Bake ꜩ for Me

Frequently Asked Questions

html web templates

How much can be delegated to your service?

The exact amount is somewhat complicated to calculate and depends on a number of factors that are beyond our control and are frequently changing. Some block explorers will show an estimated amount. For example, tzstats.com will display our staking balance compared to our staking capacity. If our staking balance is lower than the displayed staking capacity, it means we are probably not over-delegated and can accept more delegated funds. If you're still not sure you can always contact us to verify that we can cover your delegation.

While every reasonable effort will be made to increase our bond as necessary to cover delegated balances, if we have not explicitly agreed to accept your delegation then we cannot guarantee payouts will be made to you, e.g., in case of over-delegation.

When can I expect my first payout?

The short answer is about 36-40 days after you first delegate funds to us. The reasons for this seemingly long delay requires a more detailed explanation.

The Tezos network grants baking rights based on the number of rolls a baker had staked on the network 7 cycles ago. This means that we can't begin earning rewards from your delegation until about 7 cycles have passed from the time you initially delegated to us. After those 7 cycles have passed we can begin earning rewards from your delegation. However, all rewards we earn through baking are locked in the Tezos blockchain for 5 additional cycles before they're made available to us for distribution at the beginning of the sixth cycle. Thus there is a delay of 7+5=12 full cycles before a payout is possible. A single cycle lasts approximately 3 days under optimal network conditions, so 12 cycles each lasting 3 days equals 36 days. Additionally, there is a chance that the network won't count your delegation until the cycle after you delegate funds to us, which would result in one more cycle delay, which is why we round it up to about 40 days.

Subsequent payouts should occur each cycle thereafter.

Do my rewards compound?

Yes!

Payouts are made back into the address that stores your delegated funds. This means the total amount you have delegated will increase with each payout.

How do you calculate payouts?

Payouts are made based on your share of all staked funds.

For example, if you delegated 1,000 ꜩ to us, bringing our total staking balance to 25,000 ꜩ, then your share would be 1,000/25,000 (which is 4%) of the rewards earned. Our fee would be deducted from your share prior to making a payout. For example, a 4% gross share with a 10% fee would result in 3.6% net share.

What about over-delegation?

In case of over-delegation, rewards will be given on a first-come, first-served basis, with no guarantee of payouts made to those who have delegated to us beyond our limit.

What if I still have questions?

Contact us.