallet with, I just thought 'too much for now' - Kepler (Excuse spelling) was easy.

The whole process of staking was easy thanks to JK's post.

Very useful info here I will go back and give it a read through later, I'm guessing it makes sense to stake to those people who have bonded more AKT rather than just those with low fees?

I stake to three high up accounts, seemed like a good idea to spread it around.

Nice return, nice to see it coming in.

Brrrr......

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Yep I thank JK as well, for his posts and the very first sparkle.
For the commission rate I chose a 2% validator instead of a 0% just because of how much skin they put in the game.
I'm afraid the 0% commission guys with no self-bonded stake will just hike up the commissions after their "promotion" period.

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Nice!

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More great, in-depth content.

This is what the LeoFinance community is all about!

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Thanks a lot, that’s also what I like to read haha.
Unfortunately I’m not posting often enough ;)

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More info why you see this.

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That's a first for me, and it means a lot !
Thank you very much for taking the time everyday to do this curation task.

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Thanks for the review. I like the idea of a decentralized Amazon Cloud Server. It sounds like a good project to support and accumulate. I also like the lower cost TRC20 option.

There is definitely a lot going on in this space and quick action is definitely a good habit, for the reason you illustrated.

Thanks

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Thank you for the feedback !

You know that feeling when you realised you can send HIVE from your favorite exchange to your Hive wallet just by using your Hive account nickname ? I got a similar one when I discovered the TRC20 trick :D

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Ha Ha
Good Comparison!

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I knew it would talk to some of us :D

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 4 months ago Reveal Comment

Very valid point, I guess I was pushed away by the fact they don't stake their own AKT.
My reasoning was they might just push a promotional 0% commission to attract as many people as they could before to raise commissions (because yes they can change commission rate easily).

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 4 months ago Reveal Comment

That’s right and I might do it as well.
Will cost less in changing delegation than paying the 2% commissions. Let’s try this new use case (for me) ;)

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