ICP staking with NNS frontend dapp

From Internet Computer Wiki
Revision as of 12:34, 12 May 2022 by Emmaperetti (talk | contribs) (added internet identity tutorial link: https://smartcontracts.org/docs/current/tokenomics/identity-auth/auth-how-to/#create-an-identity-anchor)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

Stake ICP utility tokens in a neuron

After you transfer ICP utility tokens to the Network Nervous System dapp, you can use the Network Nervous System dapp to create and manage neurons, vote on proposals, and create canisters on the Internet Computer.

Neurons are required to participate in governance and earn rewards. To create a neuron, you must lock up some number of ICP utility tokens for a period of time. The minimum stake required to create a neuron is one ICP utility token. You can configure the period of time the stake is locked from six months up to a maximum of eight years.

To stake ICP utility tokens:

1. Open a browser and navigate to the Network Nervous System (NNS) dapp.

2. Click Login to connect using your Internet Identity. Learn here how to create an Internet Identity.

3. Verify your identification number, then click Login to authenticate using the device and authentication method you have registered.

4. Click Proceed to access to the Network Nervous System (NNS) dapp.

5. Click Neurons, then click Stake Neuron.

6. Type the number of ICP utility tokens to stake, then click Create.

7. Set the dissolve delay for the neuron to control the length of time the stake is locked, then click Update Delay.

dissolve delay

8. Click "Yes, I’m sure to confirm the lock up period", then close the window to review the newly-created neuron properties.

neuron properties

What you can do after creating a neuron

After you have locked the stake and created a neuron, you can:

  • Start the dissolve delay timer by clicking Start Unlock.
  • Increase the dissolve delay period by clicking Increase Dissolve Delay.
  • Stop the dissolve delay after starting the unlock countdown by clicking Lockup.
  • Increase the number of ICP utility tokens you have staked.

Starting and stopping the dissolve delay

Creating a new neuron does not automatically start the dissolve delay timer. You must explicitly start the timer countdown by clicking Start Unlock.

For example, if you set a dissolve delay of one year and want to immediately begin the countdown, you should click Start Unlock as part of the process of creating the neuron. If you change your mind and want to stop a current countdown in progress, you can click Lockup, After you click Lockup to stop the dissolve delay, you can click Start Unlock to resume the countdown without changing the existing dissolve delay period. If you want to continue a countdown already in progress but extend the lock up period, you can click Increase Dissolve Delay then select a longer dissolve delay.

Adding ICP utility tokens to an existing neuron

After you create a neuron, you can increase the number of ICP utility tokens you have staked in that neuron to increase your voting power and rewards. For example, if you initially stake a small number of ICP utility tokens, then decide to purchase additional tokens, you have the option to create a new neuron or "top-up" your existing neuron.

To increase the stake in an existing neuron:

1. Follow the steps in Stake ICP utility tokens in a neuron to stake the original neuron using the Network Nervous System (NNS) dapp.

2. Look up the transaction in the Internet Computer Association transaction dashboard to get the neuron address. You can use the account identifier for your main ICP ledger account to search for your transactions.

3. Return to the Network Nervous System (NNS) dapp, then click New Transaction.

4. Paste the neuron address from the transaction dashboard into the Destination address field, then click Continue.

5. Type the amount of ICP utility tokens you want to add to the specified neuron, then click Continue.

6. Verify the transaction details, then click Confirm and Send.

7. Verify the completed transaction, then click Close.

confirm top up

8. Click the Neurons tab to see the increased stake.

Disburse dissolved neurons into an account

When the dissolve delay timer for a neuron reaches zero, you can disburse the neuron’s stake and transfer its locked ICP utility token balance to the ledger account you specify. After you take this step, the neuron identifier and its ledger history are permanently removed from the governance canister.

To disburse a neuron and return its ICP utility tokens:

1. Open a browser and navigate to the Network Nervous System (NNS) dapp.

2. Click Login to connect using your Internet Identity.

3. Verify your identification number, then click Login to authenticate using the device and authentication method you have registered.

4. Click Proceed to access to the Network Nervous System (NNS) dapp.

5. Click Neurons, then click Unlocked neuron that has reach the ended of its dissolve delay period.

For example:

unlocked neuron

6. Click Disburse.

7. Type an address or select an account to receive the ICP utility tokens.

confirmation

8. Verify the transaction information, then click Confirm and Send.

For example, check that the Destination address matches the intended address of the dev-projects linked account:

confirm send

9. Verify the completed transaction, then click Close.

If you transferred the ICP utility tokens to one of your accounts in the Internet Computer ledger canister, you can click the ICP tab and see your new balance reflected. For example:

updated icp

Spawn new neurons

As you vote on proposals—either directly or by following the votes of other neurons—the maturity associated with your neuron increases, which in turn increases the rewards you earn for participating in governance. When the maturity for a locked stake reaches a minimum threshold of one ICP, you can spawn a new neuron. The spawn operation creates a new neuron that locks a new balance of ICP on the ledger.

For example, if you have a neuron that contains 100 ICP utility tokens and it has a maturity of 10 percent, you can spawn a new neuron that contains approximately 10 new ICP tokens. For the neuron with 100 ICP tokens to reach the minimum threshold for spawning, its maturity would need to be greater than one percent.

After you spawn a new neuron from an existing neuron, the maturity for the existing neuron falls to zero.

To spawn new neurons from an existing neuron:

1. Open a browser and navigate to the Network Nervous System (NNS) dapp.

2. Click Login to connect using your Internet Identity.

3. Verify your identification number, then click Login to authenticate using the device and authentication method you have registered.

4. Click Proceed to access to the Network Nervous System (NNS) dapp.

5. Click Neurons, then click the neuron that has reached the minimum maturity required to spawn a new neuron.

6. Click Spawn Neuron.

Keep in mind that the dissolve delay for newly-spawned neurons is one day, giving you the option to collect value from the ICP utility tokens by unlocking them or to increase the dissolve delay to collect additional rewards.

For more information about maturity and spawning new neurons, see the following articles:

Vote on proposals

ICP voting with NNS frontend dapp

Submit a proposal