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Frequently Asked Questions
- What is delegation ?
Delegation is the process of assigning your Tezos tokens baking and endorsement rights to another account.
- What are baking and endorsement ?
Baking and endorsement are predefined processes in Tezos protocol which build the Tezos blockchain and award the baker with new minted Tezos.
- Why should I delegate my tokens to TzBake ?
TzBake uses your baking rights to mint new Tezos tokens and returns 86% of the minted Tezos tokens back to you.
- What kind of risks do I take by delegating my tokens ?
The only risk that you are taking is that the delegation service doesnt pay your rewards. Your capital is safe in your own account.
- How can I delegate my tokens ?
The specific instructions depend on the wallet which you are using.
But generally speaking, you should create a new KT1 contract and set our delegation address (available on our homepage) as the delegate and transfer your Tezos tokens to the contract address.
You can find the step by step instructions on our How To page.
- Can I cancel or reassign my delegation ?
Yes, you can cancel or reassign your delegation at any time from your wallet.
- How much gains can I expect ?
It depends on many factors. But simply speaking you can expect at least 5% annual return if you delegate and 8.5% annual return if you invest your tokens in TzBake investment program.
- What kind of hardware do you use to bake ?
It is actually one of the trade secrets. What we can tell you is that we own our infrastructure in a reputable datacenter, providing 100% uptime, DDOS protected, gigabit Internet connection to our nodes. Also our nodes are secured by different technologies which we can not reveal here.
We would not be using cheap cloud providers like AWS or etc.
The security of the node matters to us more than anyone, because of the security of our bond tokens.
- Do you provide a fixed or dynamic return ?
We provide a dynamic return of 86% of revenue in case you delegate your tokens to TzBake.
We provide a dynamic return of 100% of revenue + 50% revenue share in case you invest your tokens in TzBake.
- Can I track my delegation profits in realtime ?
Absolutely. You can use our delegation tracking tool on TzBake homepage to monitor your profits for every cycle in realtime.
You can see an example here :
- Your fee is expensive, I have found cheaper delegation services !
A lot of cheap delegation services are run by scammers, kids or incompetent people. Anyone can make a website in 10 minutes and claim to be a delegation service. It is open market. Just imagine how many people would open a bank if there was no regulations !
Based on Tezos protocol, the reward payouts are not due for at least one month so it takes the clients a long time until they find out they will be paid as promised or not.
We follow an industry standard fee for a professional service and provide the highest level of service quality, security and reliability.
But still if you decide to risk your rewards on a 5% fee baker who has just learned how to activate his Tezos wallet or has no plans to pay you when the time comes, we respect your decision and wish you the best of luck.
- Where does your revenue come from ?
Our revenue includes new Tezos tokens minted by baking and endorsing blocks and operational fees.
86% of all of our revnue will be paid back to your account.
- How do you pay back my returns ?
We would send your profit to your KT1 account so you would get compunded interest on it.
- How accurately do you calculate the profits ?
We have developed a proprietary adavanced accounting software which connects to the Tezos node RPC interface and by performing hundreds of queries, calculates all of deleguees shares based on the exact snapshot roll which was chosen to calculate our rolls. It is a precise calculation based on the Tezos blockchain and no approximation or averaging method is being used.
- When can I expect my first payment from the date of delegation ?
You could expect your first payment in approxiamtely 36-39 days! We understand it seems like a long time, but we are not holding your share! it is simply how Tezos protocol is designed and is same for all bakers. We pay you as soon as your reward is available.
For more information read this article: Baking & Delegation Explained
- What is a bond ?
Whenever we bake or endorse a new block, we should post a bond to the network. this bond will be frozen for 5 cycles.
We put up 100% of the required bond from our own account.
- What is over-delegation ?
Over-delegation happens when we have too much tokens delegated to our account. So we would have baking and endorsement rights, but we are short on required bond to use this right. In this case, the baking or endrosement opportunity will be forfeit to another baker and revenue will be lost for us.
- Can’t you control the delegations to your account so over-delegation doesnt happen ?
No, by design we can not control who delegates to our account.
- What is your policy in case over-delegation happens ? will it reduce my profits ?
It depends on when you have delegated your funds to us.
Our policy is “First come, First serve”.
Meaning the deleguees who delegated first will get their full profit and the deleguees who delegated later and caused the over-delegation will not get any profit.
- How can I make sure that my delegation will get the full profit ?
Because of the 6 months ramp-up period, there are no risks of over-delegation for TzBake right now.
But in case of over-delegation occuring in the future, we can see it coming way ahead of time and we will do the following to mitigate the situation:
– Publishing a public page listing the contracts which are in over-delegated status.
– Informing our deleguees who have subscribed to our newsletter.
– Providing over-delegated status in our performance tracking report page.
- I have more questions how can I contact you ?
You can use our website live chat feature or contact us by email: email@example.com