Gnosis Staking
Welcome to the world of Gnosis staking!
Gnosis Chain (formerly xDAI network) is a community-owned, Ethereum-compatible Layer-1 network operated by a diverse set of validators around the world. Gnosis has a strong culture of home stakers running nodes from their homes, that are not reliant on cloud providers or data centers. Currently, there are over 200,000 validators who secure the network.
The chain uses a unique dual-token model. xDAI is a stable token used for transactions, payments, and fees. Proof of Stake protection is provided by the GNO token with the consensus-layer Gnosis Beacon Chain.
Operating a Gnosis validator currently earns you approximately 13% GNO consensus rewards (Apr 2024) as well as transaction fees in xDAI from the blocks you build. You can check the current yield of GNO staking and many other statistics on this Dune Dashboard.
As an active participant in the Gnosis Chain network, your role will involve running a node and acting as a validator. Validators have the responsibility of proposing, verifying, and vouching for the validity of blocks. To ensure the honesty of validators, you are required to post some GNO as collateral. Gnosis Chain allows you to start participating as a validator with a stake as low as 1 GNO. In return for your services as a node operator, you will receive rewards in both xDAI and GNO tokens.
The following schematic diagram provides an overview of the Gnosis Staker's Journey on the AVADO:
Compared to the Ethereum Solo Staker's Journey, the steps involved in Ethereum and Gnosis staking are very similar. In both cases, you will set up the Execution and Consensus Clients. You will need to generate the validator keys, make the staking deposit, set the Withdrawal Address and the Fee Recipient Address. The process of partial withdrawals ("skimming" of consensus rewards) and final exiting are also very similar.
The key differences between Ethereum and Gnosis staking are as follows:
| Ethereum Staking | Gnosis Staking | |
|---|---|---|
Staking Token | 32 ETH | 1 GNO |
Deposit Site | Ethereum Staking Launchpad | Gnosis Chain Deposit Site |
Execution Rewards | In ETH, sent to Fee Recipient Address | In xDAI, sent to Fee Recipient Address |
Consensus Rewards | In ETH, sent to Withdrawal Address | In GNO, claimable at the Withdrawal Address |
AVADO provides Gnosis Nethermind for Execution Client, and Gnosis Teku for Consensus Client. MEV-Boost is not applicable on the Gnosis Chain.
The Steps
The following are the steps for Gnosis staking on AVADO:
Getting Started on the Gnosis Chain. To begin, learn how to connect to the Gnosis Chain through your wallet, and how to acquire some xDAI and GNO tokens.
Set up the Gnosis Clients. You will need to set up and fully sync your Execution and Consensus Clients (Gnosis Nethermind and Gnosis Teku).
Generate Keys. You will need to generate your staking keys. The key generation process will provide you with the keystore files, which contain the validator keys to be loaded into the Consensus Client. There is also a deposit data file, which is required for depositing your 1 GNO stake to the Beacon Chain.
Stake 1 GNO. Deposit 1 GNO as proof of stake to become an active validator. Make the deposit at the Gnosis Beacon Chain Deposit web site.
Import Validators Keys. Import your keystore files into your Gnosis Teku to start validator duties.
Monitor Your Node. Stay informed about your validator's performance and status. Utilize the gnosischa.in website and mobile app for real-time updates.
Rewards and Penalties. Understand your responsibilities as a validator, including attesting and proposing blocks. Learn about potential rewards and penalties for missed duties or non-compliance with network rules.
Set Withdrawal Address. Control the destination of your staked funds and rewards by setting the Withdrawal Address.
Exit from a Gnosis Validator. At some point, you may decide to exit from the validation process. Our guide will provide you with the necessary information and steps to finally exit.
Happy Staking!
Last updated
