NNS pledge governance process
As the price of ICP tokens rises, ICP has gradually gained favor from the majority of value investors, which shows the increasing recognition of Internet computers. Next, I will introduce to you how to pledge ICP tokens into NNS. Get revenue. (Mainland users please ensure normal access: https://nns.ic0.app)
Important reminder
Before explaining this article, I must give you a clear reminder! ! ! ⏰
🎃🎃If you want to unlock ICP tokens after staking, you need to dissolve the neurons. Simply put, the time you get to get the tokens is determined based on the dissolution time you choose when staking. The minimum time is 6 months and the maximum time is 8 years! ! ! If the dissolution time unit you choose when staking is 8 years, then it will take 8 years after you [unpledge] to get back all the principal and interest! ! !
for example:
You stake ICP to Neuron at this time, and choose the unlocking time as 8 years. If you choose to unlock after holding it for 2 years, then you will have to wait 8 years from the moment of unlocking to get the principal!
Of course, the longer the unlocking time is, the more interest you will receive. If you pledge for 8 years, you can get 25% interest every year, and you can get double the principal in total! You can also choose to unlock in a shorter time. The NNS governance algorithm stipulates that the shortest time unit for ICP unlocking is half a year (180 days, but there is no voting reward). Currently, the annualized rate of dissolution in one year is about 12%.
How to stake ICP tokens to Neuron
Create an ICP NNS Internet identity wallet and transfer ICP tokens to your wallet address. For specific tutorials, please refer to my previous articles: ICP: How to Create an Internet Computer Wallet.
After transferring to the wallet, enter NNS - My Neuron Staking: https://nns.ic0.app/neurons and click the [Stake Neurons] button to start creating neurons.
What are neurons:
In order to facilitate the network governance of ICP, ICP tokens can be pledged to neurons to obtain the governance rights of the ICP network. One neuron represents a certain amount of ICP tokens, which cannot be withdrawn during a lock-up period. When a token holder locks a certain amount of ICP tokens in a neuron, the neuron holder is entitled to vote on governance issues and receive voting rewards proportional to the amount of ICP locked and the length of the locking period ( ICP token rewards).
Next, select the token source of the pledged neuron (default is the main wallet address), enter the pledge amount (at least pledge 1 ICP), pledge transaction fee: 0.0001 ICP (negligible), and then click the [Create] button to create Neurons.
Please be careful when operating this interface! ! Here select the neuron dissolution delay date, the selection range is: 6 months to up to 8 years (fill in the number in days, the range is: 180 - 2920).
The additional issuance of ICP in the first year is 10% of the total amount, and will be reduced to 5% after 8 years. Unless the principal after pledge expires, there is no way to withdraw it in advance, so you must pay attention when setting it up.
The voting weight for 8 years is 200% (2 times), which translates into an annualized return of 25% (200%/8 = 25%).
There is no voting reward for staking for half a year, but there should be a staking reward (the exact amount is unknown). It is recommended that the staking time be at least one year, and you can get a total annualized rate of 12%.
Then confirm the pledge information and click the [Confirm and Set Delay] button.
Next choose which neurons to track vote for.
Because we must vote to get rewards after staking, but most of the time we don't have time to vote, but NNS supports delegated voting by tracking neurons, so that you can get voting rewards.
It is recommended that you choose an unofficial active neuron when following the vote. I chose here: 8YearsGang (ICP pledged to the 8-year party. This neuron is an active community organization that is more responsible for the ICP network).
Of course, you can also choose other neurons, and multiple selections are supported (it is recommended not to only choose the 8-year party, ICP needs to be decentralized to prevent evil governance from occurring).
! ! Note that choosing the official Dfinity neuron may not receive voting rewards sometimes, because the official does not participate in some voting, and he hopes the community will complete it.
Remember to select each item when voting so that you can get all the voting rewards. They belong to different network governance.
If you want to modify or add or delete tracking neurons when setting up tracking delegation voting, you can modify it here and click the [Follow Neurons] button.
After the pledge is completed, you can view your pledge information. If you want to continue to increase the pledge or extend the dissolution period, you can click the button to modify it.
Finally, what I want to tell you is that when doing anything, you must first try a small amount to make sure you are familiar with the process before doing a large amount operation. Do not directly pledge and dissolve for 8 years when your head is hot! ! The author of this article does not assume any liability for your pledge losses!
