Cosmos (ATOM) Staking

About Cosmos (ATOM)

Cosmos is a decentralized network of independent, scalable, and interoperable blockchains, often referred to as the "Internet of Blockchains." Founded in 2014 by Jae Kwon and Ethan Buchman, and supported by the Swiss non-profit Interchain Foundation, Cosmos aims to address the challenges of scalability and interoperability in blockchain technology.

The network utilizes the Tendermint consensus algorithm, a Byzantine Fault Tolerant (BFT) protocol that ensures fast finality and security across the ecosystem. This architecture enables the creation of application-specific blockchains, known as "zones," which can operate independently while seamlessly communicating with each other through the Inter-Blockchain Communication (IBC) protocol.

ATOM, the native cryptocurrency of the Cosmos Hub - the central blockchain that connects all zones - plays a pivotal role in network governance and security. Holders can stake ATOM to participate in consensus, validate transactions, and vote on protocol upgrades, thereby contributing to the network's overall health and evolution.

What Makes Cosmos Special?

Cosmos distinguishes itself by facilitating interoperability among heterogeneous blockchains, allowing them to retain sovereignty while engaging in seamless data and asset transfers. This approach mitigates the scalability issues and high fees often associated with monolithic blockchain architectures.

The Cosmos SDK, a modular framework for building custom blockchains, empowers developers to create optimized, application-specific chains without the constraints of existing platforms. This flexibility fosters innovation and enables tailored solutions across various industries.

By promoting a collaborative ecosystem of interconnected yet autonomous blockchains, Cosmos paves the way for a more scalable, efficient, and inclusive decentralized future.

Cosmos Staking FAQ

How much can I make staking ATOM?

The return from staking ATOM varies based on the network's overall staking participation and specific validator commission

How do I receive my ATOM rewards?

ATOM rewards need to be claimed. Visit the Keplr dashboard to claim your staking rewards

When can I start earning rewards with ATOM?

You can start earning staking rewards once your ATOM tokens are successfully delegated to a validator

Can I sell ATOM while it is locked up?

Staked ATOM tokens cannot be sold, they need to be unstaked first. The unstaking period for ATOM is 21 days

What are the risks around staking ATOM ?

Staking ATOM comes with risks like slashing (penalty for a malicious validator), price volatility, and liquidity risk (inability to sell during the lock-up period).

What consensus algorithm does ATOM use?

Decentralized proof of stake