Delegating XTZ Baking Process with Tezos Restore Wallet

Delegation of Tezos is a much more popular practice than baking the tokens yourself as it doesn't fortify the user to invest in a roll of XTZ i.e. 8,000 Tezos (as a baker must own at least 1 roll of Tezos). 

Delegators often come across numerous questions like if their Tezos are blocked once delegated or why aren't they receiving any rewards even after delegating their tokens? Well, if you are a beginner and feel stuck, we are here to help you out! 

The post revolves around simplifying the procedure for delegating Tezos with Tezos restore wallet and answering some common questions that could arise if you lack technical knowledge in the field of delegation. 

Let’s get started! 

Why do I Need to Delegate my XTZ Tokens? 

Some of our readers may wonder – why should we delegate our Tezos tokens? These readers may belong to two different categories – first, the ones who own a roll of Tezos and second, the ones who don't, and surprisingly, delegation can be a better option for both the categories. 

Don’t believe us? We’d love to put some light on this. Here are the reasons why delegation proves to be a profitable resort.

Category 1: if you don’t own a complete roll of Tezos 

If you belong to the first category i.e. the ones who don't own 1 roll of XTZ, then you have no other choice than to delegate your Tezos as baking requires at least 1 XTZ roll. You can always delegate your XTZ tokens to baker groups and enjoy a decent revenue-sharing ratio (you may find several baking groups on the internet).   

Category 2: if you own 1 roll of Tezos 

It's normal to ask why to go for delegation if you are eligible for baking i.e. you own 1 roll of Tezos. Well, delegation is a great option, and given below are the reasons to justify this.  

• Even if you manage to get a roll, it doesn’t guarantee you a chance to bake as the participant with more rolls has a higher probability of baking the upcoming block. 
• Every baker has to necessarily keep 512 XTZ as security deposits, which is blocked for 5 cycles or approximately 14 days.    
• Baking XTZ tokens demands decent technical knowledge and if you're a beginner, you may find it tough to make it through the process. 
• The baker may lose all his reward if he's not connected to the Tezos network during critical times.   

Though baking offers you attractive returns, which is in the form of the Tezos that the baker bakes (16 Tezos/block), that's only possible if you get a chance to bake. The baking algorithm always prioritizes the participants with more rolls and thus, you'll get to bake only if you get selected by the algorithm.

Is XTZ Delegation a Safe Process?

Yes, the delegation of Tezos offers extreme security to your holdings. Your XTZ tokens get blocked once you enter into a delegation contract and thus, you're just delegating your rights. You can spend these tokens whenever you feel like it. 

Delegating Your XTZ Tokens with Tezos Fundraiser Wallet

Tezos fundraiser wallet is among the most versatile XTZ wallet a user can go for and like the majority of the wallets, this wallet also facilitates quick and convenient delegation of the XTZ tokens. The developers have tried to make the wallet's UI extremely simple so that the users don't face any trouble in delegating their tokens. 

Here are steps to delegate your Tezos on XTZ wallets like Tezbox. 

• Opening the KT1 tab

1. Open the wallet and visit the KT1 account 
2. Proceed by clicking on the “delegate” tab 

• Selecting a baker 

1. The user is required to select the desired baker once he accesses his/her KT1 account. Popular wallets like Tezbox offer a drop-down list to choose from from some existing bakers. If your desired baker doesn't appear in the drop-down list, you may click on the "custom" option and proceed by pasting your baker's address. 

**Going for custom bakers facilitates easy verification of the address and thus, it's recommended to use this option. 

• The final step

1. Finish by clicking on the “update delegate” option 

Checking Your Delegation Status

It must be noted that delegation is not an instantaneous process. The delegator needs to wait for some time before the delegation is approved. 

Pending Delegation 🡪 Delegation Confirmed 🡪 Delegation Active

Here is a detailed guide of different stages in delegating the XTZ tokens. 

• Pending order 

Pending order in the process of delegation lasts for approximately 6 days i.e. 2 cycles (because 1 cycle is equivalent to 4096 blocks that make 4096 minutes or 2.8 days). 

If the wallet is claiming your delegation as "pending", this implies that delegation is successful but the rights are yet to be transferred. There is always a delay in the delegation as this helps in preventing abuse. 

• Confirmation of delegation 

A confirmed delegation is an affair of 5 cycles or 14 days. The baker now owns the future baking rights once delegation is confirmed i.e. he can now endorse and produce XTZ block in the future. And thus, you can begin estimating your staking rewards. 

• Active delegation 

Delegation is categorized as “active” when the delegator starts to earn rewards for staking. The participant needs to wait for 20 days before his delegation is stated as an active delegation.  

Our Views on Tezos Delegation 

Delegation of Tezos always remains in your favor and thus, is the best resort for average users. Although many users get tempted by the staking rewards and returns that baking offers, they ignore the hosting charges, the risk of losing all their money while double baking, and the time they need to invest in baking. 

In The End

We could add another benefit of Tezos to our list – the facility to delegate your stake. Delegation is the safest way of making money and thus, XTZ tokens are definitely the most affordable and promising investment alternative.