How To Earn WAX Rewards By Voting and Staking Your Extra WAX
Earning WAX by voting and staking are little known and often misunderstood features of the WAX Blockchain. Voting is the process of casting a ballot for Block Producers (BP’s), and staking is the process of locking up your Tokens for some period of time. Both of these processes earn you WAX rewards. Lets look at both in more detail.
Instead of charging gas fees or paying miner rewards, the WAX blockchain operates using resources. This process allows almost instantaneous transactions and eliminates transaction fees. There are three resources in the system and they are called RAM, CPU, and Network. RAM can be bought and sold as necessary so it is more like a loan than a purchase. CPU and Network are joint resources that together are called bandwidth on the blockchain. The more you stake to them, the smother your transactions will run. Staked WAX is yours and can be unstaked at any time. It will be returned to your WAX wallet after a 3 day waiting period.
Once you have staked some amount of WAX you are then allowed to vote on BP’s (the transaction validators of the WAX Blockchain) and earn WAX rewards for the effort.
Every time you or your proxy (see below) votes, you are rewarded with what are called Genesis WAX Protocol Tokens. The amount of the reward is based on the amount of WAX you have staked in relation to all the other WAX staked. These tokens can be claimed once every 24 hours, but do not expire so you can claim them whenever is convenient for you to do so. Having said that, the more often you claim, the more rewards you earn due to the power of compounding.
Genesis WAX Protocol Tokens are automatically staked at a 50/50 ratio into your CPU and NET resources. Each staked Genesis Token will produce 1 regular WAX Token over the course of 3 years, meaning that it will produce 1/1096th of 1 WAX every day for the next 1096 days. These newly produced tokens are called “Genesis Rewards” which can also be claimed once every 24 hours. The difference being that Rewards Tokens are deposited into your WAX wallet and Protocol Tokens are automatically staked.
This whole process can be done using the site wax.bloks.io. Let’s have a look:
Click the “Login” link at the top of the page. This will give the site access to your WAX wallet.
To stake WAX to your CPU and NET resources click “Stake CPU/NET” on the left side and then input the amount you want to stake to each and then click “stake” at the bottom.
Once you have staked WAX to your resources, you can vote for transaction Validators. You must vote for at least 16 Validators and you must vote weekly to remain at the maximum voting reward level.
If you do not want to vote manually each week, you can proxy your votes by clicking on “Proxies” and then choosing one that votes for your favorite validators. You can see who the proxy is voting on by clicking on their account name which is in blue on the proxies page.
You claim your rewards by clicking on “Wallet” and then “Claim GBM Rewards”. 24 hours after you have staked your first WAX tokens, the blue “Claim Vote” button will become active. Clicking that will stake Genesis tokens to your CPU and NET and begin producing regular tokens as described above. Therefore after 48 hours you can return to this page and click the blue “Claim Both” button. This simultaneously stakes your voting reward and deposits your genesis reward into your wallet.
Clicking the button resets the 24 hour timer and provides you the link to the transaction. This does not have to be done daily. Your rewards will continue accumulating until you claim them.
To see exactly how much you earned, you can click the “Account” link and scroll down until you find the rewards transactions. In the above example you can see that 10.89 Genesis WAX was divided equally and staked to the user’s resources and 2.032 WAX was deposited into the user’s wallet.