Everything you need to know about Kava, Harvest and staking. Simple explanation and instructions.
Harvest will be managed by holders of the $HARD token.
A total supply of $HARD - 200 million tokens. 20% of them (40 million) will be distributed among holders&stakers of $KAVA.
$KAVA is the governance token of the Decentralized Bank Kava. With $KAVA, you can participate in the governance of Kava.
Dawnload the wallet and create an address
To become a $KAVA holder, you need to create your kava-address and top up your balance.
There are several ways to create a kava-address.
The easiest and most convenient way to create a kava-address is to dawnload the Cosmostation Wallet app.
The kava-address is in the Kava-chain, not in the wallet!
Anyone who knows the mnemonic (not to be confused with memo) can access the kava-address from any wallet, or via the command line.
Safely keep your mnemonic (24 words) — write it down on paper.
Never pass it on to third parties!
After installing the application, you will be asked to create a pin code:
four numbers + letter
If you forget your PIN, it’s okay. You can always uninstall the application and reinstall it. After reinstallation, you will need to re-import the addresses into the wallet.
Cosmostation Wallet allows you to create addresses for different blockchains on the Cosmos-SDK.
Kava is a blockchain based on the Cosmos SDK.
We need to create a kava-address.
(1) choose KAVA
(2) click on “+”
You will see this:
(1) Import Mnemonic - if you already have a kava-address, then you must have a mnemonic (unchanged password) of this address.
Click on Import Mnemonic if you want to add an existing address to the Cosmostation Wallet.
Mnemonic Phrase - this is usually 24 words in a certain sequence. But there may be 12 or 16 words.
(2) Watch Address - you can enter any kava-address and find out its status.
Yes! In the blockchain, everyone can see all existing addresses, balances and transactions!
But you will not be able to perform actions with this address.
(3) CREATE - click if you want to create a new kava-address.
After clicking on “CREATE” you will be warned that the mnemonic is a unique password and no one can recover it. Better to write it down on paper, or store it on devices that don’t have access to the Internet.
You are solely responsible for maintaining your mnemonic!
Cosmostation doesn’t have access to your mnemonic, and will not be able to restore it, if you lose it!
Take it seriously and click on “Show Mnemonic”.
(!!!) This is your mnemonic! Write it down! Better twice! With this mnemonic, you can access your address from anywhere in the world.
I took a photo of the mnemonic and posted it for educational purposes only!
Never do that! I will never use this address.
Anyone who knows the mnemonic can access the address!
After you have recorded your mnemonic, click on “Create Wallet”.
Functionality of wallet, and how to top up balance of address
Hooray! You have created a kava-address! Congratulations!
(1) The name of your address. It can be anything. This is for your convenience. It can be changed in “SETTING”. You can change the name, but not the address itself!
(2) Click to create another address, or switch to another already created one.
(3) This is your kava-address, which can be accessed with the mnemonic. You can share this address. In the blockchain, an address is public information.
(4) Click to see the QR-code of your address, or share your address.
(5) Click to purchase $KAVA by credit card payment.
(6) Click to send $KAVA from your address to another kava-address.
(7) Click to see your wallet settings. There you can change the name of the address (but not the address itself!), select the source of price information, and change other settings.
To top up the balance of your address, you can:
- purchase $KAVA directly from Cosmostation Wallet (5);
- buy $KAVA on the exchange, and send it from the exchange to your kava-address;
I will not dwell on the exchanges in detail, you can independently find information on the Internet.
Here is the instruction from the Binance exchange.
After purchasing $KAVA on the exchange, find $KAVA in the list of available balance, and click on “Withdraw”.
Enter your kava-address to withdraw funds.
Withdrawing funds from the exchange will take you a few minutes.
You don’t need memo to withdraw $KAVA to your address.
To deposit funds on the exchange — you need to input memo.
Don’t confuse memo with mnemonic.
Never put your mnemonic in a memo field!
After transferring funds to your kava-address, you will see this:
The course source can be selected in “SETTING”.
(2) Available - initially $KAVA will be on the Available Balance. This means that you can transfer $KAVA to any other kava-address, or delegate $KAVA to validators.
“Delegation” and “staking” are the same thing.
(3) Vesting (Delegable) - this is the balance from which you can delegate, but you cannot transfer $KAVA to other addresses.
Unless you are a developer, you will never be faced with this kind of balance. Read more about vesting addresses here.
(4) Delegated - after delegation (staking), $KAVA from “Available Balance” will go to “Delegated Balance”.
You cannot send $KAVA from “Delegated Balance” to another kava-address.
To transfer $KAVA from “Delegated Balance” to “Available Balance”, you need to “Undelegate” $KAVA.
When you delegate $KAVA, you become a Delegator. You will receive a reward for delegation in $KAVA and $HARD.
(5) Unbonding - when you start undelegate funds, $KAVA from “Delegated Balance” goes to “Unbonding Balance”.
You cannot transfer and delegate $KAVA from “Unbonding Balance”.
The unbonding period takes 21 days.
After 21 days, $KAVA from the “Unbonding Balance” will automatically go to the “Available Balance”.
During the unbonding period, you will not receive a reward in $KAVA and $HARD.
(6) Reward - you receive a reward for delegation every time you create a new block: ~ once every 7 seconds.
You can “Claim Reward” — then it will go to the “Available Balance”.
You can “Reinvest Reward“— then it will go to the “Delegated Balance”.
If you collect a reward once a year, then your profit for delegation will be about ~ 6.5% per year (depending on the validator’s commission).
But if you collect rewards more often and reinvest, you will have a growing percentage.
Delegation fees can be changed by voting.
(7) Delegate is the same as “stake”. By clicking on “Delegate” you can see the list of validators, and select the validators for delegation.
Better to delegate $KAVA to several validators to prevent network centralization.
(8) Vote - since Kava is a Decentralized Bank, that controled by $KAVA holders, after delegation, you can create your own proposals, and take part in voting for the proposals of other delegators.
Instructions on how to vote for proposals in Kava in just 8 clicks — here.
(9) CDP Market - Kava allows you to mint $USDX, and secure the price of stablecoins with other crypto-assets: $BTC, $BNB, $ETH, $XRP, $ATOM
You can find instructions on how to mint $ USDX here.
(10) Participate - if you have minted $USDX, you can participate in Crypto Payday and receive an additional $KAVA reward once a week.
When participating in Crypto Payday, your crypto collateral assets will be frozen for 365 days. But all this time you will receive a reward once a week!
Delegate $KAVA and choose validators
By delegating $KAVA to validators, you become a Delegator.
By doing this, you increase the security of the network, and reduce the volatility of $KAVA.
For this, you receive a reward from the network in $KAVA, and among other things, you will receive a part of the $HARD tokens, and you can take part in the goverence of Kava.
I will explain everything to you with a personal example.
Before us is the screen of my kava-address:
On my “Available Balance” — 50 $KAVA. This means that I can transfer 50 $KAVA to any other kava-address, or delegate (stake) my $KAVA.
On my “Delegatied Balance” — 250 $KAVA. This means that I have already delegated 250 $KAVA to validators.
Click on “Delegate”:
(1) “My” is the list of validators to which I have already delegated $KAVA.
I am delegating $KAVA to several validators to prevent centralization.
(2) “Top” (List of Active Validators) — Click to see the entire list of validators that support Kava’s network security.
Choose validators from this list.
Validators from “Top” can move to “Other”.
(3) “Other” (List of non-Active Validators)— a list of validators that are not currently participating in the network, for one reason or another.
Do not select validators from this list.
Validators from “Other” can move to “Top”.
(4) The validators to which I have already delegated $KAVA are indicated here.
Click on “Top” to view the list of valid validators and choose one more (or several) validators for delegating $KAVA.
This is a list of validators sorted based on the “Voting Power”.
“Voting Power” is the total amount of $KAVA, which is the sum of the validator’s own $KAVA and the $KAVA delegated to the validator.
Validators can be sorted according to three dimensions:
(1) “By Name” — in alphabetical order.
(2) “By Voting Power” — starting with the validator with the maximum amount of $KAVA.
(3) “By Yield” — starting with the validator that will bring you the most profit.
Let’s sort the validators by profitability:
For each validator, you will see an icon, a name and two indicators:
“Voting Power” — the higher the Voting Power, the more influence the validator has on the network, and the more interested he is in maintaining the network.
The “Average Yield” is the percentage you will receive for delegation (staking) per year.
As you can see, my three validators (Cosmostation, 0% commission — Melea Staking-Pool, SG-1) are highlighted in red.
The “Voting Power” of the Cosmostation is more than 3.6 million $KAVA. This means that it is a reliable validator and is unlikely to leave the network.
The “Average Yield” of Cosmostation — 5.49% per year.
0% Fee — melea Staking-Pool and SG-1 give me more— 6.46% each. But their “Voting Power” is 182K and 35K $KAVA, respectively, which is much more lower than Cosmostation.
I know these validators (I will list their contacts below), and therefore I trust them.
If you click on “Other”, you will see a list of validators that, for one reason or another, no longer support the network, or are in the jail.
The validator can go to jail for various reasons: power outage, internet connection lost, hard disk burned out, or the validator tried to cheat.
If the validator goes to jail, or leaves the network, you willn’t lose your balance. All you risk — is to lose the reward not collected in time.
Let’s go back to “Top” to choose a validator we can be sure of.
I already delegate to Cosmostation.
Binance charges itself 100% of income. “Average Yield” of Binance Validator — 0%. So, i will not choose it.
Binance takes all the profits for itself, after which it distributes 5% to those who delegate Binance from their exchange. But 5% is much less than the “Average Yield” of other validators.
P2P Validator is a time-tested validator. They validate many different networks, and they definitely won’t go anywhere.
The “Voting Power” of P2P Validator - more than 5.2 million $KAVA.
The “Average Yield” - 5.81%. An excellent combination of price and quality! So we will delegate to them: click on P2P Validator.
(1) Here we see the icon, name (P2P.ORG — P2P Validator), and a description of the validator: https://p2p.org
(2) There are four important metrics in this field:
“Total Bonded” is the same as “Voting Power”. The more $KAVA under the control of the validator, the higher its interest in the network.
“Self Bonded Rate “— The percentage of the total amount $KAVA, that belongs directly to the validator.
0% means that all the $KAVA, that is under the control of the validator is delegated to it by someone else, and the validator does not have a personal $KAVA.
“Average Yield” — the percentage that you will receive for delegating $KAVA to the validator.
“Commission” — the percentage that the validator takes for the provision of validation services.
10% means that the network pays the validator ~ 6.4% per year, of which he takes 10% (0.64%) for himself, and sends the remaining 90% (5.81%) to you as a reward for delegation.
Now when we understand what characteristics the P2P Validator has — click on “Delegate”.
(1) This displays the amount of $KAVA you want to delegate to the validator. You can enter the quantity manually.
(2) You can add the amount of $KAVA to delegate with one click. In my case, I clicked on “Max”. That is, everything that I have on the “Available Balance”.
Then click on “Next”:
On this screen, we are asked to enter memo. Not to be confused with “menemonic”!
Memo is required to send $KAVA to the exchange address, or KavaTipBot. For delegating, voting, sending funds to another address — no memo is required!
Leave the memo field empty. Click on “Next”:
We are asked to provide a fee per transaction. The higher the fee, the faster our transaction gets into the block. The speed of the transaction when delegating is not important. Make sure the slider is set to “free”.
Click on “Next”:
(1) We are asked to once again make sure that we have specified everything the way we want: We are delegating 50.036492 $KAVA, with zero fees. Delegate P2P Validator funds, without any memo.
Click on “Confirm”:
We are reminded once again that we can lose some of the reward if something happens to the validator. And that in case of withdrawal of funds, we will need to wait 21 days, during which we will not receive a reward, and we will not be able to withdraw $KAVA to another address.
We understand, that nothing will happen with P2P Validator.
Click on “Confirm”:
The process is underway.
We are waiting for a new block to appear. It’s ~ 7 seconds.
(1) If you see a green checkmark next to “Success” then everything is fine!
(2) This is the hash of your transaction. Using this hash, you can always find your transaction in the blockchain. Clicking on the “arrow from the square” will show you your transaction in mintscan.io
(3) General information about your transaction. Who delegated, to whom delegated, how much delegated, how much paid for the fees.
(4) “Share” — you can send a link of your transaction to other people. This is not private information. Everyone can see it.
(5) “Done” — press to return to the overview of your address.
We see that on our “Available Balance” there is 0 $KAVA, and there was 50 $KAVA.
At the same time, on the “Delegated Balance” there was 300 $KAVA, and there was 250 $KAVA.
You can also notice that while we were doing all our actions, our reward increased from 0.009108 to 0.009233 $KAVA.
Click on “Delegate”:
We can see that in my list of validators now — four validators:
Cosmostation, Melea, P2P and SG-1.
You can collect a reward from all validators with one click: “Claim all Rewards”:
We will be shown that we want to collect a reward from four validators:
Click on “Next”.
Leave the memo field empty:
Click on “Next”.
Make sure the slider is set to “free”:
Click on “Next”.
We check the information:
Click on “Confirm”.
We are waiting ~ 7 seconds …
If you see a green checkmark next to “Success” then everything is fine!
Click on “Done” to return to your address overview.
Click on “Delegate” again, and in the list of our validators, click on P2P Validator:
(1) All information about the validator is listed here. I have already described this field.
(2) There are two indicators in this field:
“Delegated Amount“— the amount of $KAVA, that we delegated to the validator.
“Unbonding Amount” — if we undelegate funds, they will be transferred from “Delegated Amount“ to “Unbonding Amount”. They will stay there for 21 days, after which they will be transferred to the “Available Balance”.
(3) Delegate — Click to delegate additional funds that are on “Available Balance”.
(4) Undelegate — Click to withdraw funds, first on “Unbonding Balance”. The funds will be on the “Available Balance” in 21 days.
(5) Redelegate— Use this function to redelegate funds to another validator. This feature can be used no more than once every 7 days.
(6) Reward — the number of rewards that you can claim right now.
“Daily Return” — How many rewards you will receive from the validator per day.
“Monthly Return” — How many rewards you will receive from the validator per month.
(7) Claim Reward — transfer the reward from this validator to the “Available Balance”.
(8) Re-Invest — delegate the reward from this validator back to the same validator. This will increase the number of next rewards — will make the percentage grow. The more often you reinvest, the more you end up with. You pay nothing for reinvestment.
- We learned how to create addresses, top up addresses, choose validators and delegate funds to them, collect rewards and reinvest it to receive more reward in the future.
- In addition to the reward for delegating $KAVA, you will also receive $HARD tokens.
- Both $KAVA and $HARD can be used not only to make a profit, but also to participate in network goverance.
- It is better to delegate to several validators, and you need to choose validators from different weight categories, both in terms of “Voting Power” and “Average Yield”.
- The better the network is decentralized, the more stable it is.
The more stable the network, the higher its value.
Information about my validators
At the first, I want to say that I propose those validators to which I delegate myself.
I chose these validators not only for their “Voting Power” and “Average Yield”, but also because I see their activity within the community, and I can contact each of them personally.
I leave you their contacts:
Official Website: https://www.cosmostation.io
Cosmos Web Wallet: https://wallet.cosmostation.io
Block Explorer: https://www.mintscan.io
I hope, this instruction helped you to understand process better))
The instruction was prepared by Vladimir Ponimajushij
If you like my instructions, you can send me $KAVA, $USDX or $HARD: