How to earn WAXP Rewards by Staking and Voting
This is an update to an article that was published by the Wizards Guild on January 12, 2022.
For the past 3 years, staked WAXP earned you Genesis Rewards (spendable WAXP that was deposited into your WAX wallet whenever you claimed it.) This program has now come to an end but you can still earn WAXP for staking and voting. Staking is the process of locking up your WAXP tokens for some period of time and voting is the process of casting a ballot for Block Producers. 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 WAXP 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 WAXP you are then allowed to vote on Block Producers. BP’s are the transaction validators of the WAX Blockchain and earn WAXP rewards for the effort.
Every time you or your proxy (see below) votes, you are rewarded with WAXP tokens. The amount of the reward is based on the amount of WAXP you have staked in relation to all the other WAXP 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.
Voting rewards are automatically staked at a 50/50 ratio into your CPU and NET resources. 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 WAXP 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 WAXP to your resources, you can vote for Transaction Validators (BP’s). 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”. Note: As stated above, the Genesis Block Member (GBM) rewards have ended, but the bloks.io site has not been updated to reflect that fact. 24 hours after you have staked your first WAXP tokens, the blue “Claim Vote” button will become active. Clicking that will stake the WAXP tokens you earned to your CPU and NET.
Clicking the “Claim Vote” 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 transaction link and scroll down until you find the rewards transactions. In the above example you can see that 4.49607137 WAXP was divided equally and staked to the user’s resources.
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Written by Subterranean for Wizards Guild