Staking your crypto is one of the easiest ways to grow your holdings, and Constellation (DAG) gives you a powerful reason to get started. Built on a unique directed acyclic graph (DAG) architecture, Constellation is not just another blockchain project, it was launched in 2017 with a big mission, i.e., to solve the major problems traditional blockchains face, like poor scalability and centralisation.
Unlike normal blockchains, Constellation uses custom state channels and serverless architecture to securely process massive amounts of data. It also makes it super simple to connect to external data through easy-to-use APIs. With this cutting-edge technology, Constellation is pushing smart contracts into a new era.
In this guide, you will learn everything you need to know about how to stake Constellation (DAG) tokens. Staking lets you support the network and earn rewards at the same time. It’s not about buying DAG, but about putting your tokens to work. Let’s dive in and see how you can start staking Constellation today!
How to Stake Constellation (DAG)?
Staking Constellation (DAG) allows you to support the network and earn rewards by delegating your tokens to a validator. The process is straightforward once you understand the steps involved. Here’s a detailed guide to help you get started.
Prepare Your Wallet
The first step is to set up a wallet that supports Constellation (DAG). The Stargazer Wallet is the most recommended option for staking purposes. Download the Stargazer Wallet from the official website, install it on your device, and complete the setup process.
Make sure you carefully store your seed phrase, as it is crucial for recovering your wallet. Without a properly secured wallet, you cannot move forward with staking or accessing your funds.
Acquire DAG Tokens
After setting up your wallet, you need to fund it with DAG tokens. You can buy DAG from a supported cryptocurrency exchange or transfer it from another wallet. Ensure you have enough tokens to make staking worthwhile.
Although there is no strict minimum requirement for delegation, having at least 100 DAG is commonly suggested to see meaningful rewards. Moreover, if you aim to operate your validator node, a collateral of 250,000 DAG tokens is required.
Access the Staking Portal
With your wallet funded, head over to Constellation Network’s official staking platform. You can access it through the DAG Explorer or platforms like Lattice. Click on the “Connect Wallet” button on the portal and select your Stargazer Wallet to authorise the connection. Once connected, you will be able to view your available DAG balance and any existing staking activities linked to your wallet.
Choose a Validator
The next step involves selecting a validator to delegate your tokens. Validators play a key role in maintaining the security and efficiency of the network. When choosing one, assess factors like commission rates, which usually range between 5% and 10%, historical performance, and overall security record.
Some validators may also support specific community initiatives, allowing you to align your delegation with causes you believe in. Take your time to compare different validators using the platform’s filtering and sorting tools.
Delegate Your Tokens
Once you choose a validator, initiate the delegation process. Click on the “Stake DAG” or “Delegate DAG” button and specify the amount of DAG you wish to delegate. Some platforms offer quick selection options like “50%” or “Max” to make the process easier.
After entering the amount, your wallet will prompt you for confirmation. Approve the transaction to complete the delegation. Once processed by the blockchain, your tokens will be officially staked, and you will start earning rewards.
Monitor and Manage Your Staking
After staking, it is important to monitor your delegation and earned rewards. The staking dashboard provides information about your active delegations and validator performance. Rewards usually compound automatically into your staking balance. If you decide to unstake your tokens or claim rewards, you must initiate an undelegation process.
Keep in mind that undelegation often comes with a lock-up period, typically around 21 days, before your tokens become fully liquid. Regularly checking your dashboard helps ensure you maximise your staking rewards and remain informed about your validator’s performance
Read More: How to Buy Constellation
Popular Video Guides On Staking Constellation
Best Places To Stake Constellation (DAG)
Constellation Network's website is the hub for its blockchain platform, built to solve scalability, security, and interoperability challenges. Using the Directed Acyclic Graph (DAG) architecture enables parallel transaction processing. It's the Hypergraph Transfer Protocol (HGTP) that allows seamless data exchange across networks. Through the DAG token, users can stake, govern, and support the growth of scalable Web3 projects.
Pros:
- Employs DAG architecture for high scalability and efficient transaction processing.
- Offers fractional soft node staking, allowing participation with as little as 100 DAG.
- Provides delegated staking options, enabling users to earn rewards without running a node.
- Features zero transaction fees, enhancing cost-effectiveness for users.
- Supports cross-chain interoperability through the Hypergraph Transfer Protocol.
Cons:
- Requires a minimum of 250,000 DAG to operate a full node, which may be a barrier for some users.
- Delegated staking, once enabled, is permanent and cannot be disabled.
- Staking rewards can vary based on network participation and market conditions.
Bitrue is a centralized cryptocurrency exchange that offers a comprehensive suite of services, including trading, lending, and staking. It supports a wide range of digital assets and provides users with opportunities to earn passive income through its staking programs. Notably, Bitrue is among the platforms that facilitate staking for Constellation (DAG), allowing users to earn rewards by participating in the network's consensus mechanism. The platform's user-friendly interface and diverse staking options make it accessible to both novice and experienced crypto investors.
Pros:
- Offers flexible staking options with competitive Annual Percentage Yields (APYs).
- Supports staking for a variety of cryptocurrencies, including Constellation (DAG).
- User-friendly interface simplifies the staking process for beginners.
- Provides additional services like trading and lending, offering a one-stop solution for crypto enthusiasts.
- Regularly updates and adds new staking programs to cater to user demand.
Cons:
- As a centralised platform, it requires users to trust the exchange with their assets.
- Staking rewards can vary and are subject to change based on market conditions.
- Some staking programs may have lock-up periods, limiting immediate access to funds.
Benefits of Staking Constellation (DAG)
Staking Constellation (DAG) offers you a simple, rewarding, and meaningful way to engage with the blockchain ecosystem. Whether you aim to grow your crypto holdings or contribute to the future of decentralised technology, staking DAG tokens provides several distinct advantages. Let’s walk through the key benefits you can enjoy when you stake Constellation.
No Need for a Complex Setup
You do not have to worry about setting up or maintaining a validator node to stake DAG tokens. Constellation offers delegated staking, which means you simply choose a trusted validator and delegate your tokens through an easy-to-use staking portal. This makes it perfect for those who may not have technical knowledge but still want to participate actively in securing the network and earning rewards.
Earn Attractive Rewards
Staking Constellation can provide you with two layers of rewards. You receive a stable annual yield, usually around 3% APR, and additional variable rewards. These bonuses may include inflationary emissions and special tokens, such as metagraph or L0 tokens, depending on the validator you choose. This dual reward structure makes staking a reliable and attractive source of passive income.
Support Projects You Care About
By staking your DAG tokens, you can select validators whose missions and projects match your personal values. Supporting validators aligned with causes you believe in helps you feel more connected to the ecosystem while also assisting in the growth and resilience of projects you care about. Your staking choices can help shape the future of the network.
Enjoy Flexible and Transparent Management
Constellation’s staking system gives you full control over your staked tokens. You can manage your delegation easily, move your stake between different validators, and track your rewards in real-time. This flexibility allows you to adapt your strategy whenever needed without facing complicated restrictions. Transparent reporting ensures you always know exactly how your tokens are performing.
Strengthen Network Security and Decentralisation
Every token you stake plays a vital role in strengthening the Constellation network. Your participation helps validate transactions, maintain trust across the system, and increase decentralisation. A decentralised network is more resistant to attacks, more scalable, and better positioned to serve its growing community. By staking, you actively contribute to building a stronger and more sustainable blockchain ecosystem.
Frequently Asked Questions
How Are Staking Rewards Distributed to Participants?
Staking rewards in the Constellation network are distributed based on the amount of DAG tokens staked and the performance of the chosen validator node. Delegators receive a share of the rewards proportional to their stake, minus a commission fee set by the validator, typically ranging between 5% and 10%. These rewards are automatically airdropped into your wallet, providing a passive income stream for participants.
What Is the Expected Return on Investment for Staking DAG?
The return on investment (ROI) for staking DAG can vary depending on network conditions and the performance of the validator node. Delegators can expect a fixed 3% annual percentage rate (APR) and a share of 45% of the network’s inflation emissions. Some meta graph validators may offer additional Layer 0 token rewards, potentially increasing the overall ROI for participants.
Is There a Lock-Up Period During The Staking Of DAG Tokens?
While delegating DAG tokens to a validator does not have a lock-up period, meaning you can switch validators at any time, there is a 21-day unwinding phase when you decide to fully withdraw your delegation. During this period, your tokens are temporarily locked as the network processes the withdrawal, ensuring a smooth transition without sudden shifts in liquidity.
Can I Stake DAG Tokens Without Running a Validator Node?
Yes, you can stake DAG tokens without operating your validator node by delegating your tokens to an existing validator through platforms like DAG Explorer. This method allows you to earn staking rewards without the technical complexities and responsibilities associated with running a node, making it an accessible option for most users.
Are There Any Minimum Requirements for Staking DAG?
Staking DAG doesn’t necessitate a minimum amount when delegating to a validator node. This flexibility allows users with varying token holdings to participate in staking. However, if you aim to operate your validator node, a collateral of 250,000 DAG tokens is required. This substantial amount ensures that node operators have a significant stake in the network’s health and security.
