What is baking?
Baking is to Tezos what mining is to Bitcoin. Instead of using a proof-of-work system like Bitcoin, Tezos is based on a proof-of-stake system. Instead of burning computing power to earn the right to create a block, bakers obtain rights when the Tezos they own (or which are delegated to them) are randomly selected.
What is delegation / Why should I delegate?
Delegating is transferring the baking rights of our tezzies to a baker. Tezzies themselves are still under your control, but the delegate can bake on your behalf. Delegating allows to earn interest on your tezzies without having to set up a baking node, which requires tech knowledge, specific hardware, security measures and a significant investment (currently at least 8’000 XTZ).
Can I lose money by delegating?
No. Tezzies stay under your control all the time, the baker cannot touch them. There is also no freeze or lock of any kind, you can always use all your funds immediately if you need to.
What is your fee structure?
We charge a 7.4% dynamic fee on all rewards, which means 92.6% goes to our delegators. Fee is set to increase to 9.9% after cycle 200.
What is your payment schedule?
Payments are made each cycle, immediately after they are baked. No need to wait for rewards to be unfrozen, you are paid right away. Compared to most bakers, this is 6 cycles in advance.
Why should I choose Tezgate?
We are the only baker combining third party insurance and 100% efficiency commitment, ensuring you the highest possible efficiency and rewards. We have a comfortable capacity to begin and can increase it later, should it be required. We are committed to react quickly in case of issue or inquiry.
What is a bond?
A bond is an amount the baker must put as guarantee when it bakes or endorses a block, to ensure it will not try to cheat the network. If the baker is caught trying to cheat, e.g by double baking, the bond is forfeited. Only the baker risks losing bonds, as a delegator you never put your funds at risk.
How to delegate to Tezgate?
Do I need to sign up?
There is no sign up requirement whatsoever. Anyone who delegates to us will get paid provided we are not overdelegated, without any further action. If we reach overdelegation, rewards will be paid on a first-come, first-serve basis.
What is overdelegation?
Every time a baker creates a block or endorses one, it must put a bond as collateral to guarantee it will not try to cheat the network. If the baker doesn’t have enough funds available to put as collateral, it can’t bake or endorse the block it is entitled to and forfeits the rewards associated.
What is the maximum amount Tezgate can accept?
We have a very large spare capacity and ensure to always increase our balance when needed so newcomers can delegate with peace of mind. If you want to be extra sure, you can check real time capacity on Tezos Nodes