BAKING

What is Baking?
“Baking” is the process of mining AKA creation of new coins in the Tezos blockchain
Do I Need a supercomputer to bake?
Not at all! You need just to delegate. We take care of the tech
How many tezos are created at each block?
The main “Baker” receives 16 tezzies, while 32 other bakers will endorse the block, each receiving up to 2 tezzies. All the above plus the fees generated in the block
What is a “bond”?
Every time a baker is picked to bake a new block, or to endorse it, he must put a certain amount of tezzies as a guarantee: 512 for every block, and 64 for every endorse. This way if he somehow acts in a way that can harm the blockchain not only he loses the prize, but also the bond! This can cost a lot of money

DELEGATION

What is Delegation?
By delegating, you give the baking rights of your tezzies to a baker. You never handle the private keys: the tezzies are still in your control. It’s just a way to earn more coins
As a delegate do I risk to lose money?
No. Delegates’ tezzies are only under their control, a baker can’t touch these coins or put them as a bond
When will I get my returns?
Once you delegate, the blockchain will give us the first reward after 7 full cycles (more than 20 days). Moreover, the rewards are frozen with the bond for 5 cycles to mature.
The "snapshot" explained
If I delegate i.e. at cycle 13, when do I will get rewards?

So I have to wait 12 full cycles?
Only the first time! After that, every single cycle we’ll get the new rewards, so it will be much better.
Is there a minimum to delegate?
We accept all delegates with 100+ tezos. If by mistake you delegate us less than 100, just increase the amount or withdraw cause we can’t account that amount
When will you pay me?

We pay you every single cycle! The amount is added straight to your account and it also compounds

OVERDELEGATION

I heard of “Overdelegation”. What is that?
As per above, every time a baker finds or endorses a block, he must put the bond as a collateral. This money is not available to him anymore for 5 cycles (about 15 days). If the baker doesn’t have any more tezzies available in his own balance, he can’t put the collateral, therefore forfeiting the possibility to bake the block; he will lose the prize. The delegate won’t lose coins, but he will not get any interest. That sounds like a loss of time!
How many coins should a baker have available to avoid overdelegation?
There is a magic number proposed by the community: about 8,25% (12 times) of the staked balance should be in the baker balance. This number comes out considering that every single coin is baking and the rewards are equally split above the whole community of bakers. Too bad this number is wrong!
Why? Everybody told me 8,25%!
The problem is that it’s impossible that everyone is baking. Consider what happens if just 50% of the tezos are “baking”: the rewards will come twice as fast. So you won’t need just 8,25% to avoid overdelegation, you should double this number to 16,5%!
What should I do now?
While writing this FAQ, about 60% of the coins are staking, so apparently a baker would need about 14% balance. But until cycle 64, the required bond is lower. In the meantime a baker with about 11% balance to staking balance ratio will be OK.

Easy math: pick the staking balance, and divide it by the balance.

  • If the result is lower than 8, it’s ok!
  • Between 8 and 10, it needs some attention by the baker.
  • If it’s above 10, the bakery is overdelegated.
Anything else I should know?
You are now a Tezos savvy! Just be part of TezoSteam, delegate your tezzies and join the Telegram Community

IN CASE OF OVERDELEGATION

Whatis the max amount of coins that TezoSteam can accept?
The limit will be shown in the homepage and also in our Telegram channel
I am currently delegating with you. Are my payouts safe?

Yes. If you delegated before the limit and we didn’t send you a message, you are good to go, no worries

I am a currently delegating with you. What about the payouts that I receive on my KT1 address every cycle?
They will be counted. We can reach an higher limit according to our estimate; but we have to leave room exactly for that reason
I am currently delegating with you. May I increase my balance?
As a rule of thumb – ask. We may have a bit of extra room, but better be safe
I am not delegating with you, but I’d really like to delegate with TezoSteam.
Send us an email (to info@tezosteam.com). It’s unlikely, but we do an exception for low amounts
I am a large Tezos holder and I’d like to invest in the bond pool so that you can raise the limit (doubling my rewards in the process).
That’s lovely! We invite you to read this post and to send us an email to info@tezosteam.com
You may also message us on Telegram. We are always there!