Staking guide for Gnosis Chain
What is GBC?
Gnosis Beacon Chain (GBC) brings extendable and accelerated beacon-network functionality to the Ethereum ecosystem. Applications can iterate through real-world strategies, stage important applications, or choose to run DApps in a faster, lower-stakes environment while enjoying the benefits of massive scalability.
GBC is optimized for certain parameters (block/epoch time) and can serve in a frontrunning capacity to important Ethereum consensus-layer updates. For example, the merge will first take place on testnets. Once thorough testing is complete, updates can then move to a production-level, real-world value environment (Gnosis Beacon Chain).
Validating on the GBC only requires the equivalent of 1 GNO, opening up validation opportunities for diverse groups of individuals across the globe. When you go to make the deposit, that 1 GNO is split into 32 mGNO to more closely mirror Ethereum, where you stake 32 ETH.
On Gnosis, rewards are paid out in mGNO (1 mGNO = 1/32 GNO).
What is Meant by ‘Consensus Layer’ and ‘Execution Layer’?
The Consensus Layer is responsible for the blockchain’s consensus. Pre-merge, this is known as the Beacon Chain. This is where the validators check and make sure that blocks are valid. To run this, we can use clients such as Lighthouse, Prysm, Nimbus, or Teku.
The Execution Layer is responsible for transaction bundling and execution. To run this, we use clients like Nethermind.
In order to check validity, the Consensus Layer sends a list of transactions and other data required to execute and validate them. The execution layer then assembles whats known as an execution block, verifies some pre-conditions, executes the transactions and then verifies the post-conditions. The result is then sent to the Consensus Layer.
💡 Note that any mention of transition from Proof of Work (PoW) does not apply to Gnosis.
Gnosis Chain users can now mint sGNO when they stake GNO / mGNO tokens and earn up to 18% APR wherever they go in the ecosystem. Staking rewards accrue daily in rGNO tokens, which can be reinvested back into the GBC for a compounding effect.
Staking guide and Steps
Stake your Gnosis tokens by following these few steps.
- Go to https://app.stakewise.io and connect your wallet. We recommend using MetaMask, but you can also use WalletConnect, Ledger).
- For this guide, we would be using MetaMask. If your MetaMask is not yet connected to Gnosis, switch by clicking on the network button, selecting Gnosis, and pressing Switch.
- Confirm the Network switch in MetaMask.
- Enter the GNO deposit amount into the Stake interface. Enter any amount of GNO to get started.
- Note you can also change the recipient address if desired. So copy the 01node address and paste in the recipient field.
- Confirm the deposit transaction in your wallet. You should now see sGNO added in the interface.
- Agree to the terms and press confirm.
- You will receive the same amount of sGNO tokens relative to the GNO you stake.
**01node Validator’s Addresses**