Overview of On-chain staking on Kraken – Kraken

On-chain staking

On-chain staking utilizes blockchain Proof-of-Stake protocol to generate rewards through a process typically called “staking”. We use the term “On-chain” to differentiate this traditional form of staking from a separate, “Off-chain” staking service we provide in limited geographies (Off-chain staking does not utilize Proof-of-Stake protocol).

Benefits of On-chain staking on Kraken vs staking on other platforms:

✓ Start earning rewards instantly — no waiting or lockup periods
✓ Payouts twice a week
✓ One of the highest returns in the industry
✓ Stake your assets in just three clicks from your Kraken balances
✓ Instant un-staking

Assets eligible for On-chain staking

Currently we offer On-chain staking for Tezos (XTZ), Polkadot (DOT), and Cosmos (ATOM).

We have plans to introduce On-chain staking for other assets in the near future — such as Dash (DASH). Follow our blog for announcements.

Balance hold & impact on equity for margin trading

While your assets are staked via our On-chain staking service, they are not available for trading and cannot be pushed to your external (non-Kraken) account. You will generally be able to instantly un-stake assets at any time for any amount.

Staking Tezos (XTZ) also impacts your equity for margin trading, because it is a collateral currency and will be removed from your trading and equity balances while staked. Your equity balances affect your free margin and margin level for margin trading.

Rewards & Minimums

Currency	Rewards Per Year (RPY)	Stake Minimum	Reward Schedule
Tezos (XTZ)	6%	0.000001 XTZ	Monday/Thursday Starting* at 01:00 UTC
Cosmos (ATOM)	7%	0.2 ATOM	Sunday/Wednesday Starting* at 01:00 UTC
Polkadot (DOT)	12%	0.2 DOT	Tuesday/Friday Starting* at 01:00 UTC
Kusama (KSM)	12%	0.2 KSM	Wednesday/Saturday Starting* at 01:00 UTC
Flow (FLOW) / FlowH (FLOWH) Coming Soon	20%**	TBA	TBA

*The reward distribution may take several hours

**Initially we will offer a staking reward of 20% (RPY) for Flow tokens, however, since this is a new blockchain the on-chain rewards are likely to decrease over time so this number may be adjusted lower.

Your rewards will be compounded with the Grow Rewards feature, which adds your earned rewards every week back into On-chain staking. This means if you continue to leave your funds staked you may earn more than the RPY percent.

Time

Unlike other staking services, at Kraken there is no minimum On-chain staking time needed to earn rewards. You start earning pro-rated rewards for On-chain staking as soon as your instructions to stake are processed by Kraken (which may be within minutes of you staking your funds).

For example, if you only utilized On-chain staking for a few hours and then un-staked your funds, you would still be credited pro-rated rewards on the next payout day. In contrast, on other services you wouldn't receive anything. Unlike other staking services we also have no bonding and unbonding period for On-chain staking.

Fees

There are currently no fees for staking or unstaking.

Mobile

It is not possible to stake or un-stake on mobile because the Kraken API (which is what the mobile app is based on) does not have any commands for staking.