Celebrate the Tezos Rio Upgrade With 0% Fee Staking

TL;DR

  • Increased network rewards: Tezos staking now offers 12.9% NRR (3x more than delegation) with daily automatic compounding.
  • Faster access to funds: The Rio upgrade reduces the unstaking period to just 4 days (down from 10) making staking even more attractive.
  • Zero-fee promotion: For a limited 30-day period, P2P.org is offering 0% fees on Tezos (XTZ) staking.

The Tezos blockchain has just rolled out another significant improvement with the activation of its 18th protocol upgrade — Rio. To celebrate this milestone, P2P.org is offering a limited-time promotion: 0% fees on Tezos (XTZ) staking for the next 30 days!

The Rio Upgrade: What's New?

The Rio upgrade brings several important improvements to the Tezos network that benefit both bakers (validators) and users:

Faster Cycles, Quicker Access to Your Funds

One of the most user-friendly changes in Rio is the reduction of cycle length from approximately 3 days to just 1 day. This seemingly simple change has profound implications:

  • Unstaking period reduced from 10 days to just 4 days — access your staked XTZ much faster
  • Changes to staked balances are reflected in consensus rights after only 2 days (previously 6 days)
  • Staking parameter changes activate after 5 days instead of 14 days
  • Rewards are distributed daily rather than every 3 days

Incentivized Data Availability Layer (DAL)

Rio introduces changes to the distribution of participation rewards, allocating 10% to active Data Availability Layer node operators — a crucial component for Layer 2 scalability and the Tezos X roadmap. This positions Tezos for significant growth in transaction throughput and overall network utility. The updated reward weights, effective since the start of the Rio upgrade, can be found on the Tezos Documentation.

Improved Network Resilience

The upgrade also increases network reliability by reducing tolerance for inactive bakers. Bakers are now marked inactive after 2 days (down from 8 days) but can return to active status in just 2 days (previously 6 days).

The Staking Advantage: Why You Should Consider Staking Over Delegating

While delegation has been the traditional way to participate in the Tezos network, direct staking was introduced last year  to further contribute to network security while offering compelling advantages at the same time.

1. Increased Network Rewards

After the introduction of Tezos staking, it initially provided rewards that were twice (2x) as large as those from delegation. However, following the Quebec upgrade implemented on January 20, staking XTZ now provides three times (3x) greater rewards than delegation. While network rewards are continuously adjusted by the Adaptive Issuance mechanism, you can rest assured that staking will continue to offer three times the rewards. This is one of the key factors that makes staking particularly attractive.

2. Automatic Daily Compounding

Unlike delegation rewards, which rely on baker payments that can be irregular, staking rewards on Tezos are automatically distributed and compounded daily at the network level. This maximizes your earnings without requiring any extra steps.

3. Quick Access to Funds

Now the unbonding period for staked XTZ equals just 4 days — a significant improvement that balances earning potential with reasonable access to your funds. While delegated funds remain liquid at all times, a short lock-up in exchange for up to three times higher rewards through staking offers an attractive trade-off, especially when compared to the lengthy unbonding periods on other networks.

Limited Time Offer: 0% Fees on Staking with P2P.org

To celebrate the Rio upgrade and encourage more Tezos holders to experience the benefits of staking, P2P.org is offering 0% fees on all Tezos staking for a limited time.

As one of the original Tezos network participants (operating since 2018), P2P.org combines industry expertise with institutional-grade security for your staked assets. Our perfect uptime record and transparent operations make us an ideal partner for your Tezos staking needs.

Why Stake With P2P.org?

  • Zero fees for a limited time (30 days with potential extension)
  • Operating as a Tezos baker since 2018, nearly since network inception
  • Full commitment to governance processes
  • Institutional-grade security and reliability
  • Dedicated support team

How to Get Started

Ready to increase your Tezos rewards? Whether you're new to staking or want to convert your delegated XTZ to staked XTZ, we've got you covered. Please refer to our comprehensive guide covering the most popular wallets to get started.

Don't Miss This Opportunity

Taking into account all the recent changes favoring staking — including the 3× rewards and the reduced four-day unbonding period — now is the perfect time to make the switch and maximize your Tezos rewards. Notably, staking activation is instant for current delegators, leaving no reason for hesitation.

The limited-time 0% staking fee promotion is our way of celebrating Rio and helping the Tezos community capitalize on the latest network improvements. Join us in embracing this exciting new chapter for Tezos!

Frequently Asked Questions

About the Rio Upgrade

Q: How does the cycle reduction affect my staking rewards distribution?
A: With Rio, staking rewards are now distributed daily instead of every 3 days. This provides more regular compounding, helping your rewards grow faster.

Q: Will my delegator rewards be paid out daily now?
A: The protocol doesn't specify when delegation rewards must be paid — this remains at the baker's discretion. P2P.org will always be responsible for providing reasonable timelines that take into account effective compounding and cost efficiency

Q: What is the Data Availability Layer (DAL) and do I need to worry about it? A: The DAL is a key component for Tezos scalability. As a staker or delegator, you don't need to take any action — the benefits will come automatically as the network capacity grows.

Q: Are there any security risks with this upgrade? A: No, the Rio upgrade maintains Tezos' strong security model while improving user experience. The shorter unstaking period doesn't impact security but makes many network operations smoother.

About Staking vs. Delegation

Q: If I'm currently delegating with P2P.org, how do I switch to staking? A: Visit stake.tezos.com, connect the wallet you're currently using for delegation, and follow the prompts to "Convert to Staking." The process takes just a few minutes.

Q: Will I lose rewards if I switch from delegation to staking?
A: No. Any pending delegation rewards will still be distributed to you according to our regular schedule, while your new staking rewards will begin accruing immediately.

Q: How often can I expect rewards distribution?
A:
Considering that the delegation activation and freezing periods are over, delegation reward payouts will follow your baker’s specific payout schedule. In the case of staking, rewards will always be distributed daily.

Q: What's the main difference between staking and delegation?
A: The key differences are: (1) Staking offers 3x higher network rewards (12.2% vs 4.1%), (2) Staking rewards compound automatically daily, and (3) Staked XTZ has a 4-day unbonding period while delegated XTZ remains fully liquid.

Q: Do Tezos (XTZ) rewards compound?
A:
Yes, for both delegation and staking, though there are slight differences. In the case of delegator rewards, the compounding effect depends on the baker’s payment schedule. That’s why it’s important to choose a baker with regular, timely payouts who also covers transaction fees (such as P2P.org). On the other hand, staking rewards are automatically distributed and compounded daily at the network level, maximizing your earnings without additional steps.

Q: Is there a minimum amount required for staking?
A: No, you can stake any amount of XTZ. However, given transaction fees on the network, we recommend staking amounts where the higher rewards will meaningfully outweigh the cost of transactions.

About the 0% Fee Promotion

Q: How long will the 0% fee promotion last?
A: The promotion is initially set for 30 days and will end on 31.01.2025, but we may extend it based on community response.

Q: What happens to my staking fees after the promotion ends?
A: After the promotion period, our standard competitive fee structure will apply to new rewards earned. The exact rate will be announced before the end of the promotion.

Q: Can I unstake during the promotion period?
A: Yes, you can initiate unstaking at any time. Remember that the new 4-day unbonding period will apply.

Q: Does P2P.org have stake capacity limits?
A: Yes, our staking capacity is determined by our self-stake amount. Currently, we're only at 11.9% of our staking capacity, so there's plenty of room for new stakers.

Have more questions? Contact our support team at support@p2p.org or join our Telegram community.

The information provided above is for informational purposes only and should not be construed as, or relied upon as, investment, financial, or any other type of professional advice. P2P.org or any associated parties do not offer any form of advisory services, and nothing shared here should be considered as a recommendation or endorsement for any financial decisions. P2P.org are not responsible for any decisions made based on the information provided. You are encouraged to consult with a qualified financial advisor or professional before making any investment or financial decisions.