In this guide, I will show you how to activate Tezos staking and secure a passive income from the crypto currency Tezos (XTZ). You can then exchange the Tezis for EUR or USD at any time on an exchange of your choice. With Tezos staking, an annual return of around 7% is achieved. The effort to activate staking via the Tezos Galleon wallet is around 5 minutes.

What you need and what you should consider to activate staking

• You need the Tezos Galleon Wallet. Download: Galleon Wallet (GitHub)
• You should own a certain amount of Tezos. Recommended minimum is 50 Tezos.
  There are bakers who do not pay less than 50 Tezos! Therefore, check the baker's page beforehand.
• A baker address to which you want to delegate.
  E.g. Staking Facilities (no minimum quantity): tz1WpeqFaBG9Jm73Dmgqamy8eF8NWLz9JCoY
• Note: Never delegate to over-delegated bakers, as over-delegated bakers do not pay!

Let's get started - Activate Tezos (XTZ) Staking (Galleon Wallet)

Log in to your Galleon Wallet and press the plus sign on the left side:

The pop-up window "Fügen Sie einen Delegierten hinzu" appears. See image below.


Enter your data as shown in the image below:

(1) The Bakker address. In this example: tz1WpeqFaBG9Jm73Dmgqamy8eF8NWLz9JCoY (Staking Facilities)
(2) The amount of Tezos you want to delegate. In this example, 100 Tezos.
(3) Choose the amount of the fee. In this example, I selected "Mittlere Gebühr" so that processing is faster. The fee can also be low.
(4) The wallet password and (5) press the button "Delegieren".

This process takes about a minute. After that, a new delegated address (KT1 address) will be created for your Tezos wallet. In addition, your Tezis that you entered for delegation will now be automatically delegated to the baker via this newly created KT1 address.

That's basically it. Now 14 cycles must pass before the first payout is made to your KT1 address. All subsequent payouts are made per cycle, i.e. approximately every 3 days.

Now that the delegation has been successfully completed, your wallet should look like this:

Under (1) is the non-delegated Tezos amount.
Under (2) is the delegated Tezos amount. Via the KT1 address to the baker (4)
Under (3) is the total amount of Tezos available in this wallet.
Under (4) is the manager address of the baker to whom the Tezis have been delegated.

Check staking via Tezos Explorer

Now you might want to check whether everything was processed correctly on the Tezos blockchain. You might also want to know in which cycle the delegation was carried out in order to determine the cycle of the first payout.

To do this, copy your Tezos manager address and enter it in the Tezos Explorer (tzstats.com).
In this example, the manager address is: tz1gJqBBh8YPrYjABzZcpXL8pTd4nHiyuoAJ

You should get something like this overview. Under the Others tab (2) you can see the newly created KT1 address and the delegated amount of 100 Tezos (3).

If you now click on the KT1 address (3), you will jump to the overview of the KT1 address.

Here we see the delegated amount (2) and to which Bakker (here Staking Facilities) the amount was delegated (3). The Bakker Manager address is hidden under (4):

If you click on the block number (4) (above image), you jump to the delegation's blockchain block. In this example, it is block 710494.

Here you can see more information. What is interesting, however, is the cycle. In this example, the delegation took place in cycle 173 (1).

14 cycles must now pass before the first payout is made. That is, until cycle 187 is reached. Since a cycle lasts about 3 days, about 42 days must now pass before the first payout is made.

Update 06.01.2020 - first payment in cycle 187 made

As expected, the first payout actually occurred in cycle 187.

To be precise, 3x 0.043936 Tezos (3) were transferred on January 6, 2020 (4) in cycle 187 (2) to the KT1 address (KT1JT8CjVMaPX63Y4vn4omdS4MTDZVE5DPMg) (1). That is, after 14 cycles. Unfortunately, it is not known why the payment was made in three parts.

The important thing, however, is that the automatic payout of Tezos works. Staking facilities therefore pay out as expected. This means that the Tezos can stay there :). From now on, the KT1 address will receive Tezos as passive crypto income every 2-3 days.

Retrieve delegated Tezos / end staking (delegation)

If you no longer wish to delegate your Tezos, you can cancel your delegation at any time.

However, Tezos delegation is not terminated in the classic sense. In the event that you no longer wish to delegate the delegated amount (and the income received to date) to the bakker, you simply need to either re-delegate it to another bakker or simply transfer the amount back to your manager address.

Basically, however, a transfer back to your own manager address makes little sense. If you need the Tezos, i.e. have to transfer it somewhere, you can do this directly from the KT1 address without having to go through your own manager address.

However, if you still want to transfer the Tezos from the KT1 address to your manager address, proceed as follows:

Tip 1
Newly created Tezos address not on the blockchain?

For reasons not yet clear or to avoid address spam, it may happen that a newly created Tezos address is not immediately registered on the blockchain. When attempting to transfer Tezos to a newly created address, the following message appears in the Galleon Wallet:

This contract doesn't exist on the blockchain. or in german: Dieser Contract existiert nicht auf der Blockchain..

To solve the problem, simply transfer any amount of Tezos to this newly created address. This will immediately announce or register the address on the blockchain.

That's it, I hope the information has helped you and you can successfully delegate Tezos and generate a passive income of currently about 7% p.a.